The increasing global tourism along with growing travel rules and regulations within the travel industry, drives the demand for the travel insurance market
The global travel insurance market size is expected to be valued at more than USD 40 billion by 2028 owing to increasing levels of tourism globally. The global tourist arrivals reached approximately 13 billion in 2018.
Tourism has become the largest component of international trade in services, constituting 25% of total share. Thus, tourism growth has provided an impetus to travel insurance companies to capitalize on the rising demand for insurance among travellers. The rising awareness amongst young travellers regarding the need to secure their travel against medical and non-medical contingencies is a major factor driving the growth of global travel insurance industry.
Insurance providers are increasing their value-added services to achieve product differentiation from their competitors and to maintain better customer relationships. Recent market trends include the usage of data analytics to predict risks and formulate precise contingency plans. For instance, insurers can monitor weather conditions and notify their customers in advance, so that they can plan their trips accordingly. Such travel insurance industry trends are majorly being adopted by travel insurance providers located in the U.S. The U.S. travel insurance market size is estimated to cross USD 10 bn mark by the end of 2028.
On the basis of type, the medical expense segment is anticipated to witness the highest growth during the forecast period. Medical expense coverage is crucial since it covers the cost of emergency treatment as well as any other overhead cost occurring at the time of travel. The uncertainty while travelling to foreign lands can pose health hazards and therefore, many countries have made travel insurance mandatory to issue VISA.
Geographically, Asia Pacific held the largest share in global travel insurance market. This has been attributed to the high demand for corporate travel insurance from countries such as China, Japan and Korea. The growing segment of travellers in countries such as India is providing tremendous opportunities to insurance companies and travel agencies to tap into. However, in terms of growth rate, Latin America is expected to exhibit the highest growth of 8.8% over the forecast period. Travel insurance is gaining popularity in several developing countries of Europe. UK travel insurance market share is expected to witness a decrease due to decline in the number of travellers.
Companies including 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 Limited amongst others have a broader presence within the global market.
Segment Overview of 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