What's Happening?
A recent report by ICICI Lombard General Insurance, titled the WanderSafe Report 2025, reveals that six in ten Indian travelers are now actively seeking travel insurance, a notable increase from the 54% before the COVID-19 pandemic. The report indicates
that while nine out of ten Indians are aware of travel insurance, there remains a gap in detailed understanding and ownership intent. The report highlights that a significant portion of travelers, particularly those with minimal interest in travel coverage, cite a lack of awareness, cost concerns, and perceived lack of benefit as reasons for not purchasing insurance. The report also identifies the key protections travelers associate with insurance, such as accidental death, hospitalization, flight cancellations, baggage loss, and coverage for adventure activities. Additionally, the report notes that top claims include medical expenses, trip cancellations, delays, baggage loss, and loss of travel documents, with common claim rejections due to policy exclusions, deductibles, or unmet conditions.
Why It's Important?
The growing interest in travel insurance among Indian travelers reflects a broader trend of increased awareness and prioritization of safety and risk management in travel planning. This shift is significant for the travel insurance industry, as it suggests a potential increase in demand for comprehensive travel insurance products. The report's findings also highlight the importance of addressing consumer concerns about cost and perceived benefits to further increase adoption rates. For the travel industry, this trend could lead to more partnerships between travel agencies and insurance providers to offer bundled packages that include insurance. Additionally, the generational differences in travel preferences, with younger travelers showing interest in long-haul destinations, could influence the development of targeted insurance products that cater to specific travel patterns and preferences.
What's Next?
As awareness and interest in travel insurance continue to grow, insurance companies may focus on enhancing consumer education and simplifying the purchasing process to address the barriers identified in the report. This could involve developing more user-friendly digital platforms and offering personalized insurance solutions that cater to the diverse needs of travelers. Additionally, the travel industry may see an increase in collaborations between travel agencies and insurance providers to offer integrated travel solutions that include insurance as a standard component. The report's findings could also prompt regulatory bodies to review and update policies to ensure that travel insurance products are transparent and accessible to all travelers.
