Demand for travel insurance for cruise holidays has leapt in Australia as under 40s, empty nesters and families with older children all sign up for voyages.

Popularity is rising among new demographics, travel insurer InsureandGo says. 

Its data shows a 170% increase in travellers aged 26-40 taking out cruise travel insurance during the first seven months of this year, when compared against the final seven months of last year, and a 119% increase in single travellers of all ages.

It reports a 96% increase in cruise travel insurance purchases from all customers, and a 336% increase in August from a year earlier as the NSW Government ended covid protocols for cruises.

Chief Commercial Officer Jonathan Etkind says operators have made a conscious effort to broaden their appeal. 

Virgin Voyages offers an over-18s only cruise with a tattoo parlor, interval training workout classes and a casino, while Disney Wonder is particularly popular among families.

"It’s no surprise that an eclectic mix of people are booking cruises and taking out cruise travel insurance,” he said.

Cruise operators have also sought new ways to mitigate outbreaks of covid and other infections. Princess Cruises has enhanced air filtration with upgraded systems designed to replace air within public spaces every six minutes.

Cruises were significantly impacted by the covid pandemic but a cruise ship ban was lifted in Australia in April last year.

"It’s little surprise that the demand for cruise travel has increased,” Mr Etkind said. Cruise Lines International Association (CLIA) is forecasting cruise passenger volumes will reach 106% of 2019 levels this year at 31.5 million passengers.

InsureandGo says domestic insurance purchases fell 22% in January-July, when compared against the final seven months of last year, on heightened domestic traveller confidence in recent months following years of disruption to the aviation industry from covid restrictions, cancelled and delayed flights and mishandled luggage.

Domestic routes in June recorded a 47% drop in the average cancellation rate from a year ago.

Established in Australia in 2012, InsureandGo is owned by Europe Assistance and underwritten by Mitsui Sumitomo.

Southern Cross Travel Insurance CEO Jo McCauley says optional cruise cover is now available for domestic travellers in response to growing demand, and 23% of Australian travellers are planning a domestic cruise this year, while 39% of travellers are looking to get domestic travel insurance for upcoming trips.

Demand is strongest among families with children eight years and older (26%), followed by empty nesters (19%), with unforeseen cancellations or lost baggage the main drivers.

A record 70 cruise ships are set to operate in Australian waters from now to April, and Southern Cross says more Aussies are looking at domestic cruises as a desirable getaway.

“We’re now offering a cruise add-on to our domestic travel insurance policy,” Ms McCauley said. “Now that the cruising industry is well and truly bouncing back, we’re responding to customer demand for cruise cover when travelling around the country.”

In the last 12 months, Southern Cross has paid out more than $190,000 in domestic travel insurance claims, the most expensive being $10,000 when a customer was admitted to hospital with a blood infection and had to cancel their organised tour to receive treatment.

“There are significant costs associated with domestic cruises, and since the pandemic travellers are even more aware of the chance of cancellations due to unforeseen circumstances,” Ms McCauley said. 

Southern Cross cover does not include cover for medical and evacuation, and customers are advised to contact their private health insurer and Medicare to ensure they’re covered for medical emergencies.