TORONTO — They’re booking multi-city adventures, chasing bucket-list experiences and using AI tools to plan every detail of their trips. But when it comes to protecting those travel investments, many Gen Z and Millennial travellers are still choosing to go without insurance.

In a recent Travelweek article, travel insurance experts examined why younger travellers are among the least likely Canadians to purchase coverage. As a follow-up, Travelweek spoke with Blue Cross and Allianz Global Assistance Canada to take a closer look at how younger travellers are travelling today, why those travel habits can increase exposure to risk and how travel advisors can better position insurance to a generation focused on maximizing every travel experience.

According to Blue Cross, more than 3 out of 5 Gen Z and Millennials are using digital tools, including AI, to plan increasingly curated trips, from destination selection to budgeting and itinerary building. Meanwhile, industry data cited by Allianz Global Assistance Canada shows nearly two-thirds of millennials are currently travelling without coverage.

Both insurers point to cost sensitivity and perceived low risk as the primary drivers behind low uptake among younger travellers.

“Younger travellers are highly cost-conscious and focused on stretching their travel budget, which can make insurance feel like an easy place to save,” says Tayjua Squire, Manager, Corporate Communications at Allianz Global Assistance Canada.

Blue Cross says that while interest in travel insurance is growing among younger Canadians, many still underestimate the risks involved.

“Despite having lower purchase rates than older generations, younger travellers are showing a growing interest in travel insurance. Gen Z Canadians who are purchasing travel insurance claim that they feel more confident when setting out on a trip,” a Blue Cross spokesperson tells Travelweek.

“However, as many Canadians perceive travel costs to be rising, insurance can be seen as an easy expense to skip, especially by those who have not yet faced the risks of overseas medical issues or last-minute travel disruptions.”

The insurer adds that perception often shifts only after an incident occurs.

“Much like a cyclist who becomes more cautious after a fall, people often realize the importance of protection only after something goes wrong, while insurers aim to raise awareness on the matter beforehand.”

HOW TRAVEL PATTERNS INCREASE EXPOSURE

While younger travellers may be skipping insurance, both insurers say their travel behaviour often increases the need for it.

Blue Cross notes that Gen Z and Millennials are not only travelling more frequently but also planning more complex, experience-led trips using AI tools and digital platforms.

“According to surveys, more than 3 out of 5 Gen Z and Millennials use AI tools to plan a trip, which means they can now, more than ever, identify destinations that best match their preferences, stay within budget and maximize every travel experience,” says Blue Cross.

These curated trips often include multiple destinations, tighter connections and higher exposure to disruption.

Gen Z and Millennial travellers are also “taking more frequent international trips, often building complex, budget-driven itineraries with tighter connections or multiple bookings,” says Squire.

“They are also prioritizing experiential and off-the-beaten-path travel, which can involve higher-risk activities or destinations with limited access to healthcare. At the same time, they continue to travel to destinations like the U.S., where medical costs can be significantly higher.”

These patterns make protection more relevant not only for financial reimbursement but also for support during disruption.

“Whether it’s navigating and accessing emergency medical care abroad, or receiving real-time assistance in an unfamiliar destination, travel insurance helps ensure travellers can recover quickly and continue their trip with confidence,” Squire adds.

REFRAMING THE VALUE OF INSURANCE 

For travel advisors, both insurers say the challenge is not just selling insurance, but reframing its value in a way that resonates with experience-driven travellers.

“For Gen Z and Millennials, messaging needs to be practical, relatable and experience-focused,” says Squire.

She outlines several approaches advisors can use.

“Emphasize protection of the experience. Younger travellers are investing in meaningful experiences. Position insurance as protecting the entire trip, not just reimbursing costs if something goes wrong,” says Squire.

She also recommends highlighting support and assistance. “This generation values service and immediacy. Emphasize 24/7 access to medical and travel assistance, and help navigate foreign healthcare systems and real-time support during disruptions.”

Lastly, Squire says explaining risk in real terms will go a long way with younger travellers. “Concrete examples resonate. Emergency medical care abroad can cost thousands or significantly more in destinations like the U.S., and unexpected disruptions can lead to additional accommodation, rebooking or transportation costs.’”

WHY COVERAGE MATTERS MORE THAN EVER

Insurers agree that the need for travel insurance has intensified as global travel becomes more unpredictable and expensive.

“Travel today is more complex, more expensive, and less predictable than it was even a few years ago and that’s increasing both the likelihood and financial impact of disruptions,” says Squire.

She points to rising costs and global instability as key drivers.

“Rising travel costs mean travellers have more at stake, from non-refundable bookings to higher flight and accommodation expenses. At the same time, global uncertainties like geopolitical tensions and changing travel advisories can quickly disrupt itineraries.”

Operational disruptions are also adding unexpected costs for travellers.

“We’re also seeing more frequent operational disruptions across the travel ecosystem, which can lead to unexpected out-of-pocket costs for delays, rebooking, or extended stays. On top of that, medical costs abroad remain one of the most significant financial risks for Canadian travellers,” adds Squire.

Blue Cross echoes this sentiment, noting that flexibility is now essential in travel planning.

“In a world where unforeseen events and geopolitical instability are becoming increasingly common, especially in the past few months, flexibility has become essential when planning a trip in advance,” says Blue Cross.

The bottom line? Travel insurance is no longer just a safety net for rare emergencies, but a practical tool for navigating modern travel.

As Squire puts it, “Taken together, these factors mean travel insurance is no longer just a safeguard for rare situations, it’s a practical tool that helps travellers navigate uncertainty and protect their investment with confidence.”