Australia Travel Insurance Market Overview, 2030

Australia’s travel insurance market has evolved significantly from its early roots in marine and accident coverage to modern, comprehensive bundled policies that address a wide array of travel-related risks. Initially, travel insurance focused on maritime transport and accident protection, reflecting the country’s reliance on shipping for commerce and early international travel. Over time, coverage expanded to include medical emergencies, trip cancellations, baggage protection, and other travel-related contingencies, aligning with the increasing complexity and frequency of domestic and international travel. The market has been shaped by major shocks, including global pandemics such as COVID-19, which highlighted vulnerabilities in traditional policies and accelerated the adoption of pandemic-specific coverage. Climate disasters, including bushfires and floods, have also underscored the need for policies that consider environmental risks, while airline bankruptcies and operational disruptions have reinforced the importance of financial protection for travelers. Structural growth in the market is being driven by rising travel volumes fueled by both leisure and business travel, increasing healthcare costs abroad, and the digitalization of insurance services, which has made policy comparison, purchase, and claims management more accessible and efficient. Additionally, growing awareness among travelers regarding personal risk and the benefits of comprehensive coverage has encouraged adoption across different demographic groups. Despite this progress, challenges remain, including relatively low penetration in certain regions, instances of fraud, and gaps in customer understanding of policy inclusions and limitations. Addressing these challenges while leveraging digital platforms innovative products and targeted consumer education will be key to sustaining the long-term growth and resilience of Australia’s travel insurance market.

According to the research report “Australia Travel Insurance Market Overview, 2030,”published by Bonafide Research, the Australia Travel Insurance market was valued at more than USD 550 Million in 2025.Australia’s travel insurance market is structured around three primary insurance types single-trip, annual or multi-trip, and long-stay policies, each catering to distinct traveler needs. Single-trip insurance is the most commonly purchased, designed for occasional travelers including tourists, business visitors, and students embarking on short-term domestic or international trips. These policies typically cover medical emergencies, trip cancellations, lost or delayed baggage, flight delays, and emergency evacuations, with coverage tailored to the specific journey and duration of travel. Annual or multi-trip insurance targets frequent travelers who undertake multiple domestic or international trips within a single year. These policies consolidate coverage for numerous trips under a single contract, offering convenience, flexibility, and cost-effectiveness while maintaining protections for medical expenses, trip disruptions, and luggage. They are particularly popular among business professionals, frequent leisure travelers, and expatriates visiting multiple destinations within the year. Long-stay travel insurance caters to students, expatriates, retirees, and others planning extended stays abroad, often ranging from several months to multiple years. These policies provide comprehensive protection, including extended medical coverage, trip interruption, emergency evacuation, and optional add-ons for adventure or high-risk activities. Across all policy types, the rise of digital platforms has enhanced accessibility, enabling seamless policy comparison, purchase, and claims management online, while insurers increasingly offer modular and customizable plans to match traveler profiles, destinations, and risk tolerances. The combined growth of all three insurance types reflects Australia’s maturing travel insurance market, driven by rising outbound travel, higher risk awareness, and the demand for flexible, tailored protection solutions.

In Australia, the travel insurance market offers a range of policy types designed to meet the diverse needs of domestic and international travelers. Single-trip travel insurance remains the most widely purchased option, providing coverage for individual journeys and typically including protection for medical emergencies, trip cancellations, lost luggage, and personal liability. This type of insurance appeals to leisure travelers, occasional international visitors, and those planning short-term vacations, offering flexibility and cost-effectiveness by allowing coverage to be tailored specifically to the duration and destination of a trip. Annual or multi-trip travel insurance caters to frequent travelers, including business professionals and residents undertaking multiple overseas trips within a year. These policies provide continuous coverage for a fixed term, simplifying administration, reducing the need for repeated policy purchases, and often incorporating higher coverage limits for medical and cancellation benefits. Multi-trip policies are increasingly popular in response to growing outbound travel volumes from Australia, rising travel-related costs, and consumer preference for convenience and comprehensive risk protection. Long-stay travel insurance is targeted at individuals relocating for extended periods, including students, expatriates, or long-term workers. These policies address extended medical coverage, emergency evacuation, trip interruption, and personal belongings protection over longer periods, often requiring detailed underwriting due to prolonged exposure to travel-related risks. The segmentation by insurance type allows providers to deliver tailored solutions that align with traveler frequency, duration, and risk profile, while digital distribution channels and aggregator platforms facilitate policy comparison and purchase, further enhancing accessibility and consumer confidence in Australia’s travel insurance sector.

In Australia, travel insurance coverage is designed to protect travelers against a wide spectrum of risks, with medical insurance forming the core of most policies. Medical coverage typically includes emergency treatment, hospitalization, outpatient care, and medical evacuation, reflecting the high cost of healthcare services abroad and growing traveler awareness. Policies often provide additional support such as 24/7 multilingual assistance, telemedicine consultations, and cashless treatment arrangements to enhance accessibility and efficiency. Trip cancellation and interruption coverage has become increasingly critical, particularly following events such as the COVID-19 pandemic and climate-related disruptions like bushfires and floods, offering reimbursement for prepaid expenses in the event of illness, travel restrictions, natural disasters, or other unforeseen contingencies. Baggage and personal belongings coverage protects against loss, theft, or delayed delivery of luggage and personal items, often bundled with other core coverages due to its high relevance for both business and leisure travelers. Accidental death and dismemberment (AD&D) coverage provides financial protection in the case of severe injury or death during travel, typically appealing to families, students, and adventure travelers. Additionally, other optional coverages include travel delay reimbursement, personal liability, coverage for adventure sports or high-risk activities, and specialized plans for cruises or extended trips. Collectively, these coverage types demonstrate the modular and flexible approach of Australian insurers, enabling travelers to customize policies according to their trip duration, destination, activity level, and personal risk tolerance, while digitalization has facilitated easy purchase, comparison, and claims processing, ensuring both convenience and comprehensive protection for diverse traveler segments.

The distribution of travel insurance in Australia is defined by a combination of online platforms and offline channels, reflecting both the adoption of digital technology and the continued relevance of traditional intermediaries. Online platforms have emerged as a primary channel, offering travelers convenience, speed, and transparency in policy selection. Digital portals provided by insurers such as Allianz Australia, AIG, and QBE enable consumers to compare, customize, and purchase policies online, with instant policy issuance, digital certificates, and streamlined claims submission. Aggregators and comparison websites, including iSelect, Compare the Market, and Finder, further enhance accessibility by allowing travelers to evaluate policy benefits, coverage limits, and premiums across multiple insurers, fostering informed decision-making and competitive pricing. Online distribution particularly appeals to younger, tech-savvy travelers, business professionals, and frequent international travelers seeking efficiency and convenience. Offline channels continue to play a critical role, particularly for travelers who prefer personal advice, complex itineraries, or higher-value policies. Traditional travel agencies, brokers, and bank partners provide in-depth consultations, policy customization, and guidance on claims, especially for long-stay students, expatriates, and family travelers. Banks often bundle travel insurance with credit cards or premium account offerings, providing an additional touchpoint for distribution. Australia’s travel insurance market reflects a hybrid distribution model, where online channels dominate for mass-market convenience and real-time decision-making, while offline channels maintain relevance for personalized guidance, high-complexity policies, and trust-driven engagement, ensuring broad coverage, accessibility, and customer satisfaction across diverse traveler segments.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Travel Insurance Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Insurance Types
• Single-trip Travel Insurance
• Annual or Multi-trip Travel Insurance
• Long-stay Travel Insurance

By Insurance Coverage
• Medical Insurance
• Trip Cancellation/Interruption:
• Baggage & Personal Belongings Loss
• Accidental Death & Dismemberment (AD&D)
• Others

By Distribution Channel
• Online Platforms
• Offline Channels Show more