Recent data from TATA AIG General Insurance Company, Asego, and Policybazaar highlights shifting travel behaviors among different age groups, with a stronger focus on flexibility, financial security, and travel planning facilitated by technology.
South Korea, Egypt, and Sri Lanka rise in popularity
According to Tata AIG’s FY26 outbound travel insights, approximately 40% of Indian travellers are now opting for emerging international locations like South Korea, Sri Lanka, Egypt, Japan, and the Maldives, in addition to traditional overseas favorites.
Southeast Asia remains the largest segment for insured outbound travellers, holding a 26% share, with double-digit year-on-year growth.
The insurer noted that Indian travelers spent an average of 24 days abroad during FY26, which is consistent with recent trends. Europe and the United States saw the longest average stays, around 32 days, while trips to Southeast Asia averaged nearly 11 days.
May and June have been identified as peak months for outbound travel, driven by summer vacations, with air travel making up almost 98% of insured international journeys.
Increase in travel insurance adoption
The growth in outbound travel has fueled a rise in the uptake of travel insurance products.
Data from Policybazaar indicates that travel insurance adoption among Indian travellers surged by 22% year-on-year in 2026, reflecting heightened awareness of travel-related risks and the need for financial protection during overseas trips.
Tata AIG further reported that online travel insurance purchases have been increasing at an average annual rate of around 10%, underscoring a continuing consumer preference for digital-first insurance experiences.
“Indian outbound travel is becoming more diverse, frequent, and digitally driven, with travellers from various age groups exploring both established and emerging international locations,” remarked Chandrakant Said, Vice President – Consumer Underwriting at Tata AIG General Insurance Company.
He noted that the company is seeing a greater embrace of travel insurance among families, older travellers, and first-time international explorers.
Travellers seek protection beyond medical emergencies
Industry experts indicate that travellers are purchasing travel insurance not solely for medical emergencies, but also to safeguard against operational disruptions such as flight delays, baggage loss, and trip cancellations.
Claims data from Asego, a travel assistance and insurance provider, reveals that non-medical travel insurance claims outpaced medical claims by nearly four-to-one in the last financial year.
The company reported over 16,000 claims related to non-medical issues, compared to about 4,000 medical claims.
There were more than 5,500 claims linked to trip cancellations, interruptions, and curtailments, over 3,500 claims for trip delays, around 500 for flight delays, 3,000 for delayed baggage, and 200 for baggage loss.
“The trend in claims assistance clearly illustrates that travel protection now addresses multiple needs, extending well beyond medical emergencies,” stated Dev Karvat, Founder and CEO of Asego.
“Travel disruptions have become a common facet of international travel, emphasizing the importance of comprehensive travel protection for travellers,” he added.
Experts observe that flight disruptions, geopolitical tensions, and escalating overseas medical expenses are prompting travellers to select broader coverage plans that encompass emergency assistance, evacuation support, and compensation for delays or cancellations.
Senior citizens and younger travellers drive growth
The data also reveals changes in traveller demographics.
Individuals aged over 55 represented 22% of international travellers insured by Tata AIG in FY26, illustrating an increased participation of senior citizens in international travel.
Conversely, the 21–55 age bracket continues to dominate outbound travel, accounting for 66% of insured travellers.
Asego has separately reported a rise in insurance adoption among younger travellers, with purchases by those under 18 increasing by 56% compared to the previous year, while the 19–30 age group saw a 24% rise.
Travellers persist with plans despite disruptions
Industry data indicates that despite periodic disruptions within global aviation networks and geopolitical uncertainties, travellers are not significantly cancelling overseas trips.
Instead, many are prioritizing preparedness and protection while still investing in international travel experiences.
Asego’s data shows that trip cancellation ratios fell to 6.8% this year from 8.3% the previous year, suggesting that travellers are proceeding with their planned journeys despite uncertainties.
