Accident & Health Insurance Market Update: January 2025

Accident & Health Market Update
Tessa Zaikos - Bellrock Advisory

Tessa Zaikos

Corporate travel

The corporate travel market is experiencing continued growth, driven by the demand for both domestic and international travel. Despite challenging economic conditions, travel volumes are rising, leading to an increased need for travel insurance.

Claims volumes remain consistent, with the most common claim causes being cancellations due to weather events and lost or delayed baggage. Insurers are maintaining comprehensive policy wordings with a broad appetite for coverage. While exclusions related to Russia and Ukraine remain commonplace, COVID-19 related restrictions and exclusions are now largely obsolete.

Incidentally, leisure travel on the back of business trips remains a trending issue, particularly for those trips involving international travel. This trend of incorporating leisure travel components into corporate travel policies, has seen insurers beginning to exit the leisure travel market. Policies with over 25 per cent leisure travel coverage are becoming harder to place, and definitions for Directors and Executives Private Leisure Travel are being updated to clarify coverage intent. See our article here.

In terms of competition, insurers are focused on traditional corporate travel policies, leading to heightened competition in this space. While premiums for leisure travel continue to rise due to claims activity across the sector, business travel premiums have remained relatively stable.

Group personal accident and sickness (voluntary workers, journey and sports insurance)

As more staff return to the office due to employer mandated office days, this market is seeing a continued uplift in policy requirements. An increase in office-based work has led to a higher demand for improved coverage and a rise in claims, particularly related to the additional commute to and from the office, driving greater need for commute-based cover.

Medical expense inflation continues to put pressure on insurer rates. As a result, insurers are generally recommending a review of weekly benefit caps to ensure they remain aligned with rising wage levels. In line with the ongoing cost of living increases across Australia, policyholders are requesting higher wage benefit payouts to better reflect these economic conditions.

In the sporting sector, insurers are implementing slight premium increases, which is expected to remain steady.

Inpatriate/expatriate medical expenses

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

Insurers continue targeting group 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.

Your Bellrock Advisor can provide tailored guidance on employee benefits, travel insurance, and global workforce coverage. Contact your Bellrock Advisor

 


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