July 2024 Market Update – Accident & Health

Since our last Market Update, there has been further uptake in both business and leisure travel, both internationally and domestically. Despite the current challenging economic conditions, we are seeing travel continuing to increase as has the demand for this insurance cover.

Rates and volume of travel have steadily continued to increase over the past 6 months, to pre COVID trends.

Claims are increasing due to disruptions to overseas travel including flights being cancelled, particularly around Russia and Ukraine. Cancellations are also occurring due to weather events.

Insurer policy wordings are remaining comprehensive with broad appetite, and COVID restrictions and exclusions are essentially obsolete.

We are seeing more incidental leisure activities and travel on the back of business trips, particularly internationally.

Considering the high volume of leisure trips on corporate travel policies, insurers are beginning to exit the leisure market with policies containing over 25 per cent leisure becoming hard to place. Policy definitions of Directors and Executives Private Leisure Travel are being updated to provide increased clarity regarding coverage intent.

Outside of leisure travel, insurer competition for traditional corporate travel policies is increasing, and renewal premiums can be expected at rollover rates.

As predicted in our last Market Update, workplaces have continued to increase mandated office days for staff which may result in more claims activity. This additional staff travel to and from the office brings more need for journey cover and claims in this space.

We are continuing to see medical expenses inflation which is impacting insurer rates accordingly. Where relevant, insurers recommend weekly benefit caps should be reviewed in respect of wage increases.

Policyholders are requesting an increase in the percentage of wages benefits payable, to match the cost of living increases we are facing throughout Australia.

Insurers are seeking minor increases within the sporting sector, and this will continue over the next 6-12 months.

Employees are continuing to work abroad globally as the travel industry continues to thrive.

Insurers persist in targeting grouped policies as opposed to one off policies for individuals, whilst premiums remain stable and comparable to previous years.

We expect to see more employees working abroad in the coming 12 months in line with global travel conditions.

For more in depth market updates by product class, profession and industry, please see our individual reports below: