Australia and Canada Travel Insurance Market Expected to Reach $12,341.78 Million by 2032

According to a recent report published by Allied Market Research, titled, “Australia and Canada Travel Insurance Market by Insurance Cover, Distribution Channel, End User, and Age Group: Country Opportunity Analysis and Industry Forecast, 2023–2032,” The Australia and Canada travel insurance market was valued at $1,444.91 million in 2022, and is projected to reach $12,341.78 million by 2032, registering a CAGR of 24.0% from 2023 to 2032.

Travel insurance provides coverage for associated risks, such as injury or death, loss of luggage, delays, and others, while traveling. The premiums vary according to plans and coverages, such as trip cancellation, loss of luggage & travel documents, medical expenses and emergency medical evacuations, and others. Further, significant increase in tourism, innovative technologies, development in travel rules & regulations, and others are some of the lucrative factors that boost the Australia and Canada travel insurance market growth.

Furthermore, Rise in baby boomer travelers along with their family or relatives creates a need for secure travel, thus driving the growth of the Australia and Canada travel insurance market. In addition, increase in emergency and medical expenses, is propelling the Australia and Canada travel insurance market growth. Several incidences such as trip cancellations, loss of luggage & important documents, medical emergencies, and others take place with increase in tourism. To mitigate these risks, consumers opt for travel insurance, which is a significant driving factor for the travel insurance market. However, low penetration level, fewer written policies of travel insurance, and less awareness about the benefit related to travel insurance are some of the factors that limit the growth of the Australia and Canada travel insurance market.

On the basis of insurance cover, the single trip travel insurance segment dominated the Australia and Canada travel insurance industry in 2022 and is projected to maintain its dominance during the forecast period. Single trip travel insurance provides customized offerings and covers a combination of eventualities, including trip cancellation, injury & illness, public liability, emergency repatriation, loss of baggage, and others. In addition, the growth of the single trip travel insurance cover segment is expected to gain momentum due to its best suited policies for family travelers preferring vacation once or twice a year, and thus is expected to grow at a significant CAGR during the forecast period. 

By distribution channel, the insurance intermediaries sector dominated the Australia and Canada travel insurance industry in 2022 and is projected to maintain its dominance during the forecast period, as intermediaries directly deal with a range of hotel chains and flight operators to provide better customer services in the market.

Moreover, majority of travel bookings are made via core travel agents and tour operators involved in this intermediary. As a result, travel intermediaries providing travel insurance & assistance services; thereby, driving the growth of the travel insurance market during the forecast period. However, the insurance aggregators segment is expected to grow at a significant CAGR during the forecast period, owing to aggregators offering an online comparison-shopping site, allowing consumers to easily compare product in terms of coverages, carriers, features, amount of premiums, and others. In addition, it provides sufficient information about the products by bringing together plans from several travel insurance companies.

The Australia and Canada travel insurance market has witnessed significant growth in the past few years; however, due to the outbreak of the COVID-19 pandemic, the market witnessed a sudden downfall in 2020. This is attributed to global fear of the virus and unprecedented travel restrictions, which tremendously reduced the demand for travel services. The Australia and Canada travel insurance market is projected to prosper in the upcoming years, post COVID-19 pandemic.

In the wake of the COVID-19 virus outbreak in December 2019, the disease spread to almost 180+ countries around the globe with the World Health Organization declaring it a public health emergency. The global pandemic adversely affected the travel insurance market. Due to lockdown, countries globally imposed travel ban on the travelers, which resulted in a greater number of people claiming for cancelled holidays and business trips. This resulted in freezing the coverages of travelers and many companies changing their policies. However, with rise in the number of COVID-19 patients, private insurers cancelled their policies and stopped issuing new policies to the travelers, which hampered the growth of the market. For instance, Immigration, Refugees and Citizenship Canada (IRCC) stopped accepting Visitors to Canada Emergency Medical Insurance Plans, purchased on monthly instalments for super visa applicants.

Key Findings of The Study

• By insurance cover, the single trip travel insurance segment accounted for the largest Australia and Canada travel insurance market share in 2022.
• Country-wise, Australia generated the highest revenue in 2022.
• On the basis of age group, the 31-49 years old segment generated the highest revenue in 2022.

The Australia and Canada travel insurance Market is dominated by key players such as Cover-More, Allianz Australia Limited, Suncorp Group, AIG Australia Ltd, Nib Travel Insurance Distribution Pty Limited, The Manufacturers Life Insurance Company, TD Insurance, RSA Travel Insurance Inc., Travel Guard and Blue Cross Canada. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.