Travel is one of the few joys in life that cannot be replicated with anything else. Exploring different cultures, learning about traditions and the history of a region provides a scope for immense knowledge and understanding of the human race. India’s travel insurance market ensures that these experiences remain undeterred.
In recent years, India’s travel insurance market has reached new heights. There has been remarkable growth transforming this niche segment into a vital component of the travel industry. The surge in the Indian travel insurance market is owing to a massive increase in travel activities since after the COVID pandemic. Realising the urgent threat on life has inspired people to live and explore the world at their disposal.
Awareness about travel-related risks has also become prevalent, allowing travellers to understand what they need. Insurance providers have quickly adapted to the digital landscape and simplified the process of acquiring a domestic or international travel insurance. As more and more Indians embark on spectacular journeys, travel insurance has become an essential safeguard. It offers financial protection against unforeseen situations such as medical emergencies, trip cancellations and lost possessions.
Evolution of travel insurance in India
If history is any indication, travel insurance in India was a relatively obscure concept for a very long time. It was primarily opted for by frequent international travelers and business professionals. The policies were also generic, offering only basic coverage without catering to the diverse requirements of travelers to distant locations. The lack of awareness and limited accessibility were the key reasons for why domestic and international travel insurance did not have the reputation that it has today.
Globalisation hit humanity like a storm, and the landscape of international travel has changed. With visa accessibility and liberalisation in the Indian economy to facilitate travel, adventurists found new opportunities. Now, travelers prefer both solo trips and group trips to explore the world and discover themselves or experience cultures with those they love.
As the accessibility of international travel grew, so did the demand for comprehensive domestic and international travel insurance. Insurance providers responded by introducing a variety of tailor-made products that benefit the traveler’s profile. Now there are options for student insurance, individual travel insurance, senior citizen insurance, group travel insurance, and even plans that are customised for adventure enthusiasts.
With time, digitisation propagated the facilitation of such travel insurance plans. Before you had to purchase travel insurance from an authorised insurer in person after undergoing a long application process. The digital revolution made it simpler for insurers to offer international travel insurance, domestic travel insurance, group travel insurance, individual travel insurance, and other such options on their websites. Not only can you purchase suitable plans for your trip, but you can also learn more about the policies and how they can benefit you wherever you go.
Major players in the travel insurance market in India
As the landscape of travel insurance evolved in this country, so was there a shift in the key players in the travel insurance industry. While some established insurers have been around and serviced travelers for decades, in this evolving domestic and international travel insurance market in India, there are several major players who have made a mark. With a variety of insurance products catering to the diverse requirements of travelers, these insurers have emerged as leaders in India’s travel insurance market.
1. HDFC ERGO General Insurance Co Limited
It is a collaboration between HDFC Limited and ERGO International AG. The company offers comprehensive travel insurance plans for solo and group travelers with cashless hospitalisation and benefits against trip interruptions.
2. Bajaj Allians General Insurance Company Limited
Another collaborative venture in the travel insurance market is between Bajaj Finserv Limited and Alliance SE. The company provides travel insurance solutions offering benefits including emergency medical evacuations, trip limitations, etc.
3. Tata AIG General Insurance Company Limited
This association between Tata Group and the American International Group provides an array of travel insurance products to service the savvy and amateur travelers.
4. ICICI Lombard General Insurance Company Limited
Not a joint venture, but ICICI Lombard is a leading expert in travel insurance and general insurance policies in India. They provide innovative solutions to deal with medical expenses, trip delays, and loss of personal belongings.
5. SBI General Insurance Company Limited
This is a subsidiary of the State Bank of India. It offers travel insurance policies that include coverage against medical emergencies, trip cancellations, and home burglaries during your travel.
These companies have adapted to the changing dynamic of domestic and international travel. The proof of the reliability and trustworthiness lies in the claim settlement ratio, which they share as public information to help customers make informed decisions.
India’s international travel insurance market trends
In recent years, the Indian travel insurance market has witnessed a significant expansion. Back in 2023, the market was valued at approximately INR 7400 crores. Projected to reach INR 16700 crores by 2029 as a result of growing compound annual growth rate of 14.71% during the forecast period. In 2024, the market experienced an even bigger growth that has steadily increased to 17.4% now.
This robust growth is attributed to several factors, including the increase in outbound international travel plans, rising awareness of domestic and international travel insurance benefits, and the companies’ abilities to meet regulatory requirements. Mandating group and individual travel insurance coverage for certain destinations has also contributed largely to the upward trajectory in India’s travel insurance market trends.
Another important factor that has contributed to these changes in the market is the digitalisation and online accessibility. The augmentation of digital platforms has revolutionised the travel insurance industry in India by making it simpler to avail of domestic and international travel insurance plans.
Insurers are embracing technology with vigor and constantly developing user-friendly online portals and mobile applications to enable customers to compare policies, obtain quotes and purchase group and individual travel insurance plans with ease. This digital shift has enhanced customers’ convenience and also expanded the reach of insurance providers to previously untapped market niches.
Additionally, insurance providers have also been able to adapt to the changing needs of modern travelers. Providing customisable policies that cater to the specific needs of solo travelers and group travelers to address critical changes in travel plans has enabled them to expand their Clientele.
Not only provide coverage for generic travel, but they also have specialised plans for adventure sports, student travel, senior citizens, etc. This flexibility has made travel insurance an appealing option for a broader audience.
Impact of the COVID-19 pandemic on India’s travel insurance market
Back in 2019, when the COVID pandemic raised havoc globally. It interfered with people’s travel plans and influenced their travel behavior. After the coerced lockdown that lasted 2 years, keeping adventure seekers and vacationers confined in their homes, everyone was ready to burst free.
The COVID-19 pandemic, however, did bring to attention a very critical component about health. Travelers recognise the need for health-related coverage when traveling within India or internationally. Evacuation protocols during the pandemic also highlighted the need for financial support during cases of travel disruption. Insurance providers accommodated both critical requirements, which inadvertently led to the growth of the travel insurance market in India.
Conclusion
The travel insurance market in India has certainly undergone a transformative change since its early conception. As insurers understand the requirements of modern travelers and embrace the facilities at their disposal, the travel insurance market in India is expected to flourish even more.
Digital innovation, increase in travel activity, awareness of the risk factors during a trip, and the innate requirement of humankind to protect themselves financially on their journey has propelled this growth. The market is expected to mature as insurers adapt and provide personalised, comprehensive solutions for both domestic and international travelers.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.