Travel Insurance Sees Surge in Demand Post-Pandemic
What was once considered optional is now becoming essential for Indian travelers heading abroad. The uptake of overseas travel insurance has nearly doubled in the past six years, driven by rising medical costs and increased awareness of travel disruptions in the wake of the pandemic. According to the Insurance Regulatory and Development Authority of India (Irdai), nearly 97 lakh lives were covered under overseas travel insurance policies in the fiscal year 2024-25, reflecting a significant shift in how Indians approach international travel.
Surge in Insurance Coverage
The latest Irdai report reveals that 96.7 lakh individuals were insured under 27.9 lakh overseas travel insurance policies during 2024-25. The gross premium income from this sector reached Rs 1,267 crore, marking a remarkable 91% increase compared to the 50.5 lakh lives covered in 2018-19. During the same period, the gross premium income rose by 67.4%, up from Rs 757 crore in FY19. This growth indicates a growing recognition among travelers of the importance of being insured while traveling abroad, especially as medical treatment costs can be significantly higher overseas.
The market share of private general insurers in this segment has also seen an increase, rising from 81% in FY19 to 84% in FY25. This trend underscores the evolving landscape of travel insurance in India, where more travelers are opting for coverage to safeguard against unforeseen circumstances.
Changing Traveler Demographics
Meet Kapadia, head of travel insurance at Policybazaar, notes that the pandemic has catalyzed a shift in how Indians plan their international trips. He emphasizes that travelers are now more aware of the risks involved. Medical expenses abroad can be five to eight times higher than in India, even for non-critical care. Additionally, recent disruptions in flight schedules have highlighted the financial implications of delays and missed connections, making insurance coverage more appealing.
Dev Karvat, founder and CEO of Asego, points out that leisure travelers constitute the largest segment seeking overseas medical insurance. However, business travelers, students, and long-term expatriates are also increasingly purchasing these policies. Notably, senior citizens represent a growing demographic, as more older Indians travel abroad, driving demand for specialized medical coverage and reliable emergency assistance.
Growth in Outbound Travel
The India Tourism Statistics report from the Ministry of Tourism indicates a 14.7% increase in outbound departures, rising from 2.7 crore in 2019 to over 3 crore in 2024. This surge in international travel has contributed to the steady increase in overseas travel insurance uptake, even though it is not universally required. Some destinations, such as Schengen countries, mandate insurance as part of their visa requirements.
Ravi Gosain, president of the Indian Association of Tour Operators, attributes this growth in overseas travel insurance to the robust revival of outbound travel from India. As more Indians venture abroad, the importance of travel insurance becomes increasingly apparent, ensuring that travelers are protected against potential risks during their journeys.
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