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Why Travel Insurance Matters: Medical Claims in 2024

New data from Cover-More Travel Insurance shows that New Zealand travellers could face serious financial consequences if medical emergencies arise overseas.

In their review of top travel insurance claims for 2024, Cover-More revealed that the largest payouts were all for medical-related issues. The biggest claim—nearly $1 million—came from treatment in the United States. Other six-figure claims occurred in Nepal, Singapore, Canada, Japan, and the UK.

Will Ashcroft, Cover-More New Zealand Managing Director, said that while the US remains the most expensive destination for medical treatment, other countries are now contributing to high-cost claims.

“The US continues to dominate as the most expensive destination for medical emergencies, but the appearance of these other destinations underscores the importance of medical cover, regardless of where you're going.”

Medical issues made up about 40% of all Cover-More claims in 2024. Common problems included pneumonia, broken bones, foodborne illness, altitude sickness, cellulitis, and severe viral infections. Even minor illnesses like a cold sometimes led to serious hospitalisation.

Other Insurers Report Similar Trends

Travel Insurance also reported significant payouts in 2024 for medical emergencies, cancellations, and lost property. CEO Jo McCauley highlighted that surgeries and air ambulance transfers were among the most complex and expensive cases.

“We’ve had flus, respiratory illnesses, and many falls, but our top claims involved complex medical issues. These situations are distressing and extremely costly. Most people couldn’t afford the care we’ve covered.”

Southern Cross Travel Insurance (SCTI) also noted recurring claims in 2024 for illness, accidents, and even unusual events such as animal-related injuries in Asia.

Travellers Still Wary of Cost

Despite the risks, price remains a key reason some travellers choose to go uninsured. The Kantar Travel Insurance Market Monitor, conducted in late 2023, found that cost was still the leading factor in this decision.

Ashcroft noted that while the average travel insurance premium in 2024 was $317, the highest medical claim surpassed $900,000.

Importance of Choosing Policies That Address Specific Health Needs

Talk with your broker to get help choosing the best travel insurance policy for your specific health needs. If medical cover is a concern, this could mean paying a slightly higher premium for a more comprehensive policy or paying extra to cover existing medical conditions.

When travelling to countries known for particularly high medical costs, insurance premiums may also be higher but this generally reflects the level of risk.

Insurers also recommend that travellers stay vigilant, practice good hygiene, and ensure their policy suits both their destination and planned activities.