International travel hotspots
• This year Germany emerged as top driver, followed closely by Thailand reflecting a mix of Schengen visa requirements and high-volume leisure trips to Southeast Asia.
Travellers’ upsize to high-limit protection
• USD 250,000 -Travellers preferred sum insured USD 250,000 cover for Africa, Asia, Japan, Europe and trips worldwide.
• USD 500,000- Travellers are opting for a much higher cushion for US and Canada, as healthcare costs are significantly higher.
Demographics: The rise of the ‘senior voyager’
• In 2025, senior citizens emerged as a significant growth driver (15%) of all insured travellers, while student travel insurance holds 1% niche but steady segment driven by long-stay education requirements.
• Individual travel policies dominated with 75% share; family policies formed the rest.
2025 Trend: 15% Growth in Travel Protection
• Annual Surge: Travel insurance policy issuance grew by 15% Y-O-Y. This reflects the transition of insurance into a travel essential.
• Month wise: May saw the highest travel insurance purchases, followed by April coinciding with summer vacations and early international leisure bookings
Reality of claims -Medical vs. Baggage
• By ticket size: Medical claims continue to account for the highest claim value, reflecting the high cost of overseas healthcare,
• By number of incidents: Baggage loss, delays and trip-related claims were the most frequent, highlighting travel disruptions remain the most common pain point for travellers.
Meet Kapadia, Head of Travel Insurance at Policybazaar.com said, 2025 clearly marks the year when travel insurance shifted from being optional to essential. The 15% year-on-year growth reflects a more mature, risk-aware Indian traveller who now views insurance as an integral part of travel planning. We’re seeing a strong preference for higher sum insured options—USD 250,000 for most global destinations and USD 500,000 for the US and Canada—driven largely by rising medical costs abroad. Another defining shift is the rise of the senior voyager, who now accounts for a meaningful share of insured travellers. While medical claims continue to drive the highest claim value, frequent baggage and trip disruption claims underline why travellers are prioritising comprehensive protection today. Thus, travellers are becoming far more conscious of risk and preparedness.”
