India travel insurance market is set to witness significant expansion due to the rise in tourism, convenient options for online travel bookings, and a comprehensive suite of packages for different types of travelers.
BlueWeave Consulting, a market research firm, in its recent study estimated India Travel Insurance Market size at USD 85.6 million in 2021. And BlueWeave forecasts India Travel Insurance market to grow at a robust CAGR of 19.8% during the forecast period (2022–2028) to reach a value of USD 281.4 million by 2028, as deepening penetration of mobile internet enables travelers to choose convenient options for online travel bookings, and a comprehensive suite of packages for different types of travelers. However, a lack of understanding regarding insurance policies may hinder the market growth.
India Travel Insurance Market – Technology Advancements
Convenient choices for purchasing travel insurance through online comparison-shopping websites such as direct airline sites and online travel agents (OTAs) are driving the expansion of the travel insurance industry. Insurers are projected to strengthen existing travel insurance distribution networks with the help of innovative technologies, such as geolocation, application program interface (API), artificial intelligence (AI), data analytics, and global positioning system (GPS). Hence, the increasing use of innovative digital technologies could boost the growth of the travel insurance market in India.
Booming Tourism Sector to Drive Demand for Travel Insurance
The main driver of the travel insurance business is the increase in tourism. When traveling to a foreign country, a majority of Indian travelers seek abroad travel insurance in India, implying that there is a huge market for travel insurance in India. Not just among international tourists, but also among domestic travelers, there has been a significant increase. According to recent estimates, 30 million Indians travel within India each year, and they also seek domestic travel insurance. Travel has become a part of academic, business, and personal life as people have become more mobile, exposing people to travel-related contingencies. Hence, an increasing number of travelers are expected to drive the demand travel insurance products and services in India.
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Segmental Coverage
India Travel Insurance Market – By Insurance Coverage
Based on insurance coverage, the India travel insurance market is segmented into three categories: single trip, annual multi-trip, and long stay. Due to the development in business travel combined with rising disposable income, single trip travel insurance accounts for a substantial market share among them. However, more accessible and less expensive travel has made it easier for various families and fully autonomous travelers to take multiple trips in a year, resulting in a significant increase in annual multi-trip travel insurance.
Impact of Covid-19 on India Travel Insurance Market
Due to government-imposed severe lockdown measures, the COVID-19 pandemic slowed the growth of the travel insurance market in the first half of 2020. Due to the enormous worldwide health, social, and economic disaster created by the COVID-19 pandemic, travel and tourism are among the most affected businesses. After the gradual relaxation of the mandated lockdowns, the market gained traction in the second half of 2020. There will be an increase in the number of travelers in the coming years as a result of various industry participants providing coverage for COVID-19 related medical expenses.
Competitive Landscape
IFFCO Tokio Travel Insurance, TATA AIG, Apollo Munich (now, HDFC Ergo), Bharti AXA, Bajaj Allianz, SBI General Insurance, Future Generali, Royal Sundaram, HDFC Ergo, ICICI Lombard, Reliance, and Religare (now, Care Insurance) are the leading participants in India travel insurance market. Major travel insurance players in India are increasing their investments in developing new insurance plans to expand their customer base and geographic reach.
By Category
- Domestic
- International
By Type
- Single-Trip Travel Insurance
- Multi-Trip Travel Insurance
- Extended Travel Insurance
By Channel
- Insurance Companies
- Insurance Intermediaries
- Banks
- Insurance Aggregators
- Insurance Brokers
By End User
- Senior Citizens
- Health Travelers
- Education Travelers
- Business Travelers
- Family Travelers
- Others
By Coverage
- Medical Expense
- Trip Delay
- Trip Cancellation
- Property Damage
- Theft/Loss
- Others
