Surge in overseas travel insurance purchase of 75% post pandemic: ICICI Lombard
Research by ICICI Lombard has shown an increase of 76 % in India’s travel insurance on international travels post-pandemic compared to 50% before pandemic, as 94 per cent of those planning to travel overseas will subsequently purchase travel insurance for their trip.
Additionally, digital adoption is high for travel insurance purchases, as almost 1/3rd of customers looking for travel insurance visit the insurance company websites to purchase the travel insurance, while the other 30% purchase from online aggregators and online travel platforms.
ICICI Lombard, to understand customer perceptions towards travel insurance conducted the survey to understand traveller’s purchasing behaviours. The survey also helps to understand the difference in perception between leisure and business travel, willingness to purchase insurance, and the importance of travel insurance in current scenarios & awareness on COVID-related coverage. The study also highlights that international travel post-pandemic is more purpose- driven, i.e., for business/work and medical reasons.
The survey points out the impetus of pandemic driving travel insurance from being just a commodity to a necessity as post-pandemic, awareness and adoption of travel insurance increased significantly. COVID coverage is the key benefit travelers seek while looking for travel insurance, not just medical coverage as more than 1/4th of customers bought travel insurance policies due to a COVID medical cover. Also, an increase in post-pandemic trips to USA/Canada (1.6x) and Europe (1.4x) similar to Asia and Australia was observed.
Commenting on the research Sanjeev Mantri, Executive Director, ICICI Lombard, said, “Our research indicates that the outbreak has raised awareness of the importance of travel insurance. Before the pandemic, only 50% of international travellers purchased travel insurance, but after the pandemic, that number has risen to 76%. Customers are increasingly cautious and seek adequate medical cover, including COVID-19 cover for overseas trips. The bulk of travel purchases always took place digitally, with the numbers now only increasing. Once perceived to be not so important, travel insurance is now a necessity. With ‘revenge travel ‘ now back in vogue, we see a huge opportunity and are delighted to note that one-third of respondents chose ICICI Lombard as the preferred partner of choice.”