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India's International Travel Insurance Demand Soars with Post-Pandemic Travel Surge

  //travel-leisure.news-articles.net/content/2025/ .. emand-soars-with-post-pandemic-travel-surge.html
  Published in Travel and Leisure on Tuesday, December 16th 2025 at 2:34 GMT by The Hans India

Surge in Overseas Trips Spurs Growth in India’s International Travel Insurance Demand

The global pandemic dramatically curtailed international travel in 2020 and 2021, but the past two years have seen a rapid rebound. According to a recent article by The Hans India, the increasing frequency of outbound trips by Indians has created a corresponding surge in the demand for international travel insurance. The piece details how the Indian travel‑insurance market has responded to this shift, highlights key growth metrics, and explains the driving forces behind the trend.

1. A Post‑Pandemic Rebound in Overseas Travel

The article opens by noting that the number of Indian passports issued for travel abroad grew from 8.3 million in 2019 to 11.1 million in 2023 – a rise of roughly 33 %. While the pandemic halted flights for an entire year, the subsequent reopening of borders, the rollout of vaccination certificates, and the emergence of “travel bubbles” created a pent-up demand that has not yet fully evaporated. According to the International Air Transport Association (IATA), global passenger traffic recovered to 66 % of 2019 levels in 2023, and India’s share of outbound travelers has climbed from 1.7 % to 2.3 % of the world’s total.

The article cites data from the Ministry of Tourism, which reports that overseas trips by Indian tourists have hit a record 2.8 million in 2023, up 27 % from the previous year. Notably, more travelers are opting for “luxury” and “adventure” holidays – segments that typically demand higher levels of coverage.

2. Rising Demand for International Travel Insurance

With greater travel comes greater risk exposure. The article underscores how Indian travelers are increasingly aware of potential medical costs, trip cancellations, and baggage loss in foreign countries. In 2023, the International Travel Insurance Association (ITIA) India Chapter estimated that more than 1.5 million Indians purchased a travel‑insurance policy for overseas trips— a 45 % jump from 2022.

The article reports that insurers have responded by expanding their product lines. Traditional policies now include:

• Medical coverage: up to ₹20 million (≈US $250,000) for emergency treatment abroad.
• Trip cancellation/interruption: coverage for lost flight costs, hotel bookings, and pre‑planned activities.
• Baggage and personal items: replacement value coverage for lost, stolen or damaged luggage.
• Emergency assistance services: 24/7 global hotline, evacuation, and repatriation coverage.

According to the article, 68 % of new policies in 2023 incorporated “health‑plus” coverage, a package that includes COVID‑19 testing, quarantine assistance, and virtual medical consultations. The pandemic has also popularised “concierge” services that help travelers navigate local health protocols.

3. Growth in Premiums and Policyholders

The article cites industry reports that show a 32 % increase in average annual premiums for international travel‑insurance policies. The total premium volume in 2023 reached ₹1.4 billion (≈US $18 million), compared with ₹1.0 billion the previous year. In addition, the number of policyholders grew from 1.1 million to 1.5 million – a 36 % rise.

The article attributes the rise in premium volume not only to more travelers but also to higher average coverage limits. Many insurers now offer “premium” plans that include up to ₹50 million (≈US $625,000) of medical coverage and up to ₹30 million (≈US $375,000) of loss‑of‑trip coverage. These premium products cater to business travelers and high‑net‑worth individuals, who form a rapidly growing segment of the market.

4. Technological Adoption and Digital Channels

A significant portion of the article focuses on how digitalization has accelerated policy distribution. The use of online portals, mobile apps, and chatbot‑based underwriting has reduced the time required to purchase a policy from weeks to minutes. The article cites a survey by the Insurance Regulatory and Development Authority of India (IRDAI), which found that 62 % of recent policy purchases were completed online.

Insurtech startups such as PolicyBazaar, CoverBox, and InsureHub have been pivotal in this transformation. They provide instant quotes, transparent pricing, and AI‑powered risk assessment tools. These platforms also offer bundle deals—travel insurance combined with flight or hotel bookings—making the purchase more convenient for the modern traveler.

5. Regulatory and Market Dynamics

The article explains that regulatory changes have further encouraged the growth of international travel insurance. In 2022, the IRDAI introduced new guidelines that require insurers to offer a baseline “essential” coverage of at least ₹5 million for medical emergencies abroad. This ensures that even low‑budget travelers receive adequate protection.

The competition between large multinational insurers (e.g., Allianz, AIG, and AXA) and local Indian players (e.g., LIC, ICICI Lombard, and Bajaj Allianz) has driven product innovation. The article notes that the market share of local insurers rose from 37 % to 42 % in the last two years, largely due to localized product design and pricing strategies.

6. Challenges and Opportunities Ahead

Despite the robust growth, the article acknowledges certain challenges:

• Fraud and under‑insurance: Some travelers undervalue medical coverage, especially in high‑risk countries. Insurers must continue to educate customers about realistic risk assessments.
• Re‑entry protocols: Frequent changes to entry requirements (vaccination certificates, quarantine rules) can affect policy validity and customer satisfaction.
• Climate‑related risks: Natural disasters—such as cyclones in the Indian Ocean—have heightened the need for comprehensive coverage that includes extreme weather events.

Opportunities for insurers lie in offering “smart” policies that dynamically adjust coverage based on real‑time risk analytics. The article also highlights the potential of “micro‑insurance” for low‑budget travelers and “multi‑destination” policies that allow coverage for multiple trips within a year.

7. Outlook

In closing, The Hans India article projects that the international travel‑insurance market will continue to expand, driven by the ongoing rise in overseas travel, increased consumer awareness, and the continued adoption of digital channels. Analysts predict a compound annual growth rate (CAGR) of 8–10 % over the next five years. The article advises both insurers and policyholders to stay vigilant: with global travel re‑opening in an unpredictable world, robust insurance coverage is more vital than ever.

Key Takeaways

The article offers a comprehensive look at how India’s resurgent global travel is reshaping the travel‑insurance landscape, reflecting a broader trend toward more informed, digitally‑enabled risk management among Indian travelers.