As of Wednesday, 25 March 2026, 14:09:47 IST, the Indian travel insurance market is shifting. It’s transforming. Driven by tech.
According to a report by ICRA, the market’s projected to grow at a CAGR of 15% from 2022 to 2025, reaching a market size of ₹500 crore. That’s a big deal.
This growth is expected to be driven by demand for online travel bookings and integrated insurance solutions, which is unusual, given the traditional nature of the industry.
And, digital payments are rising. Insurers are focusing on user-friendly platforms. For instance, Policybazaar, a leading online insurance marketplace, has partnered with travel companies like MakeMyTrip and Yatra to offer integrated travel insurance solutions.
“We have seen a significant increase in demand for travel insurance policies, particularly among young travelers,” said Sarbvir Singh, CEO of Policybazaar. He’s right.
But, there’s a challenge. Insurers need to provide seamless customer experience and reduce claims.
To address this, companies like Tata AIG and Bajaj Allianz are investing in AI and ML technologies to enhance their claims processing and customer service capabilities. For example, Tata AIG has launched a mobile app. It enables customers to file claims and track their status in real-time. “Our goal is to provide a hassle-free experience for our customers, and technology is playing a critical role in achieving this,” said Parag Ved, Executive Vice President at Tata AIG. That’s a rare admission.
The Indian government has taken initiatives. It’s promoting the travel insurance sector.
On 1 January 2020, the Ministry of Finance announced measures to boost the growth of the insurance industry, including travel insurance. The government has also launched the ‘Pradhan Mantri Suraksha Bima Yojana’ (PMSBY) scheme. It provides accidental death and disability coverage to travelers. Over 10 million travelers have already enrolled.
It’s working.
The Insurance Regulatory and Development Authority of India (IRDAI) has introduced guidelines for travel insurers to provide customized policies for different types of travelers, such as students, seniors, and adventure seekers.
For instance, Bharti AXA General Insurance has launched a ‘Student Travel Insurance’ policy. It provides coverage for medical expenses, trip cancellations, and delays. “We are committed to providing innovative insurance solutions that cater to the diverse needs of Indian travelers,” said Sanjeev Srinivasan, Managing Director at Bharti AXA General Insurance. He’s committed.
The market’s projected to reach ₹500 crore by 2025.
Companies that invest in technology and innovation will gain a competitive advantage.
That’s why insurers need to develop user-friendly platforms and invest in AI and ML technologies. They must provide customized policies for different types of travelers. It’s essential.
For more information on travel insurance and finance news, visit our finance news section.
You can also read our article on India’s Health Insurance Goes Phygital: Tech-Savvy to learn more about the intersection of technology and insurance in India.
