Global Travel Insurance Market Size 2017 by Type (Medical Expenses, Trip Cancellation, Trip Delay, Property Damage), by Application (Domestic Travel, International Travel), by Distribution Channel ( Direct Sales, Airlines, Online Travel Agencies, Local Travel Agencies, Marine, Railway and Bus Terminals, Banks and Credit Cards), by Type of Travel (Business Travel, Leisure Travel), by Region and Forecast 2018 to 2025
Apr 2019
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The global travel Insurance market was valued at USD 18.9 billion in 2017 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.
.png "Global Travel Insurance Market Value, By Region, 2015 – 2025 (USD Billion)")
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.
Key segments of the global travel insurance market
Type Overview, 2015-2025 (USD Million)
- Medical Expenses
- Trip Cancellation
- Trip Delay
- Property Damages
Application Overview, 2015-2025 (USD Million)
- Domestic Travel
- Outbound Travel
Type of Travel Overview, 2015-2025 (USD Million)
- Business Travel
- Leisure Travel
Regional Overview, 2015-2025 (USD Million)
- North America
- U.S.
- Rest of North America (Canada)
- Europe
- Spain
- UK
- Ireland
- Italy
- France
- Germany
- Rest of Europe
- Asia-Pacific
- Australia
- India
- South Korea
- Japan
- Rest of Asia-Pacific
- Latin America
- Brazil
- Mexico
- Chile
- Argentina
-
- Rest of Latin America
- Middle East & Africa
- Kuwait
- Qatar
- Bahrain
- Oman
- Rest of Middle East & Africa
Reasons for the study
- This study covers various segment details of travel insurance industry and gives an extensive outlook of the global travel insurance market.
- Rising demand for insurance especially in business travel paves a way for growth of the travel insurance market that is helping the travel insurance market to significantly grow.
- Improved demand for travel insurance and growth of end-use industries is driving the growth of the travel insurance market.
What does the report include?
- The study comprises of key trends, major drives and challenges/ restraints of the global travel insurance market
- The market has been analyzed using the PESTEL and Value Chain Analysis. Also evaluated using Porter’s five forces analysis and vendor landscape.
- Segmentation by type, application, type of travel and distribution channel is provided with its regional shares.
- The market estimates provide detailed market size and its forecasts for the above mentioned segments.
- The study includes the company profiles of major players in this market.
Who should buy this report?
The report will benefit:
- Various travel insurance providers that will help them understand the impact of end-user applications on this market.
- Financier or venture capitalists who are looking to invest capital in this market.
- The report will help manufacturers and also suppliers of the market.
- Government aided institutions looking for transformation and innovation in this market.
- The strategic decision makers, analysts and educational institutions will be benefited by this report.
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.
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.
In the type of travel category, business travel accounted for the largest share in 2017. 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. Asia-Pacific conquered the market generating revenues of more than USD 8.5 billion in 2017, followed by North America with revenues nearly USD 5.6 billion in the same year.
The global travel Insurance market was valued at USD 18.9 billion in 2017 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.
Key segments of the global travel insurance market
Type Overview, 2015-2025 (USD Million)
- Medical Expenses
- Trip Cancellation
- Trip Delay
- Property Damages
Application Overview, 2015-2025 (USD Million)
- Domestic Travel
- Outbound Travel
Type of Travel Overview, 2015-2025 (USD Million)
- Business Travel
- Leisure Travel
Regional Overview, 2015-2025 (USD Million)
- North America
- U.S.
- Rest of North America (Canada)
- Europe
- Spain
- UK
- Ireland
- Italy
- France
- Germany
- Rest of Europe
- Asia-Pacific
- Australia
- India
- South Korea
- Japan
- Rest of Asia-Pacific
- Latin America
- Brazil
- Mexico
- Chile
- Argentina
-
- Rest of Latin America
- Middle East & Africa
- Kuwait
- Qatar
- Bahrain
- Oman
- Rest of Middle East & Africa
Reasons for the study
- This study covers various segment details of travel insurance industry and gives an extensive outlook of the global travel insurance market.
- Rising demand for insurance especially in business travel paves a way for growth of the travel insurance market that is helping the travel insurance market to significantly grow.
- Improved demand for travel insurance and growth of end-use industries is driving the growth of the travel insurance market.
What does the report include?
- The study comprises of key trends, major drives and challenges/ restraints of the global travel insurance market
- The market has been analyzed using the PESTEL and Value Chain Analysis. Also evaluated using Porter’s five forces analysis and vendor landscape.
- Segmentation by type, application, type of travel and distribution channel is provided with its regional shares.
- The market estimates provide detailed market size and its forecasts for the above mentioned segments.
- The study includes the company profiles of major players in this market.
Who should buy this report?
The report will benefit:
- Various travel insurance providers that will help them understand the impact of end-user applications on this market.
- Financier or venture capitalists who are looking to invest capital in this market.
- The report will help manufacturers and also suppliers of the market.
- Government aided institutions looking for transformation and innovation in this market.
- The strategic decision makers, analysts and educational institutions will be benefited by this report.
Chapter 1 Research Methodology
1.1 Research approach
1.1.1 Research Programs/Design
1.2 Scope and assumptions
1.3 Data sources
Chapter 2 Executive Summary
Chapter 3 Market Outlook
3.1 Top Player Positioning
3.1.1 Global Travel Insurance Providers
3.2 Top Winning Strategies
3.2.1 Global Travel Insurance Providers
3.3 Top Investment Pockets
3.3.1 Region-wise/Country-wise
3.4 PEST Analysis
3.5 Market Dynamics
3.5.1 Drivers
3.5.1.1 Rise in global tourism
3.5.1.2 Increasing travel rules and regulations
3.5.1.3 Increase in baby boomer travel
3.5.2 Restraints
3.5.2.1 Low penetration of insurance policies
3.5.2.2 Lack of knowledge and misguidance
3.5.3 Opportunity
3.5.3.1 Technological developments in the travel insurance industry
3.6 Key questions to be answered
3.6.1 How are millennials affecting the global travel insurance market?
3.6.2 How is the revolution in transportation industry affecting the travel insurance market?
3.6.3 What steps are the major travel insurance providers taking to cater to consumers globally?
3.6.4 What are the major benefits of travel insurance attracting customers of different countries?
Chapter 4 Travel Insurance Type Overview
4.1 Global Travel Insurance Market share, by type, 2017 & 2025
4.2 Medical Expenses
4.2.1 Global travel insurance market for medical expenses, 2015-2025
4.3 Trip Cancellation
4.3.1 Global travel insurance market for trip cancellation, 2015-2025
4.4 Trip Delay
4.4.1 Global travel insurance market for trip delay, 2015-2025
4.5 Property Damage
4.5.1 Global travel insurance market for property damage, 2015-2025
Chapter 5 Travel Insurance Application Overview
5.1 Global travel insurance market share, by application, 2017 & 2025
5.2 Domestic Travel
5.2.1 Global domestic travel insurance market, 2015-2025
5.3 International Travel
5.3.1 Global international travel insurance market, 2015-2025
Chapter 6 Travel Insurance Type of Travel Overview
6.1 Global travel insurance market share, by type of travel, 2017 & 2025
6.2 Business Travel
6.2.1 Global business travel insurance market, 2015-2025
6.3 Leisure Travel
6.3.1 Global leisure travel insurance market, 2015-2025
Chapter 7 Travel Insurance Regional Overview
7.1 Global travel insurance market share, by region, 2017 & 2025
7.2 North America
7.2.1 North America travel insurance market, 2015-2025
7.2.2 North America travel insurance market, by type, 2015-2025
7.2.3 North America travel insurance market, by application, 2015-2025
7.2.4 North America travel insurance market, by type of travel, 2015-2025
7.2.5 U.S.
7.2.6 Canada
7.3 Europe
7.3.1 Europe travel insurance market, 2015-2025
7.3.2 Europe travel insurance market, by type, 2015-2025
7.3.3 Europe travel insurance market, by application, 2015-2025
7.3.4 Europe travel insurance market, by type of travel, 2015-2025
7.3.5 Spain
7.3.6 UK
7.3.7 Italy
7.3.8 Germany
7.3.9 Rest of Europe
7.4 Asia Pacific
7.4.1 Asia Pacific travel insurance market, 2015-2025
7.4.2 Asia Pacific travel insurance market, by type, 2015-2025
7.4.3 Asia Pacific travel insurance market, by application, 2015-2025
7.4.4 Asia Pacific travel insurance market, by type of travel, 2015-2025
7.4.5 China
7.4.6 India
7.4.7 Japan
7.4.8 Australia
7.4.9 Rest of Asia-Pacific
7.5 Middle East & Africa
7.5.1 Middle East & Africa travel insurance market, 2015-2025 (USD Million)
7.5.2 Middle East & Africa travel insurance market, by type, 2015-2025
7.5.3 Middle East & Africa travel insurance market, by application, 2015-2025
7.5.4 Middle East & Africa travel insurance market, by type of travel, 2015-2025
7.5.5 GCC
7.5.6 South Africa
7.5.7 Rest of Middle East and Africa
7.6 Central & South America
7.6.1 Central & South America travel insurance market, 2015-2025
7.6.2 Central & South America travel insurance market, by type, 2015-2025
7.6.3 Central & South America travel insurance market, by application, 2015-2025
7.6.4 Central & South America travel insurance market, by type of travel, 2015-2025
7.6.5 Mexico
7.6.6 Brazil
7.6.7 Rest of Central & South America
Chapter 8 Industry Structure
8.1 Competitive landscape, 2017
Chapter 9 Company Profiles
9.1 Allianz SE
9.1.1 Company overview
9.1.2 Product portfolio
9.1.3 Financial performance
9.1.4 Recent initiatives
9.2 Munich Reinsurance America, Inc.
9.2.1 Company overview
9.2.2 Product portfolio
9.3 American Express Company
9.3.1 Company overview
9.3.2 Product portfolio
9.3.3 Financial performance
9.3.4 Recent initiatives
9.4 Travelex Insurance Services
9.4.1 Company overview
9.4.2 Financial performance
9.4.3 Product portfolio
9.4.4 Recent initiatives
9.5 Atlas Travel Insurance Services Ltd.
9.5.1 Company overview
9.5.2 Product portfolio
9.5.3 Recent initiatives
9.6 Aviva PLC
9.6.1 Company overview
9.6.2 Product portfolio
9.6.3 Financial performance
9.6.4 Recent initiatives
9.7 Saga Plc
9.7.1 Company overview
9.7.2 Product portfolio
9.7.3 Financial performance
9.7.4 Recent initiatives
9.8 Bajaj Finserv Limited
9.8.1 Company overview
9.8.2 Product portfolio
9.8.3 Financial performance
9.8.4 Recent initiatives
9.9 China Pacific Life Insurance Co., Ltd.
9.9.1 Company overview
9.9.2 Product portfolio
9.9.3 Financial performance
9.9.4 Recent initiatives
9.10 MS&AD Insurance Group Holdings, Inc.
9.10.1 Company overview
9.10.2 Product portfolio
9.10.3 Financial performance
9.10.4 Recent initiatives
9.11 Munich Reinsurance Company
9.11.1 Company overview
9.11.2 Financial performance
9.11.3 Product portfolio
9.11.4 Recent initiatives
9.12 Ping An Insurance Company of China, Ltd.
9.12.1 Company overview
9.12.2 Product portfolio
9.12.3 Financial performance
9.12.4 Recent initiatives
9.13 China Life Insurance Company Limited.
9.13.1 Company overview
9.13.2 Product portfolio
9.13.3 Financial performance
9.13.4 Recent initiatives
9.14 MAPFRE Insurance Company Inc.
9.14.1 Company overview
9.14.2 Product portfolio
9.14.3 Financial performance
9.14.4 Recent initiatives
9.15 Prudential Financial Inc.
9.15.1 Company overview
9.15.2 Product portfolio
9.15.3 Financial performance
9.16 Chubb Limited
9.16.1 Company overview
9.16.2 Product portfolio
9.16.3 Financial performance
9.16.4 Recent initiatives
Chapter 10 Future Outlook of the Market
Chapter 11 Conclusions and Recommendations