With rising global uncertainties, Indian travellers in 2025 are turning to travel insurance for safety and peace of mind, despite cost concerns.
Majority of Travellers Prioritize Safety
Nearly 90% of Indians planning to travel in 2025 say they are likely to buy travel insurance. The main reasons include personal safety, extreme weather, and possible flight disruptions, according to the 2025 Allianz Partners Travel Index.
Where Travellers Are Buying Insurance
Of those surveyed, 43% said they would purchase travel insurance from a travel website, while 18% prefer to buy directly from an insurance provider. These choices highlight a growing preference for convenience and digital platforms.
Higher-Income Groups Lead the Trend
The study, which was conducted by Kantar Consumer Link and included 1,000 Indian adults, found that travel insurance demand is strongest among higher-income travellers and those planning international trips. In contrast, those not travelling in 2025 are more likely to avoid buying insurance or depend on travel agents.
Peace of Mind Remains a Key Driver
Security and peace of mind were mentioned by 61% of respondents as the top reasons for purchasing insurance. Personal safety was a concern for 49%, and 48% were worried about extreme weather. Flight delays and cancellations also ranked high, especially for wealthier travellers. Interestingly, older adults were less concerned across all these areas.
Age Gap in Insurance Awareness
While younger travellers, particularly millennials, are more likely to buy travel insurance, those aged 50 and above seem less worried about potential travel risks. This is despite their increasing exposure to such risks, especially during international trips.
Where Indians Want to Travel in 2025
Interest in overseas travel is on the rise. Among those surveyed, 25% plan to visit the UK or Europe, 18% other parts of Asia, and 16% Australia, New Zealand, or Pacific Islands. However, the cost of travel remains a major issue. Among those not planning to travel, 84% say they cannot afford it.
A New Travel Insight for India
This is the first year the Allianz Travel Index has been released in India. The index is based on global consumer research involving 20,000 respondents across Asia, Australia, New Zealand, North America, and Europe. It provides valuable insights into travel trends and how consumers are responding to global uncertainties.
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