India Travel Insurance Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

India Travel Insurance Market has generated a revenue of USD 65 million in the current year and is poised to achieve a CAGR of 12% for the forecast period. Travel insurance offers financial protection for expenses or losses incurred due to unanticipated events while domestic or overseas travel. It usually covers the costs of lost or stolen belongings, emergency medical care, accidental death, and trip cancellation and interruption. It takes into impact from the day of travel until the insured reaches back home. Currently, various companies are offering travel insurance with 24/7 emergency services, such as replacing lost passports, cash wire assistance, and re-booking canceled flights. They are also presenting customization options depending on the geographical location and the requirements of the insured individuals.

The travel insurance market in India accounts for less than 1% of the total travel insurance industry worldwide. As individuals are becoming more flexible, travel has become a part of intellectual, business, and personal life. The major objective of travel insurance is to offer hassle-free travel to tourists and to reduce the risks to a minimum. Consequently, it is always a better option to buy a travel insurance plan to diminish the risks associated with traveling. Acquiring a travel insurance policy provides cover against medical and non-medical travel-related contingencies such as emergency medical conditions, loss of tickets & passports, trip cancellation, curtailment & interruption, loss/delay of baggage, etc.

The policy also includes the financial loss that may incur while traveling domestically or internationally, which is further anticipated to boost the development of the travel insurance market in the country. Besides, increasing natural calamities coupled with medical emergencies are some of the common problems registered while traveling, thereby pushing the demand for travel insurance. Nevertheless, the lack of awareness about insurance policies might act as a major obstacle to the growth of the Indian travel insurance market during the forecast period.

India Travel Insurance Market Trends

Boost in tourism post pandemic

The tourism sector in India is a significant component of India’s growth and economy. In the last decade, the global tourism sector has seen steady development. According to the World Tourism Organization, international visitor arrivals stood at 12 million in 2021. The share of tourism in India’s GDP was 9.2% in 2020. Tourism supported more than 50 million jobs. The tourism sector generated 8.1 % of India’s total employment. By 2027, some studies have indicated that tourism in India is expected to grow approximately 7% and is expected to be a $450 billion industry. Expanded disposable income, package holidays, broad media coverage of various holiday kinds, and simple internet travel reservations have contributed to the tourism industry's expansion.

As the tourism industry grows, more cases of lost baggage, crucial papers, medical issues, and natural disasters are stated. A rising number of people are purchasing travel insurance to reduce the possibility of such occurrences. Consequently, the tourist industry's expansion is propelling the travel insurance market forward.

Digitalization driving market growth

In the months gone by, insurers have started to realize the fact that the conventional approach of selling insurance products to consumers will no longer be near enough for the insurers who wish to stay forward of their competitors. The basis of the entire insurance industry is based on offering products and services to the consumers that help them stay protected against loss because of an unfortunate event.

And, in 2022, this will continue to remain an essential element of what insurers do, we will also witness a technology-driven shift in the way insurance is sold. The insurers will concentrate more on selling insurance products through a telemedical process which is the need of the hour. This will be balanced by the e-KYC process for completing the verification process of the consumers to buy a health and term insurance plan. During the COVID-19 pandemic, the digital shift toward selling insurance policies has gained considerable traction and is sure to continue in the years to come. Buying insurance through digital channels reduces the buying process and gives consumers a plethora of options to select the right insurance product as per their choice and requirement.

India Travel Insurance Market Competitor Analysis

The report includes major key players operating in the India Travel Insurance market, their product portfolio, key financials, and developments. The market is changing with many technological advancements through product innovation and process automation.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support