Travel insurance for Australian travellers may be too expensive, a leading travel insurer says.
The latest figures from the Australian Travel Accident Compensation Scheme (ATACA) show that the average deductible is $16,717, compared to $19,919 for the same policy in Australia’s other major markets, New Zealand and Hong Kong.ATACA said it has not yet released data for travel insurance in Australia but that its policyholders have the same basic coverage as in the US.
“ATACA has no way of knowing if policies sold in Australia are actually cost effective,” Mr Turnbull said.
“But in the short term, the insurance market is very competitive and we’re going to have to keep doing everything we can to ensure that the premiums in Australia match those in the rest of the world.”
In a statement, ATACA said its policyholder pool has “the lowest premiums in the world” and that its customers “are the most likely to be injured”.”ATACAs policies cover all travel-related catastrophes, including accidental injuries, accidental death, and damage to property,” the statement said.
“Our policies cover a large number of policyholders in Australia and cover a number of policies across Australia.”
While Australia’s two main markets have lower deductibles than New Zealand, the country’s two smaller markets, Hong Kong and Singapore, have similar deductibles.
In Hong Kong, a $20,000 policy covers $40,000 worth of damage in a year, while in Singapore a $200,000 travel policy covers up to $1 million.
But there is no guarantee that policyholders who have suffered injuries and property damage will get coverage for them in Australia.
According to the Insurance Bureau of Australia, about 10 per cent of policyholder claims are covered by travel insurance.ATACA said that it is trying to develop a system to ensure policies are “sustainable”.
“At present, there are no data to compare the rates of different types of travel insurance policies, so the ATACA is working on a methodology to compare policies across countries and to develop policies that are not too expensive or too expensive and not too cheap,” Mr Hunt said.