Travel insurance purchases for offbeat destinations have witnessed a significant uptick, rising by 45% over the past 2-3 years. This trend is driven by Indian travelers seeking unique experiences beyond traditional tourist hotspots.

Destination Highlights

Seychelles has emerged as the frontrunner in this trend, recording an impressive 115% year-on-year growth. Following closely, Vietnam experienced a 50% increase in travel insurance purchases. Other popular offbeat destinations gaining traction among Indian travelers include the Philippines, Sri Lanka, Kenya, and Fiji.

Market Share and Demographics

Offbeat destinations now represent 11% of total travel insurance volumes, indicating a growing interest in exploring less-traveled locations. The demographic driving this trend is predominantly young adults, with travelers aged 25-35 accounting for 44% of offbeat travel insurance purchases.

Insurance Preferences

Many travelers opting for these unique destinations are choosing comprehensive coverage:

• Policies covering $1 lakh or more are popular
• Adventure sports add-ons are frequently selected

Trip Duration and Seasonality

Interestingly, trips to offbeat destinations tend to be shorter compared to mainstream locations:

The peak travel season for these unique getaways occurs during the October-March period.

Post-Pandemic Surge

The appetite for exploring offbeat destinations has grown significantly in the post-pandemic era. Insurance purchases for these unconventional travel spots have risen by over 50% since the lifting of COVID-19 restrictions.

This surge in travel insurance for offbeat destinations reflects a changing landscape in Indian travel preferences, with more adventurers seeking unique experiences and ensuring they're well-protected during their journeys.

PB Fintech , the parent company of Policybazaar and Paisabazaar, has reported robust financial results for the first quarter, showcasing significant growth in insurance premiums and improved profitability.

Key Highlights

Strong Performance in Insurance Segment

PB Fintech's insurance business demonstrated impressive growth, with total premiums reaching ₹6,616.00 crores, a 36% increase compared to the same quarter last year. The health insurance segment was particularly strong, growing by 65% year-on-year. This growth was primarily driven by new customers, with 82% of new business coming from first-time insurance buyers.

The company's core insurance revenue increased by 37%, reflecting the strong performance in this segment. Renewal and trail revenue on a rolling 12-month basis reached ₹725.00 crores, up 43% from the previous year, indicating strong customer retention and recurring revenue growth.

Improved Profitability

PB Fintech's focus on sustainable growth is reflected in its improved profitability metrics. The company's consolidated profit after tax increased significantly from ₹19.00 crores to ₹85.00 crores, with margins expanding from 2% to 6%. This improvement in profitability comes despite the company's continued investments in growth initiatives.

Challenges in Credit Business

While the insurance segment showed strong growth, the credit business faced challenges. Revenue in this segment declined by 22% year-on-year to ₹102.00 crores, amid industry-wide tightening. However, the company remains committed to improving this segment and expects growth to resume from the third quarter.

New Initiatives and International Expansion

PB Fintech's new initiatives showed improvement, with adjusted EBITDA margins moving from -12% to -6%. The company's UAE business achieved profitability for two consecutive quarters, growing at 68% year-on-year.

Long-term Vision

Despite short-term challenges in some segments, PB Fintech's management emphasized their focus on long-term growth. The company maintains its target of achieving ₹1 lakh crore in insurance premiums by 2030, highlighting its commitment to expanding insurance penetration in India.

Yashish Dahiya, Chairman & Group CEO of PB Fintech, commented on the results, saying, "Our team's continued focus on what is right for the consumer, while delivering on our plans, has been instrumental in achieving these strong results. We are particularly encouraged by the growth in our health insurance segment and the improving profitability of our new initiatives."

As PB Fintech continues to innovate and expand its offerings, including potential forays into mutual funds and other financial products, the company appears well-positioned to capitalize on the growing demand for digital financial services in India.