Indian Tourism Growth Boosts Demand for Travel Insurance in Schengen Countries

Overview of Increased Travel

In 2025, significant growth in Indian tourism has been observed in several Schengen countries, including Austria, France, Germany, Greece, Italy, Norway, Portugal, Romania, and Spain. This increase is attributed to several factors such as better flight connectivity, a rising interest in unique European experiences, and the growing availability of direct flights to these popular destinations. As Indian travelers explore these countries, the demand for travel insurance has correspondingly surged.

Reasons Behind Insurance Demand

The rise in travel insurance is driven by several concerns among travelers. There are growing anxieties regarding medical emergencies, trip cancellations, and potential flight delays. The increasing number of solo female travelers is also a factor, with many opting for comprehensive travel insurance packages. Such policies typically cover unforeseen disruptions, which provide travelers with peace of mind while visiting unfamiliar places.

Popular Schengen Destinations

The Schengen area includes a diverse range of travel destinations beyond the aforementioned countries, including Belgium, Bulgaria, the Czech Republic, Croatia, Denmark, and more. However, Germany, France, and Switzerland remain the most frequented locations for Indian tourists. Germany particularly appeals to business travelers, contributing to an increased demand for travel insurance tailored to business trips. Meanwhile, Switzerland and the Netherlands are gaining popularity among adventure tourists, leading to a rise in insurance policies that specifically cater to outdoor activities.

Trends Among Female Travelers

Women are increasingly becoming a dominant force in international travel, with a reported 19% rise in trips compared to 13% for men. Solo female travel to Europe continues to grow, prompting many women to seek insurance packages that offer extensive benefits such as trip cancellation coverage, emergency medical care, and flight delay compensation.

Adjusted Policies Due to Visa Concerns

Visa-related issues are also influencing decisions around travel insurance. In 2023, more than 15% of Schengen visa applications from India faced rejection, resulting in an estimated loss of €12.1 million in non-refundable fees. To counter this, approximately 20% of travelers are now opting to include a visa fee refund option in their insurance policies, providing an additional layer of financial protection in cases of visa denial.

Preference for Higher Coverage

There is a recognized shift towards choosing higher coverage in travel insurance. A notable 62% of Indian travelers are now selecting policies valued at $250,000 or more, while senior citizens are opting for plans exceeding $500,000. These policies often include coverage for pre-existing conditions and emergency hospitalizations, reflecting a growing concern over healthcare costs for older travelers.

Peak Times for Insurance Purchases

Travel insurance purchases typically peak between February and April, aligning with the spring and summer travel planning period. During this time, 76% of travelers secure their insurance policies approximately 45 to 50 days before their trips. Millennial and Generation X demographics continue to lead this market, favoring flexible, high-coverage plans suitable for both leisure and business travel.

Conclusion

As Indian tourism to Schengen countries flourishes in 2025, the growing demand for comprehensive travel insurance highlights the need for travelers to prepare for potential disruptions. The emphasis on safeguarding against unexpected events not only ensures protection but also allows travelers to focus on enjoying their journeys across Europe. With such trends evident, travel insurance is expected to remain a critical component of the travel experience for many Indian explorers.