India Travel Insurance Market: Current Analysis and Forecast (2024-2032)
Emphasis on Coverage Type (Single Trip Insurance, Multi-Trip Insurance, and Long-Stay Insurance); Destination Type (Domestic Travel and International Travel); Distribution Channel (Online and Offline); Region
India Travel Insurance Market Size & Forecast
The India Travel Insurance market was valued at USD million in 2023 and is expected to grow at a strong CAGR of around 13.7% during the forecast period (2024-2032) owing to the increasing travel activity, rising awareness and education in the nation.
India Travel Insurance Market Analysis
The travel insurance market in India has shown great potential growth in demand due to rising numbers of both domestic and international tourists. Increased awareness of the importance of traveling and the emergence of new groups of consumers who have higher disposable incomes also dictate great attention to travel insurance. The market here comprises a wide product spectrum to meet different client needs such as single business travelers, families, students, and corporate organizations.
Recent Developments in the Market
- At the 21st ASEAN-India Summit, Prime Minister Narendra Modi proposed celebrating 2025 as the “ASEAN-India Year of Tourism,” highlighting the importance of bolstering tourism and cultural exchange between ASEAN nations and India. To support this initiative, India has designated USD 5 million for joint tourism projects and promotional activities.
- According to a report by ICICI Lombard titled ‘Research on Travel Behaviours 2023’, in a country where the total insurance penetration is only about 4%, the Lombard report highlighted that 92% of this cohort were likely to purchase travel insurance for their next vacation.
India Travel Insurance Market Trends
This section discusses the key market trends that are influencing the various segments of the pet perfume market, as identified by our team of research experts.
The International Travel Segment Transforming Industry
International travel insurance has emerged as a large segment of the travel insurance market in India due to the rise in the number of Indians traveling for business, tourism, and education purposes across the world. With the easing of the COVID-19 restrictions, there is an increased focus on travel insurance and more travelers who would like to be protected in situations like medical evacuation, and trip cancellation among others. Other related factors that have boosted this growth have been the online policy purchase channel also known as the new buying channel and the emergence of online selling platforms for insurance policies enables travelers to compare and select insurance plans relevant to their needs at their personal convenience time. Further, shifting consumer trends leading to adventurous displacements, trips, and longer stays are also putting pressure on exigent insurance solutions. Therefore, it was found that the international travel segment has high potential growth rates in the future, considering the overall development of the travel industry and the increased interest of consumers in risk management procedures.
West India is Expected to Grow with Significant CAGR During Forecast Period
The West Indian market for travel insurance is observed to have significant prevalence due to factors such as traveling propensity, tourism support framework, and escalating realization of travel risks. Large cities such as Mumbai and Pune have emerged as major centers of domestic and international connectivity because of the high number of people here who are focused on leisure or business travel. The availability of attractive travel destinations in the region and adventures such as beaches, and cultural and natural tourist attractions compel more people to take up policies against the risks of events they would wish to prevent. Also, the post COVID-19 awareness regarding travel insurance has increased significantly among travelers in West India, owing to the pandemic. Consequently, insurers are launching products that are specially designed to meet the demands of this area’s travelers, thus entrusting West India with a more powerful position as a part of the overall Indian travel insurance market. As the segment continues to return to the previous level, this segment is further believed to bolster its strength based on escalating urbanization and increasing the middle-income populace.
India Travel Insurance Industry Overview
The India Travel Insurance market is competitive and fragmented, with the presence of several country market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market include Tata AIG General Insurance Company Limited; HDFC ERGO General Insurance Company Limited; Bajaj Allianz General Insurance Co. Ltd; SBI General Insurance; Reliance General Insurance Company Limited; Royal Sundaram General Insurance Co. Limited; Cholamandalam MS General Insurance Company Ltd.; Acko Group; ICICI Lombard General Insurance Company Ltd.; Niva Bupa.
India Travel Insurance Market News
- In October 2024, ICICI Lombard, India’s leading private general insurer, unveiled TripSecure+, an innovative AI-powered travel insurance solution that allows user to tailor their policy to fit their unique travel needs. They can easily adjust their coverage to include or exclude specific protection, ensuring that their policy works for their specific trip, whether it’s a relaxing beach getaway or a rugged outdoor adventure.
- In July 2024, Karnataka Bank announced its strategic partnership with ICICI Lombard General Insurance Company. Through this tie-up, Karnataka Bank customers will have access to a wide range of comprehensive insurance products and services provided by ICICI Lombard. These offerings include health insurance, motor insurance, travel insurance, home insurance, and more, catering to the diverse insurance needs of individuals and businesses alike.
- In June 2024, INSILLION, a leading Insurtech SaaS platform, announced a significant partnership that will transform the way travel insurance is delivered. Royal Sundaram General Insurance (RSGI), a prominent Property & Casualty insurer based in India, has integrated with the Indian Railway Catering and Tourism Corporation (IRCTC) to enable embedded Group Personal Accident (GPA) policies to be offered alongside e-ticket purchases through INSILLION’s API platform.
India Travel Insurance Market Report Coverage
Reasons to buy this report:
- The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
- The report presents a quick review of overall industry performance at one glance.
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
- The study comprehensively covers the market across different segments.
- Deep dive regional level analysis of the industry.
Customization Options:
The India travel insurance market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.
Table of Contents
Research Methodology for the India Travel Insurance Market Analysis (2024-2032)
Analyzing the historical market, estimating the current market, and forecasting the future market of the India travel insurance market were the three major steps undertaken to create and analyze the adoption of India travel insurance in major states. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the India travel insurance market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertaining to detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
A detailed secondary study was conducted to obtain the historical market size of the India travel insurance market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the India travel insurance market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as coverage type, destination type, distribution channel, and regions. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the India travel insurance market. Further, we conducted factor analysis using dependent and independent variables such as the coverage type, destination type, distribution channel, and regions of the India Travel Insurance market. A thorough analysis was conducted of demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in India travel insurance market sector across the country
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the India Travel Insurance market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to varied factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast 2032 for different segments and sub-segments across the major markets in India. The research methodology adopted to estimate the market size encompasses:
- The industry’s market size, in terms of revenue (USD) and the adoption rate of the India Travel Insurance market across the major markets domestically
- All percentage shares, splits, and breakdowns of market segments and sub-segments
- Key players in the India Travel Insurance market regarding products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the India travel insurance market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of the coverage type, destination type, distribution channel, and regions in the India travel insurance market.
The main objective of the India Travel Insurance Market Study
The current & future market trends of the India Travel Insurance market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a state level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
- Analyze the current and forecast market size of the India travel insurance market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
- Segments in the study include areas of coverage type, destination type, distribution channel, and regions.
- Define and analyze the regulatory framework for the India travel insurance
- Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
- Analyze the current and forecast market size of the India travel insurance market for the major region.
- Major Regions in India studied in the report include North India, South India, East India, and West India.
- Company profile of the India travel insurance market and the growth strategies adopted by the market players to sustain in the fast-growing market.
- Deep dive state-level analysis of the industry
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