On the occasion of World Tourism Day, ICICI Lombard General Insurance released an exclusive consumer study report titled “Research on Travel Behaviours 2023” today. The study provides valuable insights that offer a distinct viewpoint on the changing realm of travel insurance and the inclinations of Indian travellers.
The company unveiled a study on the international travel habits of Indians, which revealed that 76 per cent had purchased travel insurance for their most recent trip, and a staggering 92 per cent expressed an intention to acquire it for their next journey. The findings also highlighted that an impressive 73 per cent of respondents exhibited a strong awareness of the significance of travel insurance, emphasising the growing recognition of the need to protect travel experiences. Additionally, the study revealed that awareness of travel insurance increases with different stages of family life, with married couples with children being the highest group purchasing travel insurance at 78 per cent, followed by married couples without children (67 per cent), and singles (66 per cent).
The study conducted an in-depth exploration of the mindset of Indian travellers, uncovering their distinct preferences, awareness levels, and behaviours within each customer category: families, couples, and singles. By conducting this research, the insurer illuminated the existing challenges associated with organising and carrying out international travel, identified any existing gaps or unmet needs that could be addressed, and examined how these changes might impact the landscape of travel insurance in India.
Sheena Kapoor, Head Marketing, Corporate Communications & CSR, ICICI Lombard, said, “These statistics underline a growing consciousness among travellers to safeguard their travel experiences and protect themselves against unforeseen events. It is indeed encouraging to see that travel insurance is no longer an afterthought but a proactive choice for a majority of respondents. Additionally, the correlation between family stages and travel insurance awareness is a noteworthy discovery, demonstrating that individuals are increasingly recognising the importance of securing their travel plans, particularly as they progress through various life stages.”
Notable findings from the research include:
In terms of travel conduct as a whole
Individuals with children are more inclined to take more than two trips annually
- When comparing age groups, 61 per cent of individuals in the middle-aged group tend to embark on two or more trips in a year, whereas this percentage drops to one in three for those in the 45+ age group.
- Respondents who travel once a year typically have slightly longer trips, averaging around 13-14 days, whereas those taking two or more trips average around 11-12 days for their most recent trip.
- Single travellers typically embark on one trip annually, accounting for 55 per cent of the respondents.
Two out of every five individuals encountered a problem when arranging their most recent international travel.
- Customers who are married without children appeared to encounter the most challenges with their travel planning, with 48 per cent reporting issues.
- Within the younger age group, the most significant problems were encountered during visa applications and finalizing bookings, with both aspects reported by 51 per cent of respondents. In contrast, the middle age group faced difficulties with airline reservations and coordinating logistics between cities, each reported by 48 per cent of respondents. Notably, travel insurance issues were the least common among both age groups.
- Logistics between cities emerged as a frequently encountered issue regardless of the method of booking used.
Regarding travel insurance patterns
Understanding of travel insurance
- Awareness of travel insurance (including those mostly aware and completely aware) rises with different family stages: Single (66 per cent), married without kids (67 per cent), and married with kids (78 per cent).
- Customers who book through intermediaries tend to have the lowest awareness (57 per cent) of travel insurance (mostly aware + completely aware).
- Among individuals with the highest awareness levels (mostly aware + completely aware), the purchase of travel insurance increases to 82 per cent, whereas it drops to 18 per cent among customers with lower or no awareness.
- For international trips, three out of four respondents (75 per cent) purchased travel insurance for their most recent international journey.
- The top three factors motivating individuals to purchase travel insurance are safety and financial protection (28 per cent), coverage and claim limits (18 per cent), and the chosen travel destination (16 per cent).
- The highest level of difficulty in purchasing travel insurance is encountered when the insurance booking is done by someone else, with 80 per cent of respondents reporting difficulties. Additionally, 50 per cent of respondents who purchased travel insurance independently and 52 per cent who obtained it through a tour operator or travel agent also faced challenges in the process.
Outlook on future travel conduct
Travel destination preferences
- Southeast Asia (47 per cent) and the Middle East (40 per cent) stood out as the top choices for travel destinations among respondents for their upcoming international trips.
- A significant 71 per cent of respondents stated that the destination completely influences their decision regarding the need for travel insurance.
- 92 per cent plan to buy travel insurance for their upcoming international journey.
- The inclination to acquire travel insurance rises with different family stages: Couples with kids (94 per cent), couples without kids (92 per cent), and singles (87 per cent)