Is there a brain drain? Southern Cross Travel Insurance takes a look at their numbers

23 July 2024 by Sue Hamilton

With recent headlines^[1] you’d be forgiven for thinking it’s your turn to switch the lights off on your way out, with a surge in the number of people leaving and a slowdown in the number of people arriving in Aotearoa to take their place. 

Southern Cross Travel Insurance CEO Jo McCauley CEO says, “We’ve had extraordinary growth in policy sales for New Zealand travellers heading overseas on holiday – in fact, we’ve just hit a record high. 

“But it’s not all about vacations to Fiji or Florence. We are seeing steady growth in our Working Overseas policies, perfect for New Zealanders who want the assurance of support if things go wrong when they are working abroad for an extended period.

“It’s clear to see how policy sales have been trending up in line with what we are hearing about New Zealanders seeking new opportunities offshore.”

“We know that living overseas is different from going on a holiday or visiting family and friends, and our Working Overseas policy reflects that. It’s incredibly important to understand that even in countries like Australia and the UK where New Zealanders enjoy reciprocal rights for some healthcare, depending on the length of their stay, they may not be covered for the same things they may access ‘at home’. 

“And when it comes to travelling and working in the USA / Canada, I’d definitely counsel New Zealanders to think again before heading away without insurance. Healthcare costs are astronomical in North America.” 

McCauley says, “the majority of SCTI customers taking out Working Overseas policies fall in the 18 – 40 age group with most also taking a policy with a length of between 151 – 366 days. 

“Customers in the UK, USA and Canada can purchase a subsequent policy to cover them up to a two-year period. This offers additional assurance when you are far away from whānau or the comforts of home and familiar medical systems.”

SCTI offers comprehensive cover for office-based, educational, healthcare and some manual work, including retail hospitality which can be tailored to each traveller. 

Unlimited medical and evacuation including treatment, doctors’ visits, prescribed medication, specialist treatment and medical transport costs, plus 24-hour emergency assistance, support of qualified medical advisers, guarantees for medical expenses and contact with family – all offer the kind of support needed when travelling.

Likewise, cancelling or changing a journey before departure due to illness, injury or natural disaster, plus cover to help attend a special event including a wedding or sporting event can come in handy when travellers are making the most of their new environment. 

“Just under 60 per cent of all claims made by our Working Overseas customers in the last 24 months were for medical and evacuation. Claims for baggage and personal items and changes to journey came in second and third, respectively. 

A couple of examples of when SCTI has helped those with illness include:

• South Africa: a young traveller rolled an ankle walking out of a supermarket and was subsequently admitted to hospital with a more serious complaint: claim value $20,341.52 
• USA: a traveller who experienced severe nausea and stomach pain from food poisoning: claim value $6,464.90 

However, McCauley highlights one of the most important elements of cover. 

“We often support customers who have urgently needed to return to New Zealand as a result of an unexpected illness or death in a close family member, such as a parent or grandparent^[2]. You just never know what’s going to happen, so it’s reassuring to know you are supported when someone you love suddenly falls seriously ill.”

At the end of the day, McCauley says, “many travel advisories state you should have insurance to help out when things go wrong. 

“We’ve had Working Overseas customers fall ill in countries like Vanuatu where the health system is ‘less than ideal’ and locations like the USA and Canada, where medical care is simply beyond the reach of the average income earner. 

“Don’t take unnecessary risks. It’s just not worth it, especially when a policy from a reputable brand like SCTI can offer comprehensive support.”

Key policy inclusions are outlined below:

• Medical, emergency dental and optical treatment, maternity care, ancillary services (chiropractor, physiotherapist), rehabilitation and occupational therapy, and mental health support
• Protection for personal belongings and cash, bank cards, travel documents and passports
• Personal accident (18-65 years) if the traveller or loved ones are injured during a journey
• And personal liability: damages, compensation and legal expenses.

For more information please head to scti.co.nz.

Help for the big move

To make a move overseas a little more fuss-free for travellers or the people who care about them, we’ve collated some very useful tips and tricks and pulled together a timeline to help plan ahead. See here for details.