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India Travel Insurance Market

India Travel Insurance Market

India Travel Insurance Market, By Category (Domestic, International); By Type (Single-Trip Travel Insurance, Multi-Trip Travel Insurance, Extended Travel Insurance); By Channel (Insurance Companies, Insurance Intermediaries, Banks, Insurance Aggregators, Insurance Brokers); By End User (Senior Citizens, Health Travelers, Education Traveler, Business Travelers, Family Travelers, Others); By Coverage (Medical Expense, Trip Delay, Trip Cancellation, Property Damage, Theft/Loss, Others), Trend Analysis, Competitive Market Share and Forecast, 2018–2028

  • Published Date: September 2022
  • Report ID: BWC22355
  • Available Format: PDF
  • Page: 114

Report Overview

India travel insurance market is flourishing due to growing consumer awareness to offset risks of increasing number of aircraft disruptions, baggage and important papers loss, and medical emergencies.

India Travel Insurance Market – Industry Trends & Forecast Report 2028

India travel insurance market size was worth USD 85.6 million in 2021 and is expected to more than triple to reach USD 281.4 million by 2028, growing at a robust CAGR of 19.8% during the forecast period (2022–2028). The booming travel industry in India is a major growth driver for the market. Though India travel insurance industry accounts for less than 1% of the global travel insurance industry, it is set to grow due to Indian travelers’ increasing awareness about the importance of insurance to cover risks while traveling. 

India Travel Insurance Market – Overview

Travel insurance is designed to safeguard customers from potential dangers and financial losses while on the road. The risks range from little annoyances like missing airplane connections and delayed luggage to more serious issues, such as injuries or serious illnesses.Travel insurance can cover risks of medical expenditures that are not covered by their usual health insurance while they are on the road. These health insurance policies frequently do not provide full coverage in foreign countries, and some plans, such as Medicare, do not provide any coverage at all. In addition to ordinary health insurance, travel insurance can help supplement medical expenditures if an insured person is injured or sick before or during their vacation.

India Travel Insurance Market Forecast and Industry Trends

Growth Drivers

Globalization and Convenience of Choosing Travel Insurance Products Online

The travel business has benefited from increased globalization. This, in turn, is likely to be a major driver of the travel insurance market's expansion. Travel insurance sales are boosted by the aging population, especially for overseas trips, which enhances the travel insurance industry's earnings. Convenient choices for purchasing travel insurance through online comparison-shopping websites, such as direct airline sites and online travel agents (OTAs), are driving the expansion of the travel insurance market.

Booming Tourism Industry

In India, the tourism business has grown steadily during the previous decade. Many locations throughout the world are transforming into travel hubs and rising in popularity among millennials. Increased package vacations, disposable income, widespread media coverage of various vacation styles, and easy online travel bookings have all aided the tourism industry's growth. Furthermore, many students are relocating to other countries to pursue further education and programs. In addition, some institutions and colleges provide scholarship programs that draw students across the world. As the tourist sector grows, more examples of important documents being misplaced, lost luggage, natural disasters, and medical emergencies are reported.

Favorable Regulations and Rules for Travel Insurance

Each country has its own set of rules and restrictions for tourists of various nationalities when it comes to VISA policy. Governments, on the other hand, are increasingly forcing passengers to pay travel insurance in order to obtain a VISA. In countries including France, the United States, Luxembourg, Belgium, Finland, Norway, and Poland, travel health insurance is compulsory. This clause exists to ensure that visitors are adequately covered in the event of medical crises, due to the high medical expenditures and hospitalization bills in visiting countries. Passengers with travel health insurance are treated medically until they return home for further treatment.

India Travel Insurance Market - Increasing Demand

In 2015–16, a total of 22.39 lakh policies were issued, covering 39.29 lakh people; meanwhile, in 2014–15, the non-life insurance sector in India issued 22.62 lakh overseas travel insurance policies, covering 39.29 lakh people. Previously, less than 20% of international travelers from India had travel insurance, but attitudes toward purchasing travel insurance have recently changed dramatically. The travel insurance market in India grew by double digits in 2015, both in terms of international and domestic travel insurance.

Restraints

High Cost of Acquiring Travel Insurance Products

One of the most significant disadvantages is the cost of acquiring travel insurance. A travel insurance package can be extremely expensive because it covers so many things. Many people, however, consider it a waste of money and time because they may never use it. Many people believe that the benefit of peace of mind surpasses the expenditure. Furthermore, persons without insurance may be obliged to spend a significant amount of money for unforeseen expenses, such as medical treatment for illnesses and injuries. Most travel insurance policies only cover unexpected medical expenses incurred while on vacation, not pre-existing medical issues. Those that do are frequently accompanied by a considerable price increase.

Impact of COVID-19 on India Travel Insurance Market

The COVID-19 pandemic brought the globe to a halt, with unpredictable and unexpected consequences affecting the global economy, people's lives, communities, and livelihoods, as well as an all-time high chance of layoffs and worldwide recession. Furthermore, as a result of rigorous travel restrictions and quarantine legislation around the world, the travel and tourism industry has seen severe economic slowdowns. International tourists in 2020 declined drastically from the previous year of 2019, according to a report published by the World Tourism Organization (UNWTO) in January 2021. Such factors had an impact on the global travel insurance business. On the other hand, once travel restrictions are eased, the tourism and hotel businesses are projected to quickly regain clients.

India Travel Insurance Market – By Types of Coverage

The market is divided into two types of coverage: annual multi-trip and single-trip. In 2021, the Single-Trip segment will command a sizable revenue portion of the travel insurance industry.

When someone leaves their residence, goes on a trip, and then comes home, single-trip travel insurance is employed, as it provides coverage for the entire trip. While somebody is away from home, they can visit multiple destinations or countries on their vacation and it will still be considered a single trip. The trend of travel blogging, as well as the growing interest in traveling overseas among millennials and Generation Z, will fuel the segment's rise.

India Travel Insurance Market – By Channel of Distribution

By distribution channel, the India Travel Insurance market is segmented into Insurance Intermediaries, Insurance Companies, Banks, Insurance Brokers, and Insurance Aggregators based on Distribution Channels. In 2021, the Insurance Broker segment had a significant revenue share in the travel insurance industry. An insurance broker is a middleman who connects people with insurance companies. Using their knowledge and insurance skills, they can find the coverage that best suits the needs of customers at a reasonable price. Customers can save money and time by using brokers, but they may have to pay a fee for their services.

India Travel Insurance Market – By End User

The market is divided into five categories based on end user: family travelers, business travelers, senior citizens, education travelers, and others. In 2021, the family travelers segment had the highest market share in the India travel insurance market, as family vacations typically include numerous individuals of various age groups, necessitating more risk mitigation and planning, resulting in a higher adoption of travel insurance among family vacations.

Competitive Landscape

TATA AIG, Bharti AXA, Bajaj Allianz, SBI General Insurance, Royal Sundaram, HDFC Ergo, and ICICI Lombard are among the top market players in the India travel insurance market. To grow their customer bases and geographic reach, the major players are investing more in developing new insurance products.

Recent Developments

Convenient choices for purchasing travel insurance through online comparison-shopping websites such as direct airline sites and online travel agents (OTAs), among others, are driving the expansion of the travel insurance sector. Insurers are projected to strengthen existing travel insurance distribution networks with the help of technologies such as geolocation, application programme interface (API), artificial intelligence (AI), data analytics, and global positioning system (GPS), among others. As a result, the travel insurance business is projected to benefit from these trends in the coming years.

 

Scope of the Report

Attributes  Details
Years Considered Historical data – 2018–2021
Base Year – 2021
Estimated Year – 2022
Forecast – 2022–2028
Facts Covered Revenue in USD Million
Product/Service Segmentation By Category, By Type, By Channel, By End User, By Coverage
Key Players IFFCO Tokio Travel Insurance, TATA AIG, Apollo Munich (HDFC Ergo), Bharti AXA, Bajaj Allianz, SBI General Insurance, Future Generali, Royal Sundaram, HDFC Ergo, ICICI Lombard, Reliance, and Religare (now, Care Insurance), and other prominent players

 

By Category

  • Domestic
  • International

By Type

  •  Single-Trip Travel Insurance
  •  Multi-Trip Travel Insurance
  •  Extended Travel Insurance

By Channel

  •  Insurance Companies
  •  Insurance Intermediaries
  •  Banks
  •  Insurance Aggregators
  •  Insurance Brokers

By End User

  •  Senior Citizens
  •  Health Travelers
  •  Education Travelers
  •  Business Travelers
  •  Family Travelers
  •  Others

By Coverage

  •  Medical Expense
  •  Trip Delay
  •  Trip Cancellation
  •  Property Damage
  •  Theft/Loss
  •  Others

 

  1. Research Framework
    1. Research Objective
    2. Product Overview
    3. Market Segmentation
  2. Research Methodology
    1. Qualitative Research
      1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
    4. Breakdown of Primary Research Respondents, By Region
    5. Assumption & Limitation
  3. Executive Summary
  4. India Travel Insurance Market Insights
    1. Industry Value Chain Analysis
    2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
    3. Technological Landscape/Recent Development
    4. PESTEL Analysis
    5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
  5. India Travel Insurance Market Overview
    1. Market Size & Forecast by Value, 2018–2028
      1. By Value (USD Million)
    2. Market Share & Forecast
      1. By Category
        1. Domestic
        2. International
      2. By Type
        1. Single-Trip Travel Insurance
        2. Multi-Trip Travel Insurance
        3. Extended Travel Insurance
      3. By Channel
        1. Insurance Companies
        2. Insurance Intermediaries
        3. Banks
        4. Insurance Aggregators
        5. Insurance Brokers
      4. By End-User
        1. Senior Citizens
        2. Health Travelers
        3. Education Travelers
        4. Business Travelers
        5. Family Travelers
        6. Others
      5. By Coverage
        1. Medical Expense
        2. Trip Delay
        3. Trip Cancellation
        4. Property Damage
        5. Theft/Loss
        6. Others
  6. Competitive Landscape
    1. List of Key Players and their Offerings
    2. Players’ Market Share Analysis, 2021
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Development (Merger, Acquisition, Business Expansion, Agreement, Partnership and Product Launch)
  7. Impact of COVID-19 on India Travel Insurance Industry
  8. India Travel Insurance Industry Opportunity and Assessment
  9. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) **
    1. IFFCO Tokio Travel Insurance
    2. TATA AIG
    3. SBI General Insurance
    4. Apollo Munich (now, HDFC Ergo)
    5. Bajaj Allianz
    6. Bharti AXA
    7. Future Generali Travel Insurance
    8. HDFC Ergo
    9. Religare (now, Care Insurance)
    10. Royal Sundaram
    11. Reliance
    12. ICICI Lombard
    13. Other Prominent Players
  10. Key Strategic Recommendations

 

Note:

  • Financial Information of non-listed companies will be provided as per the availability
  • The segmentation and the companies are subjected to modification based on in-depth secondary for the final deliverable.

 

 

List of Figures

 

Figure 1           India Travel Insurance Segmentation

Figure 2           India Travel Insurance Market Value Chain Analysis

Figure 3           Company Market Share Analysis, 2021

Figure 4           India Travel Insurance Market Size, By Value (USD Million), 2018–2028

Figure 5           India Travel Insurance Market Share, By Category, By Value, 2018–2028

Figure 6           India Travel Insurance Market Share, By Type, By Value, 2018–2028

Figure 7           India Travel Insurance Market Share, By Channel, By Value, 2018–2028

Figure 8           India Travel Insurance Market Share, By End-User, By Value, 2018–2028

Figure 9           India Travel Insurance Market Share, By Coverage, By Value, 2018–2028

 

List of Tables

 

Table 1            India Travel Insurance Market Size, By Category, By Value, 2018–2028

Table 2            India Travel Insurance Market Size, By Type, By Value, 2018–2028

Table 3            India Travel Insurance Market Size, By Channel, By Value, 2018–2028

Table 4            India Travel Insurance Market Size, By End-User, By Value, 2018–2028

Table 5            India Travel Insurance Market Size, By Coverage, By Value, 2018–2028

Table 6     IFFCO Tokio Travel Insurance Company Overview

Table 7     IFFCO Tokio Travel Insurance Financial Overview

Table 8     TATA AIG Company Overview

Table 9  TATA AIG Financial Overview

Table 10  SBI General Insurance Company Overview

Table 11  SBI General Insurance Financial Overview

Table 12  Apollo Munich (now, HDFC Ergo) Company Overview

Table 13  Apollo Munich (now, HDFC Ergo) Financial Overview

Table 14  Bajaj Allianz Company Overview

Table 15  Bajaj Allianz Financial Overview

Table 16  Bharti AXA Company Overview

Table 17  Bharti AXA Financial Overview

Table 18  Future Generali Travel Insurance Company Overview

Table 19  Future Generali Travel Insurance Financial Overview

Table 20  HDFC Ergo Company Overview

Table 21  HDFC Ergo Financial Overview

Table 22  Religare (now, Care Insurance) Company Overview

Table 23  Religare (now, Care Insurance) Financial Overview

Table 24  Royal Sundaram Company Overview

Table 25  Royal Sundaram Financial Overview

Table 26  Reliance Company Overview

Table 27  Reliance Financial Overview

Table 28  ICICI Lombard Company Overview

Table 29  ICICI Lombard Financial Overview

 

Market Segmentation

By Category

  • Domestic
  • International

By Type

  •  Single-Trip Travel Insurance
  •  Multi-Trip Travel Insurance
  •  Extended Travel Insurance

By Channel

  •  Insurance Companies
  •  Insurance Intermediaries
  •  Banks
  •  Insurance Aggregators
  •  Insurance Brokers

By End User

  •  Senior Citizens
  •  Health Travelers
  •  Education Travelers
  •  Business Travelers
  •  Family Travelers
  •  Others

By Coverage

  •  Medical Expense
  •  Trip Delay
  •  Trip Cancellation
  •  Property Damage
  •  Theft/Loss
  •  Others
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