What’s stopping Indians from buying travel insurance this year?

Security and peace of mind remain key motivators for insurance uptake.

Nearly nine in 10 Indians planning to travel in 2025 say they are likely to purchase travel insurance—driven primarily by concerns over personal safety, extreme weather, and flight disruptions, revealed Allianz Partners.

Allianz Partners’ 2025 edition of its Travel Index further revealed that amongst those intending to travel, 43% said they would purchase insurance through a travel website, whilst 18% plan to buy directly from an insurance provider. 

The study, conducted by Kantar Consumer Link and based on responses from 1,000 Indian adults, found that demand for travel insurance is highest amongst higher-income earners and those booking international trips.

Travellers not planning a trip in 2025 are either more likely to use a travel agent or forgo insurance altogether.

Security and peace of mind remain key motivators for insurance uptake, with 61% citing these as primary reasons for purchasing cover.

Personal safety is a concern for 49% of respondents, whilst 48% are wary of extreme weather events. 

Flight cancellations and delays are a top issue for 42% of higher-income respondents. Older travellers, however, were less concerned across all categories.

Whilst millennials and higher-income groups are leading insurance adoption, those aged 50 and above are less inclined to worry about coverage despite growing exposure to travel-related risks.

With international travel interest recovering, 25% of Indian travellers plan to visit the UK or Europe, 18% other parts of Asia, and 16% Australia, New Zealand, or Pacific islands.

At the same time, affordability continues to limit travel for many, with 84% of non-travellers citing cost as the main barrier.

This is the first year the Allianz Travel Index has been launched in India. The index is part of a broader data set tracking consumer travel behaviour across 20,000 respondents in Asia, Australia, New Zealand, North America, and Europe.