Rising global uncertainties and why more Indians are buying travel insurance today

If there’s one travel habit that has changed dramatically in the past two years, it’s this: Indians are no longer travelling without a safety net. Whether it’s a family flying to Singapore for a holiday or a young professional heading to Europe, travel insurance has quietly moved from a “good-to-have” add-on to an essential part of the trip checklist.

It’s not hard to see why. Global risks like geopolitical tensions, flight disruptions, climate-linked events, and medical emergencies are no longer rare headlines. They are real experiences faced by everyday travellers.

A Market Growing Faster Than Ever

What was once a small, quiet corner of the insurance world has now become a booming category. India’s travel insurance market isn’t just growing—it’s accelerating. IMARC Group estimates its value at USD 1.33 billion in 2024, and it’s on track to grow at 17%+ every year for the next decade. But the numbers tell an even bigger story.

As Indians travel more frequently to study, work, explore, or simply take a break they’re realising that one unexpected medical bill or a sudden flight disruption can cost far more than the trip itself. That awareness is pushing travel insurance from the background to the centre of smart financial planning.

The New Traveller Mindset: ‘What If Something Goes Wrong?’

Until recently, the focus for most travellers was cost—cheap flights, low-cost hotels, budget itineraries. Today, the question is different: “If something unexpected happens, will I be protected?”

Here are three major reasons behind this shift:

1. Unpredictable Travel Disruptions

Airline delays, missed connections, airport strikes, natural events, and sudden cancellations are now part of global travel realities. Insurance Journal reports rising demand for premium and parametric travel insurance as travellers want faster payouts and fewer claim hassles in case of disruptions.

2. Rising Medical Costs Abroad

One of the biggest wake-up calls for Indian travellers has been the cost of healthcare overseas. A quick clinic visit in Singapore, a sprain treated in Japan, or a short ER stay in the U.S. all of these can easily run into thousands of dollars.

3. Growing Preference for Premium Cover

As incomes rise and global travel becomes more frequent, travellers aren’t just buying basic insurance—they’re choosing richer, more comprehensive plans. Coverage for adventure sports, cruise trips, trip

cancellations, lost baggage, and even “Cancel For Any Reason” (CFAR) options is becoming increasingly popular. Today’s travellers want the freedom to explore without constantly worrying about what might go wrong.

4. Popular Add-Ons: What Travellers Want Today

Travel insurance has transformed from a simple medical-backup product into a full protection shield. Modern travellers now look for plans that cover:

● Trip cancellations or early returns

● Delayed or lost baggage

● Flight delays and missed connections

● Lost passports or travel documents

● Adventure sports and cruise travel

● Emergency medical evacuation and repatriation

These aren’t “extras” anymore—they’re the new standard for anyone travelling abroad. There is also growing interest in parametric insurance, which offers small, automatic payouts during flight delays or weather-triggered disruptions. Travellers appreciate the transparency and speed.

Corporate Travellers Are Becoming Risk-Aware Too

Business travel has also changed. Companies now take a more responsible approach to employee safety and financial risk. More organisations are choosing:

● Global medical coverage

● Travel delay protection

● Emergency evacuation

● Crisis-management assistance

This shift reflects a broader trend: travel risk management is becoming part of corporate policy rather than a discretionary expense.

The Bottom Line: Travel Insurance Is No Longer Optional

The world is more connected than ever but also more unpredictable. Families are planning farther, spending more, and seeking reassurance that if something goes wrong, their finances will remain protected.

Travel insurance is ultimately about peace of mind.

(Views are personal; the author is Joint Chairman and MD at BajajCapital Ltd)