Travel Check in with Damien Arthur

Edition 1: 
The Problem of Unpaid Tourist Medical Bills in Japan – Why Travel Insurance Matters More Than Ever

By Damien Arthur, Executive Head of Travel, Allianz Partners

As Australians plan their next overseas adventures, Japan continues to top the list of dream destinations. With its captivating blend of culture, cuisine, and cutting-edge innovation, it’s no surprise that the island nation ranks among the most visited destinations by Australian travellers.

But behind the beauty and order lies a growing issue that has prompted Japanese authorities to act - unpaid medical bills from foreign tourists, a trend that may soon see Japan requiring all foreign visitors to have mandatory health insurance before entry.

The Changing Landscape: Japan is Facing a Tourism Healthcare Burden

Recent reports indicate that Japanese authorities are increasingly focused on unpaid medical costs from foreign visitors. According to Japan’s Ministry of Health, unpaid tourist medical bills total tens of millions of yen annually, often left behind by travellers who either do not have travel insurance or underestimate the true cost of healthcare overseas.

This has prompted the Japanese government to consider new policies - including compulsory health insurance coverage for inbound tourists. While no final decision has been made about the specific measures Japan may introduce, it is a clear sign of how global travel risks are evolving and serves as a timely reminder for Australians about the financial reality of getting sick abroad.

A cautionary example hit home last year when an Australian mother faced nearly $100,000 in medical bills after a sudden illness while holidaying in Japan. Her story serves as a sobering reminder of just how costly international medical treatment can be. Even a brief hospital stay, surgery, or evacuation can escalate quickly, especially when a traveller is uninsured or underinsured.

Man and woman smiling to the camera
Tokyo street scene at night

Japan: A Favourite Destination 

Our own data reflects Japan’s popularity and its risk profile:

  • 387 medical cases were closed before the end of 2025 for Australians travelling in Japan - surpassing 2024’s total of 370 cases.
  • Japan consistently accounts for 17–30% of all Allianz travel insurance policies each quarter.
  • According to the Allianz Partners Travel Index 2025, Asia is the most popular destination for Australian travellers — particularly younger generations aged 18–29 — while 82% of Australians planning to travel this year say they intend to purchase travel insurance.

These figures are no coincidence. With over 70% of Australians planning to travel this year - and Asia leading the way - Japan’s combination of accessibility, culture, and safety makes it appealing. But with increased travel comes increased exposure to unexpected events.

The Cost of Getting It Wrong

Medical expenses overseas are not only rising – they can be unpredictable. In Japan, a hospital stay for a serious illness or accident can easily reach tens of thousands of dollars, while medical evacuations back to Australia can, in some cases, exceed $200,000 AUD.

Denica Saunders, Regional Head Operations Travel - APAC & Chief Operating Officer Allianz Partners Australia sees cases like this every day.

“My team deals with thousands of travellers every year who rely on travel insurance when something goes wrong overseas. No one plans to get sick or injured when they’re away, and one way to travel responsibly is by taking steps that not only safeguard your own wellbeing but also help ensure that essential support systems aren’t placed under unnecessary pressure.”

Our medical assistance data shows that medical incidents in Japan are often among the higher-cost claims in the Asia-Pacific region. Even routine illnesses such as food poisoning or common skiing injuries can require hospitalisation.

The good news? A comprehensive Allianz Travel Insurance policy can provide: 

  • Up to $20 million in overseas medical coverage per insured person (and up to $40 million for families)
  • 24/7 medical and emergency assistance, including support with hospital coordination and language services. 
  • Access to our global medical assistance network, helping travellers connect with appropriate support when they need it.

The Bigger Picture: A Global Shift in Travel Mindset

According to the Skift State of Travel 2025 Report, uncertainty is now one of the defining forces shaping global travel. Travellers are more aware of risk - from health to geopolitics - and they are seeking stability and reassurance when booking. We know that travellers aren’t just booking trips; they’re evaluating risk, planning contingencies, and choosing brands they trust.

This trend is especially visible in the Asia-Pacific region, which continues to drive global travel growth. The Skift State of Travel 2025 Report shows that Japan, in particular, has seen surging visitor numbers from Australia, South Korea, and Southeast Asia, as regional travel recovers strongly post-pandemic

Yet with this growth comes complexity - rising medical costs, evolving entry rules, and heightened traveller expectations for safety and care.

Australians’ Evolving Attitudes Toward Risk

The 2025 Allianz Partners Travel Index also highlights that travellers’ biggest concerns include getting sick (49%), running out of money (45%), and flight cancellations (43%).

Despite the cost-of-living pressures many Australians face, most recognise the value of protecting their trips. Even among those on tighter budgets, insurance remains one of the few non-negotiables. The research shows that Australians see travel insurance as a key safeguard for security and unforeseen events - particularly among travellers aged 50 and above.

Travel with Confidence

As Japan explores mandatory medical coverage for visitors, Australian travellers can be assured that Allianz Travel policies already meet these standards.

Whether you’re exploring Tokyo’s neon streets, skiing in Hokkaido, or relaxing in Kyoto’s onsens, our team is available 24/7 to support travellers from the moment you book to the moment you return home.

As the travel landscape evolves, staying informed and insured is the smartest way to see the world safely.

Japanese women in kimono on sreet

Final Word

Japan’s consideration of mandatory health insurance is more than just a policy change. It signals what may be ahead for global travel. In a world where travel risks are evolving, being informed and adequately insured is essential.

Stay tuned for the next edition of “Travel Check-In with Damien Arthur”, where we will explore more destinations, trends and insights to help Australians travel with confidence and care.

 

Disclaimer:
This article contains general information only and does not take into account your objectives, financial situation or needs. Travel insurance products are issued by AWP Australia Pty Ltd ABN 52 097 227 177 AFSL No. 245631, trading as Allianz Global Assistance (AGA). AGA issues and manages travel insurance as agent for Allianz Australia Insurance Limited ABN 15 000 122 850, AFSL 234708. Before making a decision, please consider the Product Disclosure Statement (PDS) and Target Market Determination (TMD) available at allianzpartners.com.au to ensure the product is appropriate for you. Terms, conditions, limits and exclusions apply. Cover levels, amounts and benefits are subject to the policy wording. AGA receives a commission which is a percentage of the premium you pay for a policy - ask us for further details prior to purchasing.