The India travel insurance market was valued at $153.86 million in 2023 and is projected to reach $456.48 million by 2033, growing at a CAGR of 11.3% from 2024 to 2033.
Travel insurance is a form of insurance that protects against financial losses caused by travel, and it may be a helpful safeguard for both local and foreign trips. Travel insurance can be purchased online, from the tour operator, or from other sources such as insurance providers. Travel insurance is primarily divided into the following categories: medical, accidental death, baggage and personal goods, rental property and automobile, trip cancellation or interruption, and medical. Coverage often includes 24/7 emergency services, such as replacing lost passports, cash wire assistance, and rebooking canceled flights.
The India travel insurance market is currently experiencing significant growth, primarily driven by the rise in the adoption of travel insurance services among individuals, owing to the rise in awareness about insurance policies among individuals. However, after the COVID-19 situation, there was an increase in travel insurance customers, which led to a surge in the burden of work and a decrease in the quality of claim processing & settlement services, thereby driving the growth of the market. The increasing investments by public and private companies further fuel the growth of the India travel insurance market.
However, the enforcement of strong rules by banks and financial institutions for providing insurance services is certainly restraining the adoption of travel insurance solutions across India. Strong rules and restrictions implemented by several banks and financial service providers to offer travel insurance services are further expected to restrict the growth of the market across India. The process of insurance services can be complicated since it may need to operate with several platforms, databases, and technologies, which, in turn, are expected to hinder the market growth. However, technological advancements in insurance services are anticipated to emerge as a lucrative opportunity for the growth of the India travel insurance market.
On the basis of insurance cover, the single-trip travel insurance segment is the highest-growing segment. Single-trip travel insurance policies are often more affordable than annual or multi-trip policies, making them an effective option for occasional travelers. With the rise of online insurance platforms, purchasing single-trip travel insurance has become more convenient and accessible. These factors are expected to propel the growth of single-trip travel insurance segment growth in the India travel insurance market.
Segment Review
The India travel insurance market is segmented on the basis of insurance cover, distribution channel, end user, and mode. On the basis of insurance cover, the market is segmented into single-trip travel insurance, annual multi-trip travel insurance, and long-stay travel insurance. As per distribution channel, the market is divided into insurance intermediaries, insurance companies, banks, insurance brokers, and insurance aggregators. According to end user, the market is divided into senior citizens, education travelers, business travelers, family travelers, and others. Depending on mode, the market is segmented into online and offline.
By Insurance Cover
Single-Trip Travel Insurance segment is projected as one of the most lucrative segments.
Competition Analysis
The report analyzes the profiles of key players operating in the India travel insurance market such as ICICI Lombard General Insurance Company Limited, Bajaj Allianz General Insurance Company Limited, HDFC ERGO General Insurance Company Limited, TATA AIG GENERAL INSURANCE COMPANY LIMITED, Care Health Insurance Ltd., SBI General Insurance Company Limited, Go Digit General Insurance Limited, Universal Sompo General Insurance Company Limited, Niva Bupa Health Insurance Company Limited, and ManipalCigna Health Insurance Company Limited. These players have adopted various strategies to increase their market penetration and strengthen their position in the India travel insurance market.
By Distribution Channel
Insurance Intermediaries segment is projected as one of the most lucrative segments.
Recent Product Launch in the India Travel Insurance Market
In February 2024, sure launched Anywhere Insurance to liberate the insurance industry from the control of incumbent rate service organizations (RSOs) and legacy insurance product filings. Anywhere is a simple solution for complex insurance products. Anywhere provides first-of-its-kind insurance programs designed for carriers, MGAs, and brands that want unique, customizable, go-to-market-ready insurance products paired with end-to-end SaaS technology and APIs that can scale to hundreds of millions of customers.
In January 2024, online travel booking platform EaseMyTrip.com launched its subsidiary EaseMyTrip Insurance Broker Pvt Ltd. The company termed it a "strategic move" to diversify its service portfolio and tap into the insurance market by creating a specialized product to solve customer needs.
By End User
Family Travelers segment is projected as one of the most lucrative segments.
Top Impacting Factors
Rise in adoption of travel insurance services among individuals
The rise in the adoption of travel insurance services among individuals is indeed a significant driver of growth in the India travel insurance market, owing to the rise in awareness about insurance policies among individuals. Consequently, travel insurance services are increasingly adopted by insurance companies, as they offer various value-added services along with processing of the policy and scrutinizing the helpline facilities for knowledge sharing. This subsequently fuels the growth of the India travel insurance market. Moreover, the rise in demand for travel insurance expertise and the necessary infrastructure to handle policy enrollment has driven the market demand in this sector. These aforementioned factors encouraged several private and public companies to adopt various strategies to expand their product portfolio. For instance, in February 2024, sure launched Anywhere Insurance to liberate the insurance industry from the control of incumbent rate service organizations (RSOs) and legacy insurance product filings. Anywhere is a simple solution for complex insurance products. Anywhere provides first-of-its-kind insurance programs designed for carriers, MGAs, and brands that want unique, customizable, go-to-market-ready insurance products paired with end-to-end SaaS technology and APIs that can scale to hundreds of millions of customers. Therefore, such development strategies contribute in driving the growth of market in India.
Enforcement of strong rules by banks and financial institutions for providing insurance services
Strong rules and restrictions implemented by several banks and financial service providers to offer travel insurance services are further expected to restrict the growth of the market across India travel insurance providers have been demanding several documents to deliver lending services, which include insurer bank account statement, credit score document, historical information of property, and no criminal cases document. These regulations often lead to concerns about consumer protection, market stability, and financial reliability. While regulations aim to safeguard consumer interests and maintain financial integrity, it may unintentionally create barriers to entry of new insurance providers, restrict competition, and hinder innovation in the insurance industry. Furthermore, in order to access a larger client base, many insurers rely on joint ventures with banks and financial intermediaries, or the banking industry. However, stringent regulatory requirements may also limit the variety of products banks can offer, which hampers the growth of the India travel insurance market.
Technological advancements in travel insurance services
The surge in technological advancements in almost every sector, including travel insurance services is expected to create numerous opportunities for market growth. In addition, the rise in demand for automation in claim processing and policy administration, and other technologies such as artificial intelligence (AI), data analytics, and machine learning (ML) contributed to the driving growth of the market. Moreover, traditional insurance services have been deployed for several decades; however, increased adoption of advanced technologies, such as the Internet of Things (IoT) and robotics process automation, has led to the growth of the travel insurance industry in India. Technological innovations in India are expected to create several opportunities for the India travel insurance market. For instance, in May 2024, SBI General Insurance collaborated with Jana Small Finance Bank to facilitate the sale of non-life insurance products. Under this strategic agreement, SBI General Insurance provides Jana Small Finance Bank customers with a comprehensive variety of general insurance products. Hence, such numerous strategies are further expected to proliferate lucrative opportunities for the India travel insurance market.
Key Benefits for Stakeholders
- The study provides an in-depth India travel insurance market analysis along with the current trends and future estimations to elucidate the imminent investment pockets.
- Information about key drivers, restrains, and opportunities and their impact analysis on the India travel insurance market size is provided in the report.
- The Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the India travel insurance industry.
- The quantitative analysis of the global India travel insurance market for the period 2022–2032 is provided to determine the India travel insurance market potential.
India Travel Insurance Market Report Highlights
| Aspects | Details |
 By Insurance Cover |
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 By Distribution Channel |
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 By End User |
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 By Mode |
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 Key Market Players | TATA AIG GENERAL INSURANCE COMPANY LIMITED, HDFC ERGO General Insurance Company Limited, Bajaj Allianz General Insurance Company Limited, ICICI Lombard General Insurance Company Limited, SBI General Insurance Company Limited, Care Health Insurance Ltd., ManipalCigna Health Insurance Company Limited, Go Digit General Insurance Limited, Universal Sompo General Insurance Company Limited, Niva Bupa Health Insurance Company Limited |
Analyst Review
The India travel insurance market is characterized by intense competition, which can be attributed to the strong presence of established vendors. The insurance industry continues to evolve as a result of the widespread use of digital technology, which promotes consumer interaction, product innovation, and operational effectiveness. Insurance companies use digital platforms such as IoT, and data analytics to improve consumer experiences, distribution networks, and underwriting procedures. With the growth of urbanization, there is an increasing demand for intelligent insurance systems that can improve business operations. Overall, the India travel insurance market is driven by the need for intelligent and automated systems that can process and analyse vast amounts of data in real time, enabling organizations to make informed decisions and take actions based on data-driven insights. Furthermore, the competitive landscape within the market is anticipated to become even more intense as a consequence of technological advancements, product expansions, and various strategies employed by key vendors.
The India travel insurance market is anticipated to grow significantly during the forecast period. There are a few major trends in the India travel insurance market such as the growing adoption of cloud-based insurance platforms and surging emphasis on real-time information. These trends are positively impacting the overall market growth.
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