Market Trends of India Travel Insurance Industry
This section covers the major market trends shaping the India Travel Insurance Market according to our research experts:
Boost in tourism post pandemic
The tourism sector in India is a significant component of India's growth and economy. In the last decade, the global tourism sector has seen steady development. According to the World Tourism Organization, international visitor arrivals stood at 12 million in 2021. The share of tourism in India's GDP was 9.2% in 2020. Tourism supported more than 50 million jobs. The tourism sector generated 8.1 % of India's total employment. By 2027, some studies have indicated that tourism in India is expected to grow approximately 7% and is expected to be a $450 billion industry. Expanded disposable income, package holidays, broad media coverage of various holiday kinds, and simple internet travel reservations have contributed to the tourism industry's expansion.
As the tourism industry grows, more cases of lost baggage, crucial papers, medical issues, and natural disasters are stated. A rising number of people are purchasing travel insurance to reduce the possibility of such occurrences. Consequently, the tourist industry's expansion is propelling the travel insurance market forward.
Digitalization driving market growth
In the months gone by, insurers have started to realize the fact that the conventional approach of selling insurance products to consumers will no longer be near enough for the insurers who wish to stay forward of their competitors. The basis of the entire insurance industry is based on offering products and services to the consumers that help them stay protected against loss because of an unfortunate event.
And, in 2022, this will continue to remain an essential element of what insurers do, we will also witness a technology-driven shift in the way insurance is sold. The insurers will concentrate more on selling insurance products through a telemedical process which is the need of the hour. This will be balanced by the e-KYC process for completing the verification process of the consumers to buy a health and term insurance plan. During the COVID-19 pandemic, the digital shift toward selling insurance policies has gained considerable traction and is sure to continue in the years to come. Buying insurance through digital channels reduces the buying process and gives consumers a plethora of options to select the right insurance product as per their choice and requirement.
