In the first quarter of 2025, the travel insurance market in India grew rapidly, with policy sales rising by an astounding 18.95% year over year. The main causes of this increase include increased disposable incomes, increased travel, and a greater understanding of the importance of having comprehensive travel insurance, particularly when travelling abroad. More and more travellers are choosing insurance with improved benefits including trip cancellation coverage, medical emergency protection, and visa fee reimbursement riders.
Travel plans in India are still heavily influenced by European locations, with Germany, France, and Switzerland being the most popular options. Germany is a major market for both business and leisure travel, accounting for 20% of all outbound travel. The demand for add-ons like adventure sports coverage is being driven by adventure travel destinations like Switzerland and the Netherlands.
Notably, women are primarily responsible for this momentum, with a 19% increase in international travel among women and a 13% increase among men. Due to their desire for more comprehensive travel protection, which includes coverage for emergency medical requirements and trip delays, many women are choosing more comprehensive policies.
The increasing use of the Visa Fee Refund rider, which is currently added by 20% of policyholders, is a significant trend influencing the industry. Following the 15.70% Schengen visa refusal rate in 2023, which left many passengers with irreversible financial losses, this function has gained popularity.
Furthermore, there is a noticeable trend towards more comprehensive coverage, as 62% of travellers select insurance plans with medical benefits of at least USD $250,000. This trend underscores the increasing priority placed on healthcare security while traveling abroad.
The demand for travel insurance is especially high during February to April, aligning with spring and summer travel peaks. Notably, 76% of travellers now purchase their travel insurance 45–50 days before departure, indicating a proactive and risk-aware approach.
