Indians are buying more travel insurance and cancelling fewer overseas trips

International travellers are seeking broader insurance coverage as flight disruptions, geopolitical tensions and health-related concerns make overseas trips less predictable, according to industry experts.

The trend is also showing up in insurance purchases.

Travel insurance adoption among Indian travellers

rose 22% year-on-year in 2026, according to data from Policybazaar, indicating growing awareness of travel-related risks and the need for financial protection during overseas trips.

While uncertainties around travel have increased in recent years, travellers are not necessarily cancelling their plans. Instead, many are opting for more comprehensive insurance policies that offer protection against trip delays, cancellations, medical emergencies and other unforeseen events.

Data shared by travel protection provider Asego showed trip cancellation ratios declined to 6.8% this year from 8.3% a year earlier, suggesting travellers are continuing with planned journeys despite disruptions.

"Travellers are becoming more conscious of the risks associated with international travel and are seeking stronger protection against unforeseen events," said Dev Karvat, founder and CEO of Asego.

The trend is also reflected in policy purchases, with travellers opting for plans that include emergency medical assistance, evacuation support, trip cancellation benefits and compensation for travel delays, according to industry participants.

Parikshit Kohli, Sales Director, Travel at Allianz Partners India, a Business-to-Business-to-Consumer (B2B2C) company, said medical emergencies, flight cancellations, baggage delays and the loss of travel documents remain among the most common causes of unexpected expenses during overseas travel.

"International medical treatment can be extremely expensive. Similarly, flight disruptions and delayed baggage can lead to additional out-of-pocket expenses," Kohli said.

Industry experts say travellers are also paying closer attention to when they purchase travel insurance. Policies bought soon after booking flights or holiday packages may provide benefits that apply before departure, including coverage for trip cancellations arising from specified unforeseen circumstances.

Premiums are generally determined by factors such as destination, trip duration, traveller age, coverage limits and additional benefits selected.

The shift comes as international travel continues to remain strong despite periodic disruptions across global aviation networks. Rather than scaling back travel plans, consumers appear to be placing emphasis on financial protection and assistance services that can help them manage unexpected situations while abroad.