Travel insurance sales have surpassed 2019 levels this quarter for one major insurance company.

Allianz Partners reported a 25 per cent increase in policies sold between June 1 and September 30 compared to the same period in 2019.

New Zealand chief sales officer David Wallace said this was not a huge surprise given the state of travel at the moment.

“Post-pandemic, all the things that can go wrong with travel, can and will go wrong,” he said, adding that Covid had given people a “heightened awareness of risks involved when heading overseas.”

 “Everyone’s got a story of someone they know who’s had delays, had to pick up additional costs for airlines, had to buy some new baggage because it’s been delayed and everyone’s wary of that,” he said.

Not all destinations have seen an equal uplift in insurance sales.

Sales have increased 200 per cent for travel to Fiji compared to 2019 but the increase was just 4 per cent for travel to Australia.

According to Wallace, travel insurance has not typically been a priority for travellers heading to Australia.

“Pre-pandemic, 60 per cent of Kiwis would travel to Australia without travel insurance,” he said, adding that this could be because they tend to stay with friends or family, or have work over the cost, so expenses are lower.

While proximity can make a trip to Australia feel somewhat domestic, Wallace said travellers can still rack up large costs if issues arise.

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“Whilst the complexity or the cost of travel to Australia might not be the same as heading off to the US or Europe, many of those same things can go wrong,” he said.

“I think it’s misunderstood, that whilst in Australia, medically necessary care in a hospital is covered as part of our relationship with Australia, many costs are not covered.”

Travellers in need of an ambulance would have to foot the bill, as well as cover other general incidents relating to things like rental cars or lost belongings.

Wallace said comprehensive cover has been popular amongst customers, who want to know they are fully covered while abroad.

Given the continued disruption in the industry, Wallace said perspectives around the importance of insurance were shifting.

“Travel insurance has always been a consideration for people travelling, and I think more and more so it’s becoming a view that if you can’t afford the time and effort to take travel insurance then you can’t really afford to be travelling at the moment.”