Australians want embedded travel cover, Cover Genius says

Cover Genius has released Australian consumer research showing that 75% of respondents would switch travel booking platforms if protection were automatically included with a purchase. The findings point to strong demand for built-in protection from travel platforms and banks.

The survey also found Australians remain cautious about AI and newer channels for buying protection. While 73% said they were open to AI-assisted buying, only 3% wanted AI to add protection automatically without asking. Another 39% preferred AI to suggest protection while leaving the final decision to them, and 26% said they would not let AI make purchases on their behalf at all.

The Australian results are part of a broader study of 1,392 consumers across seven countries, including 225 in Australia. Cover Genius also highlighted a separate comparison across Australia, the US and the UK showing Australians were less likely than their peers to buy protection through marketplace apps.

Risk awareness emerged as a central theme in the local data. Some 87% of Australians said they consider potential risks when booking travel or making major purchases, suggesting protection is already part of the decision-making process even if buying habits have not fully shifted to digital channels.

Automatic features also appear to influence willingness to buy. The findings show 76% of Australians were more likely to buy protection if it paid out automatically without a claim, indicating claims friction remains a barrier for many consumers.

Travel demand

Travel produced some of the clearest signals in the research. While 41% of Australians buy protection from standalone insurers, three in four respondents said they would be more likely to book through an online travel platform if protection were included automatically.

This points to a competitive opening for booking platforms that can build cover into the purchase journey rather than present it as a separate add-on. The figures also suggest consumers value convenience and clarity at the point of sale.

The highest-rated protection product among Australians was emergency medical cover while travelling, with 80% rating it highly. That put it ahead of cyber identity theft protection on 72% and trip cancellation or interruption on 70%.

Australian respondents ranked emergency medical cover more highly than consumers in the UK and the US, at 77% and 66% respectively. The gap suggests travel-related health risks remain especially prominent for Australians when weighing protection options.

Trust questions

The findings also show trust remains concentrated in established financial and travel brands rather than emerging digital channels. When asked who they trusted to provide coverage, 39% chose their bank or credit card provider, while 24% selected the platform they book through and 24% chose dedicated insurers.

Marketplace apps ranked much lower in actual purchase behaviour. Just 8% of Australians said they had bought protection through a marketplace app, compared with 21% in the US and 12% in the UK.

That reluctance also extended to AI-led decisions. Only 4% of Australians said they trust AI to handle protection decisions, while one in five said they would not share personal details with any AI.

Angus McDonald, Chief Executive Officer and Co-Founder of Cover Genius, said the results showed a gap between consumer awareness of risk and use of newer channels. "Australian consumers are highly risk-conscious, but their buying habits are still catching up to modern channels," McDonald said.

He said the underlying appetite for integrated cover was clear despite slower take-up of AI tools and app-based options. "While uptake in marketplace apps and AI tools is still in its early stages in Australia compared to markets like the US, the appetite for embedded coverage is undeniable," McDonald said.

Card gap

The data also pointed to poor understanding of protection already attached to payment cards. Only 30% of Australians said they had ever successfully used a card protection feature.

Another 27% said they did not know what their primary card covers at all. A further 46% were unaware of, did not trust, or had not considered the benefits included with their card.

When asked what would make bank-purchased protection more appealing, respondents put clear explanations of what is covered first, cited by 54%. A seamless banking app experience followed on 48%, ahead of competitive pricing on 44%.

These responses suggest the problem is not only price sensitivity but also confusion about product terms and access to cover. They also indicate financial institutions may be able to improve take-up by making protection easier to understand within banking apps.

McDonald said integration at checkout and simpler claims handling were key to persuading customers to take protection. "Automation and native integration are the single largest levers for growth in embedded protection," he said. "When cover is integrated seamlessly at checkout and claims are resolved quickly, protection stops being a reluctant add-on. It becomes a standout benefit, and a primary reason customers stay loyal to your platform."