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2020

Europe Travel Insurance Market

Europe Travel Insurance Market Size, Share, Competitive Landscape and Trend Analysis Report by Insurance Cover, Distribution Channel and End User : Regional Opportunity Analysis and Industry Forecast, 2020-2027

BI : Insurance

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Author's: Aarti Goswami| Pramod Borasi | Onkar Sumant
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Europe Travel Insurance Market Outlook – 2027 

The Europe travel insurance market size was valued at $6.25 billion in 2019 and is projected to reach $10.39 billion by 2027, growing at a CAGR of 14.4% from 2020 to 2027. Travel insurance covers the expenses incurred and minimizes the risks during travel. It acts as a cushion in situations such as trip cancellation due to medical emergency, loss of baggage, evacuation due to medical condition or hijack, and loss of travel documents, among others. 

Several intermediaries in distribution channel such as insurance aggregators, banks, insurance brokers providing consumers with various options to compare products and prices, suggest suitable policies, and others. In addition, travel insurance providers in the region offer different plans by covering costs and losses depending on coverages in the policy. 

Europe Travel Insurance Market

Mandatory rules & regulations imposed by the government have urged the consumers to avail travel insurance as a prerequisite for obtaining VISA, which is expected to drive the growth of Europe travel insurance market. In addition, increase in tourism led to several incidences such as trip cancellations, loss of luggage & important documents, medical emergencies, and others take place. To mitigate these risks, consumers opt for travel insurance, which is a significant driving factor for the Europe travel insurance market

However, lack of understanding & awareness regarding travel insurance coverages and low penetration level & fewer written policies of travel insurance are some of factors limit the growth of Europe travel insurance premium in the market. On the contrary, insurers in the region are expected to enhance existing distribution platforms of travel insurance to accelerate productivity with the help of technologies such as geo-location, application program interface (API), artificial intelligence (AI), data analytics, and global positioning system (GPS), among others. As a result, these factors are expected to create lucrative opportunity for the Europe travel insurance market in the upcoming years.

The insurance intermediaries sector dominated the Europe travel insurance industry in 2019 and is projected to maintain its dominance during the forecast period. Due to several intermediaries upgrading their offerings by incorporating software such as global distribution system (GDS), which enables transactions between travel industry service providers such as airlines, hotels, car rental companies, and travel agencies.

The report focuses on the growth prospects, restraints, and trends of the Europe travel insurance market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the Europe travel insurance market.

Europe Travel Insurance Market
By Insurance Cover
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Single Trip Travel Insurance segment is projected to be the most lucrative segment

Segment Review

The Europe travel insurance market is segmented on the basis of insurance cover, distribution channel, end user, and region. In terms of insurance cover, it is segmented into single-trip travel insurance, annual multi-trip travel insurance, and long-stay travel insurance. 

Europe Travel Insurance Market
By Distribution Channel
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Insurance Intermediaries segment will dominate the market throughout the forecast period

Based on distribution channel, the market is segmented into insurance intermediaries, insurance companies, banks, insurance brokers, and insurance aggregators. On the basis of end user, it is segmented into senior citizens, education travelers, business travelers, family travelers, and others. Country wise, it is analyzed across UK, Germany, France, Italy, Spain, Netherlands, Switzerland, Austria, and Rest of Europe. 

Europe Travel Insurance Market
By End User
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Business Travelers segment would exhibit the highest CAGR of 16.7% during 2020 - 2027

The report analyses the profiles of key players operating in the market are Allianz, American International Group Inc., Assicurazioni Generali S.P.A., Aviva, AXA, EUROPEAN Travel Insurance Group, Insure & Go Insurance Services Limited, Mutuaide, The April Group, and Zurich. These key players have adopted various strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations, to increase their market penetration and strengthen their position in the industry.

Europe Travel Insurance Market
By Country
2027
Uk 
Germany
France
Italy
Spain
Netherlands
Switzerland
Austria
Rest of Europe

UK holds a dominant position in 2019 and would maintain the lead during the forecast period

COVID-19 Impact Analysis

Key players operating in the market are facing the negative impact of the COVID-19 outbreak, which are witnessing reduction in their revenue. Although the COVID-19 outbreak negatively impacts the Europe travel insurance market growth, the industry is expected to recover by the third quarter of 2020. This is attributed to an increased awareness of travel insurance among individuals, essentials of insurance coverage, restarting of tourism places, and other such factors are expected to provide numerous opportunities for the market in the upcoming years. In addition, insurers could test, enhance better connectivity to support more staff working off-site, and in flexible ways during the pandemic situation.

Top Impacting Factors

Rise in Baby Boomer Travel 

The European tourism industry has witnessed steep growth in the baby boomer travel in the recent years. Moreover, they are more inclined toward availing insurance policies, owing to their past experiences and growing age. In addition, they travel along with their family or relatives, which creates the need for secure travel. 

It has been observed that most of the baby boomers spend an average of 27 days in a year traveling, wherein nearly 41% of them considered Europe for international travel. In addition, the three most popular European countries visited by baby boomers are England, France, and Italy. Thus, rise in baby boomers travel is a significant factor toward the growth of the Europe travel insurance market. 

New Technological Developments in the Europe Travel Insurance Industry

The insurance industry has witnessed a paradigm shift in the recent years. For instance, according to Internet world stat, nearly 89.4% of the European population are accessing the internet via their mobile phones, desktop computers, and laptops. Therefore, with observing this trend, insurance companies have focused on formulating various strategies to provide mobile-friendly services. 

Furthermore, increased technologies such as geo-location, application program interface (API), artificial intelligence (AI), data analytics, blockchain, and big data are providing innovative opportunities for insurers in the market. With these technological developments, travel insurance distribution platforms are expected to enhance productivity for providing coverages seamlessly at the point-of-purchase in the region.  

Key Benefits For Stakeholders 

  • The study provides an in-depth analysis of the Europe travel insurance market share along with the current & future trends to elucidate the imminent investment pockets.
  • Information about key drivers, restrains, and opportunities and their impact analysis on the market size is provided in the report.
  • Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
  • An extensive analysis of the key segments of the industry helps to understand the Europe travel insurance market trends.
  • The quantitative analysis of the Europe travel insurance market from 2020 to 2027 is provided to determine the market potential.

Europe Travel Insurance Market Key Segments 

By Insurance Cover

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

By Distribution Channel 

  • Insurance Intermediaries
  • Insurance Companies
  • Banks
  • Insurance Brokers
  • Insurance Aggregators 

By End User 

  • Senior Citizens
  • Education Travelers
  • Business Travelers
  • Family Travelers
  • Others 

By Country

  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Netherlands
  • Switzerland
  • Austria
  • Rest of Europe

Key Market Players

  • Allianz 
  • American International Group Inc.
  • Assicurazioni Generali S.P.A.
  • Aviva
  • AXA
  • EUROPEAN Travel Insurance Group 
  • Insure & Go Insurance Services Limited
  • Mutuaide 
  • The April Group
  • Zurich 

Europe Travel Insurance Market Report Highlights

Aspects Details
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By INSURANCE COVER
  • Single-trip travel insurance
  • Annual multi-trip travel insurance
  • Long-stay travel insurance
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By DISTRIBUTION CHANNEL
  • Insurance intermediaries
  • Insurance companies
  • Banks
  • Insurance brokers
  • Insurance aggregators
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By END USER
  • Senior citizens
  • Education travelers
  • Business travelers
  • Family travelers
  • Others
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By COUNTRY
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Netherlands
  • Switzerland
  • Austria
  • Rest of Europe
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Key Market Players

American International Group, Inc., .INSURE & GO INSURANCE SERVICES LIMITED, Zurich, AXA, EUROPEAN Travel Insurance Group, Mutuaide, Aviva, APRIL Group, Allianz, ASSICURAZIONI GENERALI S.P.A.

Analyst Review

Travel insurance providers in the region are looking forward to expanding their offerings to provide customized coverages for their customers. In addition, millennials, Gen Y, and Gen Z are the major users of travel insurance and are more inclined toward availing travel insurance policies. Therefore, insurers have lucrative opportunities to innovate their offerings via several online sources. Nevertheless, a considerable number of companies remain under the perception that they have minimum travel insurance exposure.

However, the Europe travel insurance market is anticipated to recover the incurred losses and gain profit by the third quarter of 2022. This is attributed to an increase in sale of travel insurance policies due to rise in tourism as well as higher awareness about travel risk among different types of travelers. Consequently, there is an increase in customers buying travel insurance policy in the region, especially due to online comparison-shopping sites such as direct airlines portals, online travel agency (OTA) among others, which are more convenient and easier to compare premium & coverages of a policy.

The Europe travel insurance market is consolidated with the presence of key vendors such as Zurich, Allianz, and AXA. Some of the key players profiled in the report include American International Group, Inc., Assicurazioni Generali S.P.A., Aviva, EUROPEAN Travel Insurance Group, Insure & Go Insurance Services Limited, Mutuaide, and The April Group. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.

Author Name(s) : Aarti Goswami| Pramod Borasi | Onkar Sumant
Frequently Asked Questions?

The Europe Travel Insurance Market is expected to grow at a CAGR of 14.4% from 2020 to 2027.

The Europe Travel Insurance Market is estimated to reach $10.39 billion by 2027.

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Mandatory rules & regulations imposed by the government and increase in tourism boosts the Europe Travel Insurance market growth.

The key players profiled in the report include Allianz, American International Group Inc., Assicurazioni Generali S.P.A., Aviva, AXA, EUROPEAN Travel Insurance Group, The April Group, Zurich and many more.

On the basis of top growing big corporations, we select top 10 players.

The Europe Travel Insurance Market is segmented on the basis of insurance cover, distribution channel, end user, and region.

The key growth strategies of Europe Travel Insurance market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.

Annual Multi-Trip Travel Insurance segment would exhibit the highest CAGR of 17.8% during 2020 - 2027.

Family Travelers segment is expected to secure the leading position throughout the forecast period.

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Europe Travel Insurance Market

Regional Opportunity Analysis and Industry Forecast, 2020-2027