Japan medical claims rise amid rising travel

12/06/2025 - Media Release

As Japan’s popularity among travellers continues to soar, new data from 1Cover Travel Insurance reveals a sharp rise in illness and injury claims — prompting fresh warnings about the growing risks and costs of travel to the region.

The warning comes at a critical time, with Japanese authorities reportedly considering a mandatory health insurance scheme for tourists, amid concerns about the rising burden of unpaid medical bills and expensive treatment costs.

Additionally, with the Australian dollar weakening against the yen and given the high cost of medical care in Japan, 1Cover says travellers may be underestimating the financial risks involved — and overstretching budgets without adequate protection. 

Japan travel booms as medical claims climb

Japan remains one of the most popular international destinations for Australians, with tourism showing no signs of slowing down. According to the Japan National Tourism Organisation (JNTO), nearly a million Aussies flocked to the travel favourite last year, with a 50 per cent increase on the year prior. This year looks to be no different, with ABS data from February revealing Japan to be Australia’s third most popular overseas destination¹. 

Similarly, data from 1Cover Travel Insurance says that Japan has surged in popularity in recent years and is now the insurer’s fourth most popular destination. However, the insurer has also reported a rise in claims to the region, noting a specific increase of 46% in medical claims over the past year. 

Natalie Ball, Chief Operating Officer for 1Cover Travel Insurance, says that winter sports were a significant contributor to medical claims to Japan. 

“Last year, nearly a quarter of all medical claims for Japan trips were related to snow sport injuries. We’ve seen a noticeable rise in ski-related claims, which can be extremely costly due to the complexity of treatment and logistics. Common snow sport claims, such as knee sprains and fractures can result in tens of thousands of dollars in claim costs, particularly when you consider the need for emergency evacuations and business class return flights, which are often required post ski sport injuries.” 

Ball says that Japan was also home to some particularly expensive medical claims.  

“One of our more recent costly claims came after one of our customers was hospitalised with severe pneumonia while on a cruise ship to Japan, resulting in a $267,000 claim. Medical care in Japan can be very expensive, and with the Australian dollar fluctuating greatly, those costs can blow out fast.” 

Ball notes that while medical expenses were the top cause of claims for Japan, common travel issues, such as lost luggage and unexpected travel disruptions are also common.  

“Japan, like any destination, can be prone to unexpected events and natural disasters. Seemingly simple travel mishaps can quickly escalate when you’re far from home and vulnerable to a volatile exchange rate. Whether you’re planning to ski or simply sightsee, we strongly advise you to ensure you’re covered for the full cost of your trip.”  

Top five claims for Japan (1Cover claims data, 2025):  

1.Medical expenses  

2. Luggage & Personal Effects  

3.Additional Accommodation & Travel Expenses  

4.Cancellation Fees & Lost Deposits  

5.Disruption of Journey / Travel Delay Expenses  

Will a weaker Aussie dollar impact Japan travel?

Australia’s previously strong exchange rate against the Japanese yen - part of the destination’s skyrocketing appeal - has weakened substantially, slipping below 90 yen for the first time since 2023 in early April. 

Ball notes that Aussie dollar fluctuations have driven up costs for Australians visiting Japan, including expenses for medical services. 

“When the Aussie dollar is down, even standard medical treatments in countries like Japan can become unexpectedly expensive. Travel insurance helps protect against these rising costs and offers peace of mind in case of an emergency.” 

Ball adds that despite weakening exchange rates, 1Cover has seen an increase in travel insurance policies sold for Japan. 

“Although we haven’t seen a decline in policy sales to Japan, travellers are likely feeling the pinch and may be tightening their budgets. We urge those choosing to skimp on their cover, or forgoing it altogether, to carefully consider the impact of a medical emergency overseas. Travel insurance isn’t a cost you can afford to skip.”  

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FOR FURTHER INFORMATION, PLEASE CONTACT:
Natali Mansberg, Content Marketing Specialist.
E: natali.mansberg@1cover.com.au | URL www.1Cover.com.au

About 1Cover Travel Insurance
1Cover Travel Insurance was founded in 2003. Today, it is one of Australia’s largest providers of online travel insurance. At 1Cover, we’re dedicated to providing all customers with exceptional cover and support. We provide cover to more than 1.5 million customers in both Australia and NZ.