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Rising Medical Costs Lead to Surge in High-Value Travel Insurance Claims

Southern Cross Travel Insurance Reports Significant Increase in Payouts

Rising Medical Costs Lead to Surge in High-Value Travel Insurance Claims?w=400

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Southern Cross Travel Insurance (SCTI) has reported a notable rise in high-cost travel insurance claims, underscoring the escalating medical expenses faced by Australian travellers abroad.
The insurer's most expensive claim last year amounted to $672,630, a 259% increase compared to the previous year's highest claim.

This particular case involved a 76-year-old woman who suffered a stroke while holidaying in Albania. The substantial costs were primarily due to the necessity of an air ambulance to repatriate her to Australia, which alone exceeded $500,000.

Other significant claims included a $362,034 payout for a woman who endured over two months of recovery in Thailand following a collapsed lung, urinary tract infection, and ruptured oesophagus. She also required an air ambulance for her return to Australia. Additionally, a traveller in Thailand received $282,754 after undergoing brain surgery due to a poolside accident.

Jess Strange, Chief Customer Officer at SCTI, highlighted the sharp increase in medical expenses and stressed the importance of comprehensive travel insurance. She noted that five claims last year surpassed the highest payout of the previous year, illustrating the unpredictable nature of travel-related incidents.

Strange also emphasised that beyond financial protection, travel insurance provides essential support for patients and their families. This includes ensuring access to appropriate medical care and, in some cases, arranging for family members to join the patient or facilitating their return home with medical assistance.

Geographically, Indonesia accounted for the highest number of claims, representing 17.8% of the total and costing approximately $1.87 million. Thailand followed with 8%, and the United States accounted for 7.6% of the claims.

These statistics serve as a stark reminder of the potential financial risks associated with international travel and the critical role of travel insurance in mitigating these unforeseen expenses.

Published:Friday, 20th Mar 2026
Author: Paige Estritori
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Please Note: If this information affects you, seek advice from a licensed professional.

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Subrogation:
An insurance carrier may reserve the "right of subrogation" in the event of a loss. This means that the company may choose to take action to recover the amount of a claim paid to a covered insured if the loss was caused by a third party.