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The Ahmedabad plane crash and the Israel-Iran conflict have understandably heightened people’s concerns about the safety and security of their travels
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Amid heightened West Asia tensions and in the aftermath of the deadly plane crash in Ahmedabad, insurance companies are witnessing a growing demand and a greater focus on travel insurance in trip planning.
With the US entry into the Israel-Iran war and Iran’s strike on an American air base in Qatar causing travel disruptions globally, travellers have become more conscious of the need for financial protection against unforeseen circumstances.
“After the current unpredictable global situation and the recent plane crash in Ahmedabad, we are noticing a significant rise in awareness around travel insurance,” Bhaskar Nerurkar, Head-Health Administration Team, Bajaj Allianz General Insurance, told businessline.
As travellers are becoming more conscious of uncertainties ranging from medical emergencies to geopolitical disruptions there is a clear uptick in demand for comprehensive travel protection, observed Priya Deshmukh – Head Health Products, Operations & Services, ICICI Lombard General Insurance.
In the world’s worst aviation disaster in a decade, all but one of the 242 people on board an Air India passenger plane bound for London crashed moments after taking off from Ahmedabad on June 12.
Following the tragic Air India plane crash, the airline is experiencing flight delays and cancellations due to security concerns. Causing more trouble for the travellers, the West Asia crisis has led to widespread rerouting and cancelling of international flights.
Amid this domestic and global scenario, the country’s general insurance companies said they are witnessing a rising trend where travellers are showing more interest in knowing about different aspects of travel insurance policies such as covers for medical emergencies, hospitalisation due to illness or injury, emergency medical evacuation, trip cancellation, trip interruption or curtailment, and loss of baggage, among others.
Growing demand
“While this increased engagement may not directly translate into a steep surge in new policy sales at the moment, it strongly suggests a growing demand and a greater focus on travel insurance in future trip planning,” Nerurkar pointed out.
The insurers feel that the travel insurance business within the general insurance industry is expected to see significant growth this year, driven by a combination of recent global events and increasing consumer awareness. The Ahmedabad plane crash and the Israel-Iran conflict have understandably heightened people’s concerns about the safety and security of their travels.
“The travel insurance segment is poised for strong growth in the coming years. With international travel bouncing back to pre-pandemic levels and travellers becoming more conscious of uncertainties ranging from medical emergencies to geopolitical disruptions there is a clear uptick in demand for comprehensive travel protection,” Deshmukh told businessline.
According to Deshmukh, amid the uptick in demands the insurance industry is responding with more tailored and customer-centric solutions for travel insurance plans. “The increased awareness, coupled with these enhanced offerings, is driving higher adoption and is expected to contribute significantly to the segment’s growth in 2025 and beyond,” she said.
Nerurkar said during these uncertain times, more individuals are likely to recognise the value of travel insurance as it can provide crucial financial protection against unexpected incidents that could disrupt their plans. “Even otherwise, for most of the international visas and travels, insurance was mandatory,” he said, adding the current uncertain scenario may push international travellers to purchase additional covers.
The travel insurance market in India currently stands at ₹1,343.56 crore and is witnessing a healthy momentum with a CAGR of 11.5 per cent, as per the General Insurance Council.
“This upward trajectory is driven by the resurgence in outbound travel, greater awareness of travel-related risks and a growing preference for comprehensive protection against disruptions such as medical emergencies, trip cancellations, and geo-political events,” Deshmukh added.
Published on June 24, 2025
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