Europe Travel Insurance Market Overview:
Europe Travel Insurance Market is estimated to reach $7,583 million by 2023, growing at a CAGR of 5.9% from 2016 to 2022. Travel insurance provides protection against an unexpected medical cost and the number of risks faced by travelers. Governments of various countries and insurance regulatory bodies are taking initiatives to create awareness related to travel insurance. Moreover, various accessible channel provides an ease in having a travel insurance cover which is expected to create a demand in the Europe travel insurance market.
The Europe travel insurance market is segmented based on distribution channel, insurance cover, end user, and geography. Distribution channel is segmented on the basis of insurance intermediaries, insurance company, bank, insurance broker, insurance aggregator, and others. For insurance cover, it is categorized into single trip, annual multi-trip, and long stay. Based on end user, it is classified into senior citizens, educational traveler, backpackers, business traveler, family traveler, and fully independent traveler. Geographically, it is analyzed across UK, Germany, France, Spain, Italy, Netherlands, Switzerland, Austria, and Rest of Europe.
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Source: Primary Research, Secondary Research, and AMR Analysis
End User is the most Focused Segment
Family traveler and senior citizens are expected to be the most focused cluster among the end user segment, as they travel for longer period of trips and mostly travel in groups. Therefore, they are more concerned towards having a cover during their travel to have a secure journey. The family traveler accounts for relatively high market share in Europe travel insurance market owing to the rising trend of group traveling in the European region which is expected to increase the demand of travel insurance policy. It has been observed that business traveler is gaining market share in the Europe travel insurance market due to the rising cross border business to avail advanced resources and better technology. Apart from this, the growing trend of foreign education is expected to create a demand for travel insurance among educational travelers
UK creates the Huge Opportunity
UK accounts for more than 27% market share of the Europe travel insurance market, wherein tour agencies and travel suppliers, such as tour operators and cruise lines are responsible for the major sale of travel insurance policies. It has been observed that travel insurance coupled with the total cost of the holiday is the most popular type of travel insurance policy purchased in the country. Only 4.7% of insured individuals have purchased the basic travel insurance, which indicates that the major proportion of individuals not only prefer security of themselves and their belongings, but also the cost of the entire trip. Moreover, the travel insurance market in the UK witnessed a shift toward annual policies over single-trip cover, owing to the increase in number of trips in a year by the rise in travel trend in baby boomers. In addition, the annual policies are often bundled with other products such as mobile phone insurance or breakdown cover, to provide extra benefit along with travel cover.
Furthermore, the process of Brexit is expected to provide a major opportunity for the travel insurance market, as the majority of UK travelers who travel Europe rely on EHIC instead of purchasing a travel insurance policy. Moreover, the growth of the Europe travel insurance market is largely subject to the rise of family travelers, who opt to travel for a long weekend trip and try to secure their travel from various concerns related to theft, health hazards, terrorism, and others.
Increasing Travel Rule and Regulation
Countries such as UK, Germany, France, etc, are adopting travel insurance as a prerequisite for obtaining VISA. This provision exists to ensure that travelers are adequately covered in case of medical emergencies owing to high medical costs and hospitalization fees in visiting countries. In addition to this, in the event of repatriation, travel insurance cover the incurred cost. Moreover, the citizens of Europe have an added advantage to travel a Schengen area, which comprises of 26 countries of Europe, with Schengen VISA, wherein travel insurance policy is act as a minimum requirement to obtain a visa letter for the process of Schengen VISA. This precondition by authorities to have travel health insurance is a major driver for the Europe travel insurance market.
- A comprehensive analysis of the current trends and future estimations in the market are provided.
- The report elucidates on key drivers, restraints, and opportunities and a detailed impact analysis from 2016 to 2023.
- Porters Five Forces model of the industry illustrates the potency of the buyers and suppliers in the market.
- A quantitative analysis of the current scenario and the forecast period highlights the financial competency of the market.
- The report provides a detailed analysis of the market with respect to distribution channel, insurance cover, end user, and geography.
Europe Travel Insurance Market Key Segments:
By Distribution Channel
- Insurance Intermediaries
- Insurance Company
- Insurance Broker
- Insurance Aggregators
By Insurance Cover
- Single Trip
- Annual Multi-trip
- Long Stay
By End User
- Senior Citizens
- Education Travelers
- Business Travelers
- Family Travelers
- Fully Independent Traveler
- Rest of Europe
Key Players in the Value Chain
- Generali Group (Italy)
- Allianz Group (France)
- AXA Group (France)
- Insure and Go Insurance Services Limited (UK)
- The April Group (France)
- Mutuaide Assistance (France)
- Aon Plc (UK)
- Aviva Plc (UK)
- Saga Plc (UK)
- Atlas Travel Insurance Services Ltd (England)
- European Travel Insurance Group (Netherlands),
- InsuranceLine.gr (Greece),
- Alc Travel (UK),
- Staysure Limited (UK)
- ETA services (UK)