According to a recent report published by Allied Market Research, titled, “Business Travel Insurance Market By Coverage Type, Distribution Channels, and Application: Global Opportunity Analysis and Industry Forecast, 2021–2030”, the global business travel insurance market size was valued at $3.61 billion in 2020, and is projected to reach $20.19 billion by 2030, growing at a CAGR of 19.2% from 2021 to 2030.
Business travel insurance help companies against various types of financial uncertainties that arises from unfortunate instances such as injuries, accidents, loss of baggage, terrorist attacks, and flight cancellation. Increase in national and international travel of employees for business is driving the growth of the market. The key factors driving the business travel insurance market growth include increase in use of digital distribution channel among insurance providers to boost the business sales and strengthened government regulations toward cross-border travelling.
However, lack of awareness among business owners toward travel insurance policy hampers the growth of business travel insurance market. On the contrary, increase in spending of business on high cost products & services and adoption of digital tools, such as artificial intelligence (AI), application program interface (API), global positioning system (GPS), and data analytics for delivering affordable insurance policy are expected to provide lucrative opportunity for the business travel insurance market.
Region wise, Europe contributed the largest market share in 2020, owing to increase in key vendors of business travel insurance and surge in adoption of advanced technologies among key vendors. However, Asia-Pacific is expected to witness the highest growth rate during the forecast period, owing to the fact that governments of various countries such as Japan, Malaysia, Australia, and Thailand are focusing on formulating regulations that mandate the travel insurance for all international travelers.
Depending on the distribution channels, the global business travel insurance market is classified into insurance intermediaries, insurance companies, banks, insurance brokers and insurance aggregators. The insurance intermediaries segment dominated the market, in terms of share, in 2020, due to increase in use of digital platform to sell the insurance products among the insurance intermediaries. However, the insurance aggregators segment is expected to witness the highest growth rate during the forecast period, owing to increase in partnership between insurance providers to deliver affordable business travel insurance policy.
The outbreak of COVID-19 is anticipated to have a significant impact on the growth of the business travel insurance market trends. Although the COVID-19 outbreak negatively impacts the growth of the market, the industry is expected to recover by the third quarter of 2020. This is attributed to an increased awareness of business travel insurance among the organizations, 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 order to sustain in the health crisis, business travel insurers in the region are tackling this pandemic situation by implementing several strategies depending on country guidelines. Changing & developing their existing policies, avoiding sale of new policy, customizing coverages, and other such factors are managed by the travel insurance providers in Europe. These business travel insurers are enhancing their product offerings and implementing technologies to provide business travel insurance coverage to the policyholders during the pandemic situation.
The report focuses on the growth prospects, restraints, and trends of global business 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 global business travel insurance market.
Key Findings of the Study
- By coverage type, the multi-trip travel insurance coverage is expected to attain significant growth during the forecasted period.
- Region wise, Europe generated the highest revenue in 2020.
- On the basis of application, the domestic traveler segment dominated the business travel insurance market, in terms of revenue generation, in 2020.
The key players operating in the global business travel insurance market share include Allianz, American International Group Inc., Assicurazioni Generali S.P.A., AXA, Chubb, Nationwide, Seven Corners Inc., TravelSafe, USI Insurance Services LLC, and Zurich. These market players have adopted various strategies to increase their market penetration and strengthen their foothold in the business travel insurance industry.