Recent findings from TATA AIG General Insurance Company, Asego, and Policybazaar highlight a shift in travel patterns among various age brackets, with greater focus on flexibility, financial security, and digitally facilitated travel planning.
Popular choices: South Korea, Egypt, and Sri Lanka
According to Tata AIG’s FY26 outbound travel analysis, nearly 40% of Indian travellers are now opting for emerging international locales like South Korea, Sri Lanka, Egypt, Japan, and the Maldives alongside well-known overseas favorites.
Southeast Asia continues to represent the largest segment of insured outbound tourists at 26%, seeing double-digit growth year-on-year.
The insurer noted that Indian travellers spent an average of 24 days abroad during FY26, relatively consistent with recent years. Europe and the United States are highlighted as destinations with the longest average stays, around 32 days, while trips to Southeast Asia averaged nearly 11 days.
May and June remain peak months for outbound travel, driven primarily by summer vacations, with air travel accounting for almost 98% of insured international trips.
Increase in travel insurance uptake
The surge in outbound travel is also encouraging a more significant uptake of travel insurance products.
Policybazaar’s data indicates that the adoption of travel insurance among Indian travellers soared by 22% year-on-year in 2026, reflecting heightened awareness of travel-related risks and financial safeguards during international trips.
Additionally, Tata AIG reported that online purchases of travel insurance have been climbing at an average annual rate of around 10%, emphasizing a lasting preference for digital insurance experiences.
“Indian outbound travel is diversifying, becoming more frequent, and driven by digital tools, with travellers of all ages visiting both established and newer international destinations,” stated Chandrakant Said, Vice President – Consumer Underwriting at Tata AIG General Insurance Company.
He further noted that there is a growing trend of travel insurance adoption among families, seniors, and first-time international travellers.
Broadening reasons for insurance purchases
Industry insiders report that travellers are acquiring travel insurance not just for medical issues, but also to guard against operational setbacks like flight delays, luggage loss, and trip cancellations.
Claims data from Asego, a travel assistance and insurance service provider, revealed that non-medical claims outnumbered medical claims by nearly four-to-one during the past financial year.
According to Asego, over 16,000 claims were linked to non-medical circumstances compared to around 4,000 medical claims.
The company recorded more than 5,500 claims related to trip cancellation, interruption, and curtailment, over 3,500 for trip delays, 500 claims regarding flight delays, 3,000 for delayed luggage, and 200 for lost baggage.
“The trend in claims assistance clearly illustrates that travel protection today addresses multiple needs beyond just medical emergencies,” remarked Dev Karvat, Founder and CEO of Asego.
“Travel disruptions have become a significant aspect of international travel, making robust travel protection essential for holidaymakers,” he added.
Experts in the industry note that flight disruptions, geopolitical tensions, and rising overseas medical expenses are prompting travellers to pursue broader coverage plans, which include emergency assistance, evacuation support, and compensation for delays or cancellations.
Growth driven by seniors and younger travellers
The data also reveals shifts in traveller demographics.
Travellers aged over 55 represented 22% of international travellers insured by Tata AIG in FY26, indicating increasing participation from senior citizens in overseas adventures.
Meanwhile, the 21–55 age group remains the dominant force in outbound travel, comprising 66% of insured travellers.
Asego has also reported a notable rise in insurance adoption among younger travellers, with purchases of travel insurance by those up to 18 years of age increasing by 56% over the previous year, and a 24% rise among the 19–30 age group.
Travellers maintain plans despite challenges
Industry observations suggest that even with sporadic disruptions in global aviation and geopolitical uncertainties, travellers are generally not cancelling their overseas plans.
Instead, many are focusing on preparedness and protection while continuing to invest in international travel experiences.
Data from Asego indicates that the rate of trip cancellations has decreased to 6.8% this year, down from 8.3% in the prior year, suggesting that travellers are moving forward with planned trips despite uncertainties.
