According to a new report published by Allied Market Research, titled, “Travel Insurance Market," The travel insurance market was valued at $14.2 billion in 2021, and is estimated to reach $124.8 billion by 2031, growing at a CAGR of 24.7% from 2022 to 2031.
The travel insurance market is expected to rise, owing to an increase in demand for safer travel and tourism as the fear of COVID-19 subsides. The travel insurance market growth is being aided by local government policies that are favoring its growth. For instance, Turkey Tourism Promotion and Development Agency (TGA) in June 2021, mandated the tourist destinations in the country to provide their customers (tourists) with proper health safety measures and sanitary environments. This influenced the tourist destinations to include travel insurance plans with their regular charges to better prepare them for the COVID-19 outbreak. Such trends are expected to provide lucrative opportunities for market expansion during the forecast period.
Since, Bimaplan, an InsurTech startup, collaborated with zingbus, an intercity travel startup, to provide real-time trip insurance as an add-on benefit to its users. By integrating insurance into their existing product, zingbus aims to provide a safe ride and a better customer experience, boosting customer acquisition and retention. Through its embedded insurance platform UNO, the insurtech company provide an array of coverage including travel accidental death, permanent total disablement, emergency medical cover, emergency medical evacuation cover, repatriation of mortal remains cover, travel accidental hospitalization cash (up to 7 days) and loss of baggage cover to ensure a safe, convenient, and reliable travel experience.
On the basis of end user, the family travelers segment attained the highest travel insurance market share in 2021. With the rise of adventure travel packages, the younger generation of travel influencers is growing rapidly, allowing families to travel with children over the age of 18.
By region, Asia-Pacific attained the highest travel insurance market size in 2021 and is expected to retain its position during the forecast period. This is attributed to increase in awareness related to significant advantages of travel insurance among developing nations which presents a major opportunity for Asia-Pacific region to become one of the major travel insurance markets worldwide. In addition, apart from international travelers, the number of domestic travelers across Asia-Pacific has also increased due to cheaper rates of transport, which drives growth of the market.
The COVID-19 pandemic brought the world to a halt, with unforeseeable and unexpected implications affecting global economies, people’s lives, communities, and livelihoods too, and the risk of layoffs and global recession was at an all-time high. Additionally, the travel and tourist industry has endured severe economic slowdowns as a result of harsh travel restrictions and quarantine regulations around the world. As per a report published by the World Tourism Organization (UNWTO) in January 2021, international visitors in 2020 fell dramatically in the year 2019. The worldwide travel insurance market was affected by such causes. The market gained traction in 2021 after the gradual relaxation of the lockdowns imposed. Hence, the COVID-19 pandemic had a moderate impact on the travel insurance market.
Key findings of the study
- By age group, the 31-49 years old segment led the travel insurance market in terms of revenue in 2021.
- By distribution channel, the insurance intermediaries segment accounted for the highest travel insurance market share in 2021.
- By region, Asia-Pacific generated the highest revenue in 2021.
The report analyzes the profiles of key players operating in the travel Insurance market analysis such as American International Group, Inc., Assicurazioni Generali S.P.A., Aviva, AXA, Zurich, Just Travel Cover, PassportCard, Trailfinders Ltd., Staysure, and Insurefor.com. These players have adopted various strategies to increase their market penetration and strengthen their position in the travel insurance industry.