Indian Travel Insurance Sales Jump 22% as Geopolitical Fears Reshape Overseas Travel

A striking behavioural shift is underway among Indian international travellers: rather than abandoning overseas trips amid a turbulent geopolitical environment, they are increasingly insuring them. According to data from Policybazaar, India's largest insurance aggregator, international travel insurance adoption among Indian travellers rose 22% year-on-year in 2026, driven by heightened awareness of medical emergencies, flight disruptions, geopolitical tensions, and evacuation risks.

The data reveals a meaningful psychological change. For years, travel insurance in India was an afterthought — a checkbox ticked during visa applications or a small add-on barely registered during booking. That is changing rapidly. The clearest evidence is in coverage levels: between 2022 and 2023, most travellers opted for basic cover of around $100,000; during 2024–25, coverage moved toward the $100,000–$250,000 range; and in 2026, cover above $250,000 is increasingly becoming the norm, with the number of travellers buying such high-value coverage roughly doubling. Travellers are prioritising medical coverage, chosen by nearly three-quarters of policy buyers, with cancellation protection accounting for almost half of add-on selections and evacuation coverage growing in popularity.

Importantly, the surge in insurance uptake has not been accompanied by a retreat from travel itself. Trip cancellation ratios actually fell to 6.8% in 2026 from 8.3% the prior year, according to travel protection provider Asego. As Policybazaar's travel insurance business head Manas Kapoor put it, Indian travellers are 'not pulling back due to geopolitical sensitivities — they're simply travelling smarter.' The data shows a clear shift toward short-haul Asian destinations: Japan emerged as the fastest-growing destination with a 17% rise in bookings, followed by Thailand (+12%) and Vietnam (+7%), while Singapore and Malaysia saw stable demand. In sharp contrast, outbound travel to the UAE declined more than 70%, largely due to regional tensions and safety concerns linked to the proximity of the Gulf conflict zone, while travel to Europe and the US softened amid elevated airfares and airspace restrictions.

Despite the momentum, the opportunity remains vast: a striking 82% of Indian outbound travellers still skip travel protection altogether. With international travel expenses rising nearly 20–25%, many travellers are shortening trips or shifting to nearby countries rather than cancelling — a sign that the travel insurance market still has enormous room to grow as the product transitions from an afterthought to an essential part of trip planning.