More people are buying travel insurance policies after Covid-19, industry insiders say
Travel has changed after the pandemic. It now comes with that lingering fear of catching Covid-19, which could mean an extended stay or even hospitalization in a foreign country upsetting travel plans. This is the reason why more people are buying travel insurance policies than before.
“We have seen healthy growth in international travel insurance policies from pre-pandemic levels, which are around 22%. Domestic travel insurance is still nascent in India as many customers already have health insurance policies and also personal accident (PA) covers,” says Sourabh Chatterjee, Senior President and Head of IT, Web Sales, travel, Bajaj Allianz General Insurance.
Travel insurance has evolved since the start of the Covid-19 pandemic. According to Go Digit General Insurance, in the first four months of 2022, the insurer sold 75% of the total number of travel policies it sold throughout FY21, given the heightened awareness.
Digit General Insurance sold over 12.8 lakh travel policies in FY21-22, a jump of over 100% from the pre-Covid year of FY2019-20. The analysis also revealed that demand for single-trip policies increased 215% in FY21-22 compared to FY20-21. In FY22, the company sold nearly 11.7 lakh of one-way travel policies, an increase of 215% from FY21.
Vivek Chaturvedi, Head of Direct Sales and Marketing Director at Digit Insurance, said: “Travel cancellations, cancellations and flight delays have always been the leading causes of travel complaints. Events such as poor weather conditions, changes in travel plans and airline punctuality, among other causes, can affect travel plans. Before Covid-19, travel insurance was not taken seriously, especially by domestic travellers. However, more and more Indians are now taking out travel insurance to ensure that unforeseen mishaps do not disrupt their itineraries. The category has also evolved over the past few years, with some insurers now offering innovative and needs-based products. In the years to come, travel products are set to gain momentum, further opening up the segment.
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