A recent survey by the Insurance Council of Australia (ICA) and Department of Foreign Affairs and Trade (DFAT) found that around 14 per cent of Australians travelled overseas without any travel insurance on their most recent trip. Among younger travellers (under 30), the figure rises to 23 per cent.
For corporate leaders and risk managers, these figures are more than statistics — they underscore a potential blind spot when staff travel for business, attend conferences, engage in “bleisure” travel or represent the company abroad.
Why this matters for corporate travel
- Business travel is not risk-free.
As the Smartraveller guidance emphasises, even familiar destinations carry risks for employees abroad — from health incidents to natural disasters, political unrest and local medical costs.
An employee travelling without appropriate insurance exposes the company to potential liability, incapacitation, emergency evacuation costs or reputational damage.
- Underestimating the destination = under-insuring.
The survey showed that a third of uninsured travellers skipped cover because they believed their destination was “safe”.
In a corporate context, sending staff to “routine” locations doesn’t eliminate risk — and the organisation should still ensure cover is in place.
- Lack of policy awareness = exposure for companies.
Among insured travellers, 93 per cent admitted they were unaware or unsure of at least one common exclusion in their travel-insurance policy. I
If an employee is relying on company-arranged cover, but that cover excludes certain activities (e.g., high-risk meetings, unplanned leisure excursions, alcohol-related incidents), both employee and employer could be exposed.
- Younger employees and less-experienced travellers are especially vulnerable.
Under-30s, travellers from low-income households, and those born overseas were more likely to travel uninsured.
For organisations with a younger workforce or international assignments, this means extra diligence is needed in travel-risk protocols.
Key takeaways for your corporate travel policy
- Ensure every travel assignment includes verified insurance cover.
Whether business or “bleisure” travel, insurance should be treated as non-negotiable pre-travel clearance.
- Review the policy’s scope, not just “yes insured”.
Confirm the policy covers the specific destination, activities, duration and business purpose. Check for exclusions (e.g., alcohol-related incidents, adventure/field work, medical evacuation).
Make sure employees understand and acknowledge the key policy aspects.
- Pre-travel briefing equals risk mitigation.
Include in the briefing: destination-specific risks, how to evaluate the travel-insurance policy, and how to access assistance. Use resources like Smartraveller for destination advice.
- Tailor insurance to the assignment.
A business trip may include meetings, local travel, and optional leisure activities. If the employee might engage in higher-risk activities (fieldwork, remote locations), consider supplementary cover or upgraded plans.
- Document the clearance process.
From a governance perspective, maintain records that an employee has travel-insurance cover appropriate to the trip, and that they have confirmed understanding of any exclusions.
By reframing travel insurance from a “nice to have” into a core component of corporate travel risk management, organisations can protect employees, control liability, and uphold operational resilience. As the survey shows, even seemingly low-risk travel can conceal exposure — and for corporate travellers, the stakes are higher.
