TORONTO — Travel insurance has arguably never been more important than it is today. Amid ongoing geopolitical tensions, rising travel costs and high jet fuel prices contributing to flight disruptions and reduced airline capacity, today’s travel environment is more unpredictable than ever. Add in weather events and shifting border requirements, and the risks of travelling without coverage are harder to ignore.

Yet despite this, Gen Z and Millennial travellers – two of the most active and experience-driven travel segments – continue to be the least likely cohorts to purchase travel insurance. According to Skyscanner, 52% of Gen Z travellers globally take at least three leisure trips per year. However, data from Emergency Assistance Plus shows that nearly two-thirds of millennials are currently travelling without coverage.

Why are younger travellers choosing not to protect themselves and their travel investment? And how can travel advisors better communicate the value of insurance to a generation focused on experiences, flexibility and budget-conscious travel? Travelweek spoke with Will McAleer, Travel Health Insurance Association (THIA) spokesperson, to find out.

IT COMES DOWN TO COST

According to McAleer, the issue is not apathy toward protection but a mix of budget pressure, optimism bias and misunderstanding about what coverage actually provides.

“Younger Canadians generally do not opt out of travel insurance because they are reckless. More often, it comes down to cost, confidence and confusion,” he says, noting that many are highly skilled at budgeting and finding deals. 

“Many Gen Z and Millennial travellers are very good at finding lower-cost flights, alternative accommodations and flexible itineraries, but insurance can sometimes be viewed as an optional add-on rather than part of the essential cost of the trip,” he says.

COMMON MISCONCEPTIONS

A key misconception is the belief that health and age reduce the need for coverage.

“One of the most common misconceptions is that travel insurance is mainly for older travellers or people with known medical conditions,” says McAleer. “For younger travellers, there can also be a sense of ‘I’m healthy, I’m only going for a few days, and nothing serious will happen to me.’”

In reality, he notes, claims involving younger travellers are often unrelated to chronic illness.

“Many travel insurance claims involving younger travellers are not about chronic illness. They can involve accidents, foodborne illness, scooter or hiking injuries, lost baggage, delayed flights, missed connections, or a family emergency that forces someone to cancel or come home early.”

Another persistent misunderstanding is reliance on provincial health coverage, which only pays a small portion of a medical emergency and provides no coverage for disrupted travel plans. Plus, many Canadians assume that if they’re travelling within Canada, coverage isn’t needed. 

“But provincial health plans do not necessarily cover everything,” says McAleer, “and they generally do not address the broader travel risks, which include transportation home, emergency air or ground ambulance, trip interruption and lost baggage.”

INCREASED EXPOSURE

Ironically, while Gen Z and Millennials are among the least likely travellers to purchase insurance, they’re often travelling in ways that increase both complexity and risk exposure. 

“Younger travellers are often experience-driven,” says McAleer. “They are more likely to build trips around adventure, festivals, sporting events, destination weddings, multi-city itineraries, remote work, backpacking or destinations that are less familiar and less predictable.”

These styles of travel, while appealing, introduce more variables.

“A multi-destination itinerary, for example, creates more opportunities for missed connections, baggage delays, schedule changes or a medical event in a place where the traveller does not know the local health system.”

Even routine activities can carry risk.

“Hiking, cycling, skiing, surfing, scooter rentals and boat excursions can all lead to injuries that require assessment, treatment or transport.”

For McAleer, one of the most important but overlooked elements of insurance is assistance.

“This is where emergency assistance and evacuation services become extremely important,” he says. “Travel insurance is not just a reimbursement product.”

REFRAMING THE CONVERSATION

For travel advisors, McAleer says the messaging needs to shift from product selling to experience protection.

“You are investing in the trip. Insurance helps protect the experience, not just the expense.”

He also recommends using real-world scenarios rather than abstract risk messaging.

“What happens if you break an ankle on a hike in Costa Rica? What if your flight cancellation causes you to miss the first night of a multi-city itinerary? What if you get sick before a $3,000 festival or a destination wedding trip?”

The key, he says, is relevance. After all, the goal is not simply to sell insurance – it’s to help the traveller make an informed decision.

“For younger travellers, advisors should also highlight benefits that feel practical and immediate: 24/7 emergency assistance, help finding care, trip interruption, baggage delay, missed connection support, emergency medical coverage, and evacuation or transportation when medically necessary.”

WHY NOW MORE THAN EVER?

The travel landscape isn’t what it used to be, says McAleer. Five to 10 years ago, many travellers primarily associated travel insurance with medical emergencies. Today, however, geopolitical tensions, global health concerns, severe weather events and evolving border policies have made coverage more important than ever. 

“Even if a traveller is not going to a high-risk region, global events can still affect them,” he says. “A fuel disruption of regional conflict can lead to rerouted aircraft, cancelled flights, longer travel times, added hotel costs or limited availability. Severe weather can close airports or delay cruises, while a border or entry-system change can create missed connections.”

It’s also worth noting that the cost of travel – including medical care abroad, hotels, flights and last-minute transportation – has increased significantly in recent years. 

“A traveller who becomes stranded and needs to change flights or requires medical treatment can face expenses that are far beyond the cost of the original trip,” adds McAleer. 

While insurance cannot prevent disruption and does not cover every situation, a comprehensive policy – combined with emergency assistance services – can provide travellers with access to expertise, care coordination and financial protection when they need it most. 

“The message to younger Canadians is simple,” says McAleer. “Travel insurance is not about expecting the worst – it’s about protecting your ability to keep travelling, recover from the unexpected and get help when you are far from home.”

This article originally appears in the June 18 issue of Travelweek. To read the issue, click here. 

For more on this topic, including tips and input from Blue Cross and Allianz Global Assistance Canada, check tomorrow’s Travelweek Daily. 

Lead image caption: Young travellers in Vietnam