Travel insurance is not mandatory for entering New Zealand. However, it is highly recommended, especially because healthcare costs for visitors can be significant, and travel insurance can provide coverage for unexpected medical expenses, trip cancellations, lost luggage, and more.

New Zealand does have a public healthcare system, and under a reciprocal agreement, Australian travelers can access certain emergency healthcare services. However, this does not cover GP visits, prescriptions, or medical repatriation, which can be very expensive. Additionally, New Zealand's Accident Compensation Corporation (ACC) covers medical costs for accidents but not for illness, loss of income, or trip disruptions, so insurance is strongly advised for comprehensive protection.