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November 3, 2025 | Blog | 4 minutes

Festivals and Insurance: Balancing Celebration, Risk, and Opportunity

Priyanka Tomar

Every year, as cities light up with festive colours — from Diwali diyas and Ganesh idols in India to Thanksgiving feasts in the US, Christmas lights in New York, Eid festivities in Dubai, and lanterns during the Lunar New Year — something fascinating happens in the insurance world. Beneath the joy, travel, and spending, there’s a quiet rhythm of numbers, claims, and policies that moves in sync with the season’s celebrations.

For insurers, the festive season is not just a cultural event — it’s an economic pulse point. It brings a unique blend of heightened optimism and heightened risk, creating a perfect moment for innovation, empathy, and strategic engagement.

The Season of Spending and Safeguarding

Festivals have always been times of indulgence — new vehicles, home renovations, jewellery purchases, and family vacations. Across markets, this translates into a surge in insurance activity.

In India, vehicle and two-wheeler sales traditionally rise by nearly 25–30% during the festive quarter, driven by Diwali and Dussehra offers.
In the West, the Christmas and New Year period often sees a similar spike in property, travel, and gadget insurance purchases as consumers invest in new assets.
Across Asia and the Middle East, spending surges around Lunar New Year and Eid, driven by gift-giving, travel, and home upgrades.

For insurers, this period opens the door to both customer acquisition and education. As people buy more, they are also more open to conversations about protection. A family purchasing a new car during Diwali or upgrading their home in December is not just making a purchase — they’re building a story of progress that insurance quietly safeguards.

The question for insurers is: Are we present at that moment of aspiration?

The Other Side of Celebration: Rising Risk

With celebration comes activity — and with activity comes risk.
During festivals, travel increases, roads are busier, health issues rise due to seasonal changes or overindulgence, and homes may remain unattended during vacations.

Globally, insurers observe patterns such as:

  • Increased motor accident claims during major festivals due to traffic surges.

  • Health and hospitalization claims rising around holidays.

  • Home and fire-related claims caused by decorative lights, fireworks, or unattended cooking.

In India, fire and accident-related claims tend to rise during Diwali, while health insurers in colder regions like Europe and North America see a spike in claims for respiratory illnesses during the holiday season.

So, while consumers celebrate, insurers are quietly on alert — preparing for claim volume spikes and ensuring systems can handle the surge without compromising customer experience.

From Policy Sellers to Festival Partners

The modern insurer is no longer just a policy seller — they are a lifestyle enabler.
Festival seasons offer a rare opportunity to connect emotionally with customers. It’s when insurance marketing shifts from risk avoidance to celebrating security and togetherness.

Leading insurers have started crafting festival-specific campaigns that focus on protection with positivity, such as:

  • “Protect the light in your home this Diwali” — linking emotional well-being with home insurance.

  • “Drive safe this Christmas — let’s keep the roads merry” — promoting responsible behaviour.

  • “Celebrate colour, not chaos, this Holi” — reminding people to enjoy responsibly.

  • “Keep gratitude safe this Thanksgiving” — emphasizing family and protection as shared values.

These aren’t just marketing lines — they are bridges between a technical product and a human emotion. When done authentically, they build long-term trust beyond transactions.

The Surge Behind the Scenes

While consumers see discounts and offers, another story unfolds inside insurance offices. The festive season means:

  • A sudden rise in policy issuance and renewals.

  • Operational pressure on underwriting and claims teams.

  • Increased fraud attempts or opportunistic claims.

Forward-thinking insurers are turning to AI, predictive analytics, and automation to manage this complexity. For instance:

  • Predictive analytics can forecast claim volume by region or product, helping allocate resources in advance.

  • AI-driven claim triaging can separate low-risk, fast-track claims from those requiring manual review.

The result? A smoother, faster, and more empathetic experience — one that matches the festive spirit of optimism and care.

Conclusion

Festivals remind us of joy, connection, and renewal — values that mirror what insurance stands for at its core: protection and peace of mind.

When insurers align their strategies with the spirit of celebration, they don’t just manage risk — they become partners in their customers’ stories of progress and prosperity.