New data released by TATA AIG General Insurance Company, Asego and Policybazaar points to changing travel behaviour across age groups, with travellers placing greater emphasis on flexibility, financial protection and digitally enabled travel planning.
South Korea, Egypt and Sri Lanka emerge as popular choices
According to Tata AIG’s FY26 outbound travel insights, nearly 40% of Indian travellers are now choosing emerging international destinations such as South Korea, Sri Lanka, Egypt, Japan and the Maldives alongside traditional overseas hotspots.
Southeast Asia continued to account for the largest share of insured outbound travellers at 26%, registering double-digit growth year-on-year.
The insurer said Indian travellers spent an average of 24 days overseas during FY26, broadly unchanged from recent years. Europe and the United States emerged as destinations with the longest average stays at around 32 days, while trips to Southeast Asia averaged nearly 11 days.
May and June remained peak outbound travel months driven by summer vacations, while air travel accounted for almost 98% of insured international trips.
Travel insurance adoption rises
The rise in outbound travel is also driving stronger adoption of travel insurance products.
Data from Policybazaar showed travel insurance adoption among Indian travellers rose 22% year-on-year in 2026, reflecting growing awareness around travel-related risks and financial protection during overseas trips.
Tata AIG separately reported that online travel insurance purchases continued to grow at an average annual rate of around 10%, highlighting sustained consumer preference for digital-first insurance journeys.
“Indian outbound travel is becoming more diverse, frequent and digitally driven, with travellers across age groups exploring both established and emerging international destinations,” said Chandrakant Said, Vice President – Consumer Underwriting at Tata AIG General Insurance Company.
He added that the company is witnessing stronger adoption of travel insurance among families, senior travellers and first-time international travellers.
Travellers seek protection beyond medical emergencies
Industry participants say travellers are purchasing travel insurance not only for medical emergencies but also to protect themselves against operational disruptions such as flight delays, baggage loss and trip cancellations.
Claims data shared by Asego, a travel assistance and insurance provider, showed non-medical travel insurance claims outnumbered medical claims by nearly four-to-one during the last financial year.
According to the company, more than 16,000 claims were related to non-medical issues compared with around 4,000 medical claims.
The company reported receiving over 5,500 claims linked to trip cancellation, interruption and curtailment, more than 3,500 claims for trip delays, over 500 claims related to flight delays, 3,000 claims for delayed baggage and 200 claims for baggage loss.
“The claims assistance trend clearly demonstrates that travel protection today serves multiple needs and extends far beyond medical emergencies,” said Dev Karvat, Founder and CEO of Asego.
“Travel disruptions have become an integral part of international travel, making comprehensive travel protection increasingly important for travellers,” he added.
Industry experts say flight disruptions, geopolitical tensions and rising overseas medical costs are encouraging travellers to opt for broader coverage plans that include emergency assistance, evacuation support and compensation for delays or cancellations.
Senior citizens and younger travellers contribute to growth
The data also points to changing traveller demographics.
Travellers above the age of 55 accounted for 22% of international travellers insured by Tata AIG in FY26, indicating growing participation by senior citizens in overseas travel.
At the same time, the 21–55 age group continued to dominate outbound travel, accounting for 66% of insured travellers.
Asego separately reported rising insurance adoption among younger travellers. Travel insurance purchases by travellers up to 18 years of age increased 56% compared with the previous year, while the 19–30 age group recorded a 24% increase.
Travellers continue with plans despite disruptions
Industry data suggests that despite periodic disruptions across global aviation networks and geopolitical uncertainties, travellers are not necessarily cancelling overseas trips.
Instead, many are focusing on preparedness and protection while continuing to spend on international travel experiences.
Data shared by Asego showed trip cancellation ratios declined to 6.8% this year from 8.3% a year earlier, indicating that travellers are proceeding with planned journeys despite uncertainty.
