Indonesian travellers are increasingly purchasing travel insurance at the last minute, with a significant 30% buying on the day of travel, according to a new report by Igloo, a leading insurtech firm in Southeast Asia based in Singapore. The report highlights that 92% of these travellers prioritise medical cover over other concerns such as accidental death protection, travel delays, and lost baggage.
The data, drawn from Igloo’s direct-to-consumer platform in Indonesia, reveals that international trips account for 65% of policies sold, with Japan being the top destination at 26%. The report also notes a peak in travel insurance purchases during November and December, coinciding with year-end travel, whilst demand dips in April and May.
Raunak Mehta, Igloo’s Co-founder and CEO, commented on the findings, stating, “Last minute travel insurance purchase tells us people do not plan for travel protection. They buy when something reminds them, usually in the evening, often on the day they travel.”
The report identifies five traveller profiles, with group travellers paying the highest average premium of $45. It also highlights that 41% of customers are repeat buyers, who tend to plan further ahead and spend more per policy.
In response to these trends, Igloo launched Igi, an AI travel insurance assistant, in June 2026. This tool guides users through the entire insurance purchase process, significantly increasing the likelihood of completing a purchase. Despite the recovery in outbound travel post-pandemic, travel insurance remains underpenetrated in Indonesia due to various barriers, which Igloo aims to address with its innovative solutions.
