Multiple travel insurance claims received for Cyclone Alfred

Date: 17/03/2025 by Southern Cross Travel Insurance

The after-effects of Tropical Cyclone Alfred are still being felt in NSW and Queensland, with significant damage, high water levels and disruption experienced by locals and domestic and international travellers.

Southern Cross Travel Insurance (SCTI) has looked into related claims for customers from Australia to understand the impact. SCTI had a unique view as a travel insurer operating in New Zealand and Australia, with customers who were travelling across the Tasman to the region, and domestically within and between states.

Jo McCauley, CEO for SCTI says, “We have been happy to help a wide variety of customers from both markets and we’re seeing extreme weather events driving an increase in claims, so we’re keen for travellers to understand just how important it is to protect their investment in a long-awaited holiday.”

As of 13 March, SCTI had received 37 claims from Australian customers. So far, more than $12,000 has been paid out to support them.

McCauley says, “Extreme weather events caused by climate change are increasing and as a result, travellers are facing higher rates of disruption both internationally and domestically.

“In 2024, we saw a 16% increase in disruption caused by natural disasters or severe weather events since we started looking at this issue in 2018. Each year since, weather conditions appear to be getting more extreme than the last. 2025 is already accounting for 9% of 2024’s catastrophic claims with Cyclone Alfred now adding further to this total.”

According to recent SCTI latest Future of Travel research, travellers appreciate the need for travel insurance when going overseas but often don’t see the importance of domestic travel insurance with only two in five (41%) saying domestic travel insurance is a high priority for them.

McCauley says, “When people think of travel insurance, they often think of medical costs first, but while these can be costly, other issues such as changes to your journey e.g. rebooking airfares or cancelling accommodation, can incur costs which can quickly add up. That’s why it’s so important to purchase travel insurance for domestic and international journeys to protect against the unexpected.”

SCTI offers advice to travellers who get caught in situations such as Cyclone Alfred:

• Purchase a policy when you first make your travel arrangements – not when you are aware an event has occurred, as travel insurance is designed to support unexpected events. Insurers like SCTI are likely to cover any claims for travellers already in an affected area, who had departed on their journey or who had already purchased a policy for travel to the region before the event was known. However, it’s important to note that you must be directly impacted e.g. evacuated from your accommodation or scheduled transport interrupted. SCTI always advises customers to follow advice from Australia’s DFAT’s Smartraveller website.
• If you’re on holiday and a disaster strikes, the most important thing to keep in mind is your safety. Follow the instructions of any officials or emergency personnel and seek medical attention if you need it.
• If you need to change travel plans to get home, contact your airline or tour operator in the first instance. If you’re concerned about what costs you’re covered for, it’s important where possible to speak to your travel insurance provider before making any changes. That way, you can be confident. If there are costs that your airline can’t reimburse you for, get in touch with your travel insurer to find out what they can cover. 
• To make things easier, keep any cancellation notifications from your airline, including emails, along with receipts for any expenses incurred by the event, such as accommodation and meals. You’ll need to submit these with any claim.