A recent study carried out by Go Digit General Insurance has shed light on how the demand for travel insurances and policies was impacted by the COVID-19 pandemic.
The report is based on the internal data of Digit where it analysed data of all the travel insurance products between April 2019 and March 2022. The findings revealed that there was a spike in demand for travel policies in FY21-22 as compared to the pre-COVID-19 times or FY-19-20.
Digit sold more than 12.8 lakh travel policies in FY21-22 which was a jump of over 100 per cent as compared to FY19-20.
In addition, it was learned through the study that the fear of the pandemic caused people to buy more travel policies in the initial months of 2022. As per data, the insurer sold 75 per cent of the total travel policies sold in 2021 in just the first four months of the current year. During these months, the most demand for travel policies was observed in the month of February.
However, more claims were found to be settled in FY19-20 as Indians travelled more during the pre-COVID times. In 2022, the highest numbers of travel claims were settled in the month of March. A jump of almost 120 per cent was seen as compared to claims settled in January.
Around 3.5 times more travel claims were made due to flight delays in the FY20-21 than in FY-21-22. Meanwhile, flight cancellations resulted in 3.5 times higher travel claims in FY20-21. The three financial years saw more travel policies being sold on the BOM-DEL (Mumbai-Delhi) route between April 2019 and March 2022.
Among the reasons to make travel insurance claims, flight cancellation by the operator, flight delay by the operator, risk cancellation, and booking amendment, emerged as the most common causes. More people preferred to buy single-trip policies from Digit which saw a surge of 215 per cent in FY21-22 than FY20-21. In total, Digit sold almost 11.7 lakh single-trip travel policies in FY22 which was an increase of 215 per cent from the figures of FY21.
The study also highlighted that men filed 61 per cent of the total travel claims made between April 2019 and March 2022.