Insurance policies

Travel insurance policies in demand after the pandemic: survey

Demand for travel insurance policies increased in FY21-22 from pre-covid levels in FY19-20, according to a survey by ICICI Lombard General Insurance.

The survey, conducted among consumers in Indian markets, analyzed the impact of the pandemic on traveler attitudes and expectations and revealed that travelers are now more receptive to purchasing travel insurance to mitigate the potential financial losses. ICICI Lombard settled 3,378 travel insurance claims, nearly 1.37 times more than last year.

A third of respondents said they had taken out ICICI Lombard travel insurance after the pandemic, the insurer said. The survey was conducted among 786 national and international travellers.

“Our research indicates that the outbreak has raised awareness of the importance of travel insurance. Before the pandemic, only 50% of international travelers had purchased travel insurance, but after the pandemic, that number rose to 76%. Customers are increasingly cautious and seeking adequate medical coverage, including COVID-19 coverage for overseas travel. The bulk of travel purchases have always been done digitally, and the number is only growing. Once seen as less important, travel insurance is now a necessity. With ‘revenge travel’ back in vogue, we see a huge opportunity and are delighted to see that a third of respondents have chosen ICICI Lombard as their preferred partner of choice,” said Sanjeev Mantri, Executive Director, ICICI Lombard General Insurance.

Even though the rules and restrictions are constantly changing, some countries have made it mandatory for tourists to have travel insurance, either building it into the visa or entry fee or requiring proof that includes Covid-19 cover. 19. Travel insurance has become a must on vacation.

Main conclusions of the investigation report:

• Awareness of using a travel insurance policy for international travel before the pandemic was 76% and after the pandemic it increased to 90%

• While in the pre-pandemic period 50% used travel insurance when traveling internationally, there is an increase in the use of travel insurance to 76% in the post-pandemic period

• Among those planning to travel abroad in the future, 94% will take out travel insurance for their trip

• Post-pandemic travel to the US/Canada (1.6x) and Europe (1.4x) increased while almost the same for Asia and Australia

• Post-pandemic people traveling for work (1.2x) and medical (2x) reasons have increased as they are abandoned for study or vacation trips

• Over the past 12 months, an increase has been observed in outbound travel, which is mainly driven by the younger age group (25-35 years old)

• Travel times were shorter after the pandemic (10-12 days) than before the pandemic (2 weeks).

• Medical costs for covid will remain a more important reason to purchase travel insurance in the future in addition to covering emergency hotel extensions (52%)

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