About nine in 10 Indian tourists think of buying travel insurance

Only 76% of respondents said they bought insurance for their most recent trip.

About 92% of Indians showed their interest in purchasing travel insurance for their next trip, however, only 76% said they actually bought coverage for their most recent travel.

On World Tourism Day, ICICI Lombard General Insurance unveiled a consumer study report titled "Research on Travel Behaviors 2023." This report provides valuable insights into the evolving landscape of travel insurance and the preferences of Indian travellers.

Also, 73% of respondents showed a strong awareness of the importance of travel insurance.

The study explored the preferences and behaviours of families, couples, and singles. Married couples with children had the highest travel insurance purchase rate at 78%, followed by married couples without children (67%) and singles (66%).

The results also identified challenges in international travel planning and unmet needs that could impact the travel insurance landscape in India.

Middle-aged individuals (61%) tended to take two or more trips annually, while this percentage dropped to one in three for those aged 45+.

Travellers who embarked on one trip annually typically had longer trips, averaging around 13-14 days, while those taking two or more trips averaged around 11-12 days for their most recent trip. Single travellers mostly undertook one trip annually, accounting for 55% of the respondents.

Two out of every five individuals encountered issues when arranging their most recent international travel.

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Challenges in planning

Married couples without children faced the most challenges (48%) in travel planning. Younger travelers encountered difficulties with visa applications and finalizing bookings (51% for both aspects), while the middle-aged group faced issues with airline reservations and logistics coordination between cities (48% for both).

Interestingly, travel insurance issues were the least common among both age groups. Logistics between cities posed challenges regardless of the booking method used.

Awareness of travel insurance increased with different family stages: singles (66%), married without kids (67%), and married with kids (78%). Customers who booked through intermediaries had the lowest awareness (57%) of travel insurance.

Among those with high awareness levels, travel insurance purchases increased to 82%, dropping to 18% among those with lower or no awareness.

For international trips, 75% of respondents purchased travel insurance for their most recent journey. 

The top motivators for buying travel insurance were safety and financial protection (28%), coverage and claim limits (18%), and the chosen travel destination (16%). Challenges were encountered by 80% of respondents when someone else booked their travel insurance, and 50% faced difficulties when purchasing independently or through a tour operator.

Future Travel Preferences

India’s travellers said Southeast Asia (47%) and the Middle East (40%) were top choices for upcoming international trips.

71% of respondents stated that the destination significantly influenced their decision to purchase travel insurance. The inclination to acquire travel insurance varied with family stages: couples with kids (94%), couples without kids (92%), and singles (87%).