As the number of Indian students pursuing higher education overseas grows, insurers are expanding and diversifying their offerings to meet the specific needs of this demographic. According to the Ministry of External Affairs, 1.33 million Indian students are studying abroad in 2024. Increased geopolitical risks, such as the Russia-Ukraine war, and high healthcare costs in several countries have highlighted the need for more comprehensive insurance plans tailored for these students.
Diversified Insurance Offerings
Recognizing this opportunity, insurance companies are rolling out products with unique features:
- HDFC Ergo is exploring customizable packages that allow students to add overseas medical coverage, aligning with foreign university mandates.
- Tata AIG launched policies like Travel Guard Plus and Student Guard, which offer protection for two to three years, catering specifically to the needs of international students.
- ICICI Lombard covers a range of needs, including accommodation expenses, return travel costs if advised to leave by authorities, fee reimbursements for study interruptions, bail bond coverage, and more.
Premium Hikes and Customization Options
With heightened risks in regions like Israel, travel insurance premiums have seen a 20-25% increase due to uncertainties such as trip cancellations. HDFC Ergo’s chief underwriting officer, Hiten Kothari, notes that pricing reflects the harsher conditions in such areas.
Indian insurers are also responding to universities’ increasingly stringent insurance requirements, which often demand unlimited coverage or compliance with local regulations like the Affordable Care Act in the U.S. Tata AIG’s vice president, Jaideep Deorukhkar, pointed out that university-provided insurance can be significantly more expensive than Indian alternatives, prompting a push for more flexible and cost-effective solutions from domestic insurers.
Rising Costs Abroad
The rising healthcare costs abroad have intensified the need for better insurance coverage. Nikhil Jain, founder of ForeignAdmits, emphasized concerns over rising expenses, citing the UK’s increased Immigration Health Surcharge for international students—from £705 to £1,164 for a 12-month master’s course. Similar cost hikes have been noted in the U.S. and Canada, where insurance costs have risen by 5-15%.
