Travel insurance demand is seeing a surge after international commercial flights resumed normal operations on March 27. A larger proportion of international travellers are buying insurance now as compared to pre-pandemic levels.
The boom in travel insurance bookings has enthused insurers, who are looking at strong growth, two years after Covid hit the overseas travel insurance vertical due to lockdowns and international travel restrictions. The US, Canada, the UK, the UAE and Schengen countries have emerged as the top destinations for Indians travelling for leisure, corporate and education.
Online insurance platform Policybazaar said there is a 25% increase in bookings in the week starting from March 27 as compared to the previous week. This number is expected to grow in the coming months when air ticket prices stabilise and holiday season kicks in.
Bajaj Allianz General Insurance anticipates the travel insurance penetration will go past 35%, in terms of insurance taken to the total number of travellers, from around 18% in the pre-pandemic period. ICICI Lombard General Insurance sees increased demand for travel insurance in leisure and business segments, with the leisure segment witnessing a boom due to revenge travel.