A recent study by Go Digit General Insurance has shed light on how the demand for travel insurance and policies was affected by the COVID-19 pandemic.
The report is based on Digit’s internal data where it analyzed data for all travel insurance products between April 2019 and March 2022. Findings revealed that the demand for travel policies had increased in the financial year 2011-22 as compared to earlier. COVID-19 times or FY-19-20.
Digit sold over 12.8 lakh travel policies in FY 2011-22, a jump of over 100 per cent compared to FY 2019-20.
Furthermore, it was revealed through the study that the fear of the pandemic prompted people to buy more travel policies in the early months of 2022. As per the data, the insurer sold 75 per cent of the total travel policies sold in 2021 in just one month. The first four months of the current year. The month of February saw the highest demand for travel policies during these months.
However, more claims were found settled in FY19-20 as Indians traveled more during pre-COVID times. In 2022, highest number of travel claims were settled in the month of March. There was a jump of around 120 per cent in comparison to the claims settled in January.
About 3.5 times more travel claims were made due to flight delays in FY20-21 as compared to FY21-22. Meanwhile, in the financial year 2020-21, flight cancellations saw a 3.5-fold jump in travel claims. More travel policies were sold on the BOM-DEL (Mumbai-Delhi) route in the three financial years between April 2019 and March 2022.
Among the reasons for making travel insurance claim, flight cancellation by operator, flight delay by operator, risk cancellation and booking modification emerged as the most common reasons. More people preferred to buy single-trip policies from Digit, which saw a growth of 215 per cent in FY21-22 as compared to FY20-21. Overall, Digit sold around 11.7 lakh single-trip travel policies in FY12, a 215 per cent increase over FY11 figures.
The study also revealed that men filed 61 per cent of the total travel claims made between April 2019 and March 2022.
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