Market Analysis and Insights

The estimated size of the global travel insurance market was valued at USD 48.03 billion in 2023 and it is projected to grow at a CAGR of 7.03% to reach USD 96.03 billion by 2033.

Travel Insurance Market Scope:

Market Definition

The purpose of travel insurance is to safeguard people from financial harm and offer support while they are on the road. 

It offers protection against a variety of hazards and crises that could arise before or during a journey. Emergency medical costs, such as hospitalization, doctor visits, prescription drugs, and emergency medical evacuations, are frequently covered by travel insurance. When traveling overseas, this coverage is especially crucial because healthcare expenses there might be much higher.

Travel insurance can help you be compensated for lost, damaged, or stolen luggage and other personal items. This insurance might lessen financial losses and assist in replacing necessities.

Key Market Segmentation

Insights on Capacity

The Single Trip Travel Insurance Segment Valued for the Highest Share

In terms of Insurance Coverage, the single-trip travel insurance market dominated the travel insurance industry in 2021, and it is anticipated that this would be true throughout the anticipated time. Single-trip travel insurance gives you specialised protection against a range of risks, such as emergency repatriation, trip cancellation, local responsibility, illness, accidents, and misplaced luggage.

Insights on Distribution Channel

The highest share was held by the segment of insurance companies.

The insurance companies segment led the market in terms of revenue share in 2021, and it is predicted that it will keep that position throughout the forecast period. Increased risk consolidation across many policyholders and premiums set in accordance with the chance that a given event would occur and result in a typical financial loss are two reasons that have contributed to the expansion of this market sector.

Insights on End User

The Family Traveler Segment Accounted for the Highest Share

The sector is still dominated by family travelers, with business travelers seeing the strongest growth during the predicted period. This is due to increased worldwide commerce, international business expansion, and a rise in corporate travel spending. 

Insights on Region

The APAC Region followed by Europe Accounted for the Highest Share
The travel insurance market in Asia-Pacific has the largest size, and it is anticipated that it will continue to hold that position from 2021 to 2031. This is due to developing countries being more aware of the important benefits of travel insurance, which gives a tremendous chance for this region to grow into one of the world's most important travel insurance markets. In addition, decreased transportation costs across Asia-Pacific have boosted the number of domestic travelers, which also contributes to the market's expansion. Additionally, with over 36.1% of the worldwide market share in 2021, Europe was the largest regional market for travel insurance. Some of the most well-known tourist sites in Europe, including Paris, London, Rome, and Barcelona, are located in this region. Due to this and the high level of disposable income in Europe, there is a significant need for travel insurance there. The UK is the largest market for travel insurance in Europe, accounting for over 25.1% of the regional market. Over the course of the projected period, the UK travel insurance market is anticipated to expand at a CAGR of over 15%. With almost 20.2% of the global market share, the United States is the second-largest travel insurance market in the world. Over the course of the projected period, the US travel insurance market is anticipated to expand at a CAGR of over 13%.

Key Company Profiles

Some key players in the global market are PassportCard, Aviva, AXA, Zurich, Just Travel Cover, American International Group, Inc., Assicurazioni Generali S.P.A., Trailfinders Ltd., Insurefor.com, and Staysure.

COVID-19 Impact and Market Status

The epidemic has made people more aware of the value of having travel insurance. The inherent hazards and uncertainties of travel, such as trip cancellations, medical problems, and interruptions, have come to the attention of travelers. As a result, there is a higher need for travel insurance as tourists look for security and comfort.

The epidemic has forced insurance companies to review and alter their range of coverage options. Numerous insurers have incorporated COVID-19-specific clauses, such as reimbursement for travel cancellations or delays brought on by the virus, emergency medical costs associated with COVID-19 treatment, and costs associated with quarantine. However, coverage and exclusions differ between policies, so before buying insurance, travelers should carefully check the terms and conditions.

The travel business has been severely damaged by travel restrictions, lockdown procedures, and decreased travel trust. Sales of travel insurance have decreased as a result of several travelers cancelling or delaying their travels. A trend towards local and regional travel rather than international travel has also occurred in the sorts of trips that are taken. The need for travel insurance has been impacted by this change in travel habits.

Latest Trends

1. Many travel insurance carriers have established particular coverage for COVID-19-related costs in direct reaction to the pandemic. This can cover things like emergency medical costs for COVID-19 treatment, travel cancellation or interruption coverage, and quarantine-related costs. To meet the particular dangers and issues raised by the virus, insurers are modifying their policies.

2. To accommodate the various demands of travelers, travel insurance providers are providing more flexible and personalized coverage. Travelers may customize their insurance policies to meet their unique needs thanks to choices to add or remove coverage components depending on personal preferences. Travelers now have greater choices over their insurance protection thanks to flexible coverage and policy length options.

3. Digital solutions are being adopted by the travel insurance sector to improve customer service and expedite procedures. Acquiring insurance, getting access to policy details, and making claims, involve having online and mobile platforms and applications available. Travelers may benefit from the ease, effectiveness, and real-time help that digital tools and contactless solutions can offer.

Significant Growth Factors

Demand for travel is rising as travel restrictions loosen and immunization rates rise. People are excited to start taking domestic and foreign travels again. 

As more people travel, there will likely be a rise in the market for travel insurance as people want to insure against unforeseen circumstances.

The COVID-19 epidemic has raised awareness of the dangers of traveling, including the possibility of trip cancellation, unexpected medical expenses, and travel inconveniences. The possible financial damages that travelers may experience in the absence of sufficient insurance coverage are becoming more and more apparent. This enhanced awareness is expected to cause the travel insurance industry to grow.

Due to the pandemic, it is more crucial than ever to travel securely and in good health. Tourists are increasingly looking for travel insurance policies that include coverage for medical expenses, emergency medical evacuations, and other health-related issues. It is projected that the focus on health and safety would increase demand for comprehensive travel insurance coverage.

The market for travel insurance is developing to provide increasingly varied and specialized insurance solutions. Insurance companies provide a variety of flexible coverage choices, including yearly plans for regular travelers, specialized insurance for certain types of travel (such as business or adventure sports), and policies created for certain age groups. The presence of several possibilities will probably encourage market expansion.

Restraining Factors 

The travel insurance industry may be constrained by travelers' price sensitivity. Some travelers can view travel insurance as an extra cost and give other costs linked to vacation priority over insurance coverage. 

To entice budget-conscious travelers, insurers must strike a balance between delivering comprehensive coverage and cheap prices. If they have never had major travel crises or inconveniences, some travelers might wonder what use travel insurance is. 

The market growth may be constrained by people's hesitation to get travel insurance due to their belief in the low likelihood of certain occurrences occurring. This view may be changed, and the significance of travel insurance can be emphasized, through education and communication initiatives.

Recent Developments in the Global Travel Insurance Market: A Snapshot

• In September 2022, the Dow Jones Sustainability Index will name Allianz a Sustainable Insurer. The DJSI (Dow Jones Sustainability Index) is one of the most used tools for evaluating sustainability. Due to the accuracy of the grading system and the importance of the index to investors, Allianz joined the DJSI many years ago.

• In July 2022, Zurich Insurance Group (Zurich) forged a relationship with Polar Electro, a developer of wearable sports, heart rate, and health solutions. Customers of both companies will now have access to services that will assist them in meeting their health and wellness goals. The relationship will begin with Brazil, Spain, the UK, Italy, Portugal, and Ireland, and will eventually be expanded to other countries where Polar and LiveWell have operations.

Key Segments of the Travel Insurance Market

Insurance Cover Overview
• Single-Trip Travel Insurance
• Annual Multi-Trip Travel Insurance
• Long-Stay Travel Insurance

Distribution Channel Overview
• Insurance Intermediaries
• Insurance Companies
• Banks
• Insurance Brokers
• Insurance Aggregators

End-User Overview
• Senior Citizens
• Education Travelers
• Business Travelers
• Family Travelers
• Others

Regional Overview

North America
• U.S
• Canada
Europe
• Germany
• France
• UK
• Rest of Europe
Asia Pacific
• China
• India
• Japan
• Rest of Asia Pacific
South America
• Mexico
• Brazil
• Rest of South America