The global travel Insurance market was valued at USD 21 billion in 2019 driven by range of risks associated with travel, medical expenses, loss or theft of personal possessions, personal liability and legal expenses. However, medical expenses is a driving factor to travel insurers due to its larger costs, with increasing cost of cancellations.
The major reason for growth of this market is the increasing globalization that has reinforced evolution in the travel market. The aging population purchase the most travel insurance, primarily for international trips that boosts the revenue for travel insurance industry. The consumers are more subtle towards protecting their travel investments due to higher risks of flight cancellations and delays. Also, the factors related to severity of natural disasters in few regions has also prompted the consumers to opt for travel insurance. The increase in number of trips or tours by the US residents is expected to raise over the years due to the defeat of Brexit deal in turn revenues for this industry will increase. Progressing disposable income levels and favorable and sustainable globalization trends will be a significant factor in driving revenue to the travel insurance market.
The travel insurers enjoy good margins with the cancellation costs that include medical expenses, trip cancellation, trip delay and other factors. Wherein the medical expenses holds a major share in the market. A travel insurance has mainly three types of policies that include a single trip policy, an annual multi trip policy and a long-term policy in which a single- trip policy is most often opted by the consumers. Reason being the consumer preference who have a wide range of preference with respect to how many times they wish to travel. Many travel providers offer travel insurance as an integrated part of the travel purchase. Consumers prefer the integrated part for further avoiding the need to enter any additional payment steps or personal information and also the transaction being easy to complete.
Travel Insurance Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 40 billion|
|Segment Covered||Type, Application, Distribution, Type of Trave, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East & Africa|
|Key Players Profiled||Allianz SE, Munich Reinsurance America, Inc., American Express Company, Travelex Insurance Services, Atlas Travel Insurance Services Ltd, Aviva PLC, Saga Plc, Bajaj Finserv Limited, China Pacific Life Insurance Co., Ltd., MS&AD Insurance Group Holdings, Inc., Munich Reinsurance Company, Ping An Insurance Company of China, Ltd., China Life Insurance Company Limited., MAPFRE Insurance Company Inc., Prudential Financial Inc., and Chubb|
Key Segments of the Global Travel Insurance Market
Type Overview, 2018-2028 (USD Billion)
- Medical Expenses
- Trip Cancellation
- Trip Delay
- Property Damages
Application Overview, 2018-2028 (USD Billion)
- Domestic Travel
- Outbound Travel
Distribution Channel, 2018-2028 (USD Billion)
- Direct Sales
- Online Travel Agencies
- Local Travel Agencies
- Marine, Railway and Bus Terminals
- Banks and Credit Cards
Type of Travel Overview, 2018-2028 (USD Billion)
- Business Travel
- Leisure Travel
Regional Overview, 2018-2028 (USD Billion)
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia-Pacific
- Middle East and Africa
- South Africa
- Rest of Middle East and Africa
- South America
- Rest of South America
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the global travel insurance market. Benchmark yourself against the rest of the market.
- Ensure you remain competitive as innovations by existing key players to boost the market.
What does the report include?
- The study on the global travel insurance market includes qualitative factors such as drivers, restraints, and opportunities
- The study covers the competitive landscape of existing/prospective players in the travel insurance solution industry and their strategic initiatives for the product development
- The study covers a qualitative and quantitative analysis of the market segmented based on type, application, and type of travel. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the above-mentioned segments.
Who should buy this report?
- This study is suitable for industry participants and stakeholders in the global travel insurance market. The report will benefit:
- Every stakeholder involved in the travel insurance market.
- Managers within the Tech companies looking to publish recent and forecasted statistics about the global travel insurance market.
- Government organizations, regulatory authorities, policymakers, and organizations looking for investments in trends of the global travel insurance market.
- Analysts, researchers, educators, strategy managers, and academic institutions looking for insights into the market to determine future strategies.
Frequently Asked Questions (FAQ) :
With consumers being more itinerant today, travel & tourism has become a putative part of business, personal and academic life. This is exposing both individuals and businesses to new financial risks with each trip. Travel insurance is a distinct type of insurance intended to cover medical expenses, financial default, trip delays and a wide range of other financial losses which can be incurred while traveling internationally or domestically.
The Travel Revolution
The travel industry is has drastically changed when compared to the way it was a couple of decades ago. The introduction of online travel options, advent of low cost airlines and budget hotels has totally changed the way consumers make their reservations, purchase their tickets and plan their travel itinerary. Traveling has turned out to be an integral part of the human experience, especially the experience hungry millennials. In 2013, more than one billion travelers traversed international borders for the first time not because of a humanitarian crisis or a war; it was in a search of experiencing something new to satisfy their curiosities.
Nowadays, travelers have numerous options when it comes to booking, planning and managing travel itineraries. There are several consumer touch points which travel insurance companies, hospitality and travel businesses can leverage. These include transportation/airfare, cultural activities, social activities, accommodations, dining, local excursions and the list goes on.
Travel insurance companies and tourism businesses need to increase their visibility online. More than 75% of millennials use travel applications on their smartphones, thus businesses have to do well to capitalize mobile platforms. Rising number of millennials looking for experiencing their travel in other countries, increasing disposable incomes, decreasing flight rates, easy payment options as well as rising tourism promotion activities are some major factors driving the travel insurance market growth.
Considering the types of travel insurance, medical expenses segment dominated the market with a share of more than 30%. Increasing number of medical casualties, increasing number of baby boomer travelers as well as rising number of insurers providing easy medical travel insurance are some key factors driving the growth of this segment. Trip delay is another key segment in the global travel insurance market owing to increasing number of trips being delayed. Bad weather, technical faults and other contingencies case the trip to delay. Trip delays are increasing due to increasing air traffic as well as rising number of tourists. This segment is expected to foresee the fastest growth of 8.3% over the forecast period.
Distribution Channel Segment
Focusing on the sales channel, direct sales segment occupied the biggest chunk of the pie due to increasing number of travelers opting for travel insurance policies directly from the insurance providers. However, the airlines segment is anticipated to witness the fastest growth owing to ease of purchase as well as on-the-go buying options. Several airlines have started to sell travel insurance policies to their on-board passengers. This trend is expected to witness a significant rise over the foreseeable years and hence is the fastest CAGR.
Type of Travel Segment
In the type of travel category, business travel accounted for the largest share in 2019. This is mainly due to increasing interest of companies in procuring travel insurance policies for their employees. Most of the business travelers are more inclined towards making their travel safe. Also, increasing globalization and increasing trade across the globe are some major aspects driving the business segment.
In terms of geographical divergence, Asia-Pacific and North America are highly mature regions and account for nearly three-fourths of the overall travel insurance revenue. Latin America is expected to be the most lucrative region. By 2030, Latin America is projected to surpass 81 million international travelers. These travelers incline to spend a considerable amount of money and mostly travel in groups. In 2014, 20% of these travelers planned and booked their itinerary online which is highlighting the opportunity for travel insurance providers. Additionally, increasing number of attractive tourist destinations coupled with increase in the number of tech savvy travelers with huge travel spending fuel the overall demand for travel insurance in Latin America. The Latin America travel insurance market is expected to foresee the fastest growth of 8.8% over the forecast period. Although, the provider capabilities to assist multifaceted client needs in Asia-Pacific is relatively high.
The major players of the global travel insurance market are Allianz SE, Munich Reinsurance America, Inc., American Express Company, Travelex Insurance Services, Atlas Travel Insurance Services Ltd., Aviva PLC, Saga Plc, Bajaj Finserv Limited, China Pacific Life Insurance Co., Ltd., MS&AD Insurance Group Holdings, Inc., Munich Reinsurance Company, among other. The travel insurance solution market is fragmented with the existence of well-known global and domestic players across the globe.