Single Trip Travel Insurance Market Outlook – 2030
The global single trip travel insurance market size was valued at $8.85 billion in 2020, and is projected to reach $45.89 billion by 2030, growing at a CAGR of 19.1% from 2021 to 2030. A single trip insurance policy essentially covers a single overseas trip. An international single trip insurance policy will last until the insured returns home from the trip. All insurers have a limit on the number of days that count as a single trip. Single trip insurance policies are apt if the insured is making not more than one trip a year.
Rapid growth in tourism and increase in use of digital distribution channel among insurance providers boost the growth of the global single trip travel insurance market. In addition, favorable government regulations regarding travel insurance positively impacts the growth of the single trip travel insurance market size. However, lack of awareness regarding single trip travel insurance policy hampers the market growth. On the contrary, introduction of new products and services and new technological developments in the travel insurance industry are expected to offer remunerative opportunities for expansion of the single trip travel insurance market during the forecast period.
In terms of end user, the family travelers segment holds the largest share of the single trip travel insurance market owing to rise in multigenerational travel trend among the families. However, the business travelers’ segment is expected to grow at the highest rate during the forecast period, owing to rise in demand for corporate travel experience, including booking, expenses, customized travel insurance policies, trip management, and others.
Region wise, the single trip travel insurance market was dominated by Asia-Pacific in 2020 and is expected to witness significant growth during the forecast period, as many single trip travelers purchase the policy that is available while booking a ticket and is available while using online travel guide to download a plan for purchasing a policy.
The report focuses on growth prospects, restraints, and analysis of the global single trip travel insurance market trends. 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 global single trip travel insurance market share.
The single trip travel insurance market is segmented into distribution channel, end user, and region. Depending on distribution channel, the market is bifurcated into insurance intermediaries, insurance companies, banks, insurance brokers, and insurance aggregators. In terms of end user, it is differentiated into senior citizens, education travelers, business travelers, family travelers, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Distribution Channel
Insurance Intermediaries segment is projected as one of the most lucrative segments.
Competitive analysis and profiles of the major single trip travel insurance market players such as AGA Service Company, Bajaj Allianz General Insurance Company, Care Health Insurance, GeoBlue, HDFC ERGO General Insurance Company Limited, ICICI Lombard General Insurance Company Ltd., IFFCO-Tokio General Insurance Company Limited, Nationwide, Reliance General Insurance, and World Nomads Travel Insurance. These key players have adopted strategies, such as product portfolio expansion, mergers & acquisitions, agreements, regional expansion, and collaboration, to enhance their market penetration.
COVID-19 Impact Analysis
The travel & tourism industry has recorded continuous investments for its developments and has become a massive contributor to the economic growth. However, this industry has been largely affected due to the outbreak of the COVID-19 pandemic, leading to economic instability. Almost 90–92% of tourism destinations are following complete ban on international tourists. Furthermore, a study conducted by the World Travel and Tourism Council (WTTC) has warned that COVID-19 can lead to around 50 million job losses worldwide in the travel & tourism industry, and will take nearly 10 months or a year for the industry to start recovering. Thus, to overcome this, the government of each country is focusing on simplifying the visas and deduct the travel taxes to boost the tourism industry post the COVID-19 pandemic.
By End User
Family travelers segment is projected as one of the most lucrative segments.
Top Impacting Factors
Rapid Growth in Tourism
Rise in tourist population owing to increase in disposable income, extensive coverage for holidays, easy online travel booking options, and others attribute toward the growth of the tourism industry in the country. With an increase in tourism, several incidences such as cancelled flights, accidents, health issues, theft or loss of baggage, natural calamities, and other such occurrences of uncertainties during travel, drive the demand for single trip travel insurance. Consumers are opting for travel insurance to mitigate the risks associated with such incidences. Therefore, the growth of tourism industry acts as a prime driver for the single trip travel insurance market.
Increase in Use of Digital Distribution Channel Among Insurance Providers
With increase in penetration of internet, end users across the globe have shifted toward the use of digital channels for purchasing insurance policies such as travel insurance, single trip compensation insurance, and passenger health insurance, which promotes the growth of the market. Increase in use of several online portals such as direct airline sites and online travel agencies (OTAs) websites & applications further foster the growth of the online insurance market. In addition, digital insurance distribution channels have been providing several benefits to single trip travelers, such as passengers can immediate receive of health treatment and comparison of travel insurance coverage from top-rated providers. For instance, according to a survey conducted by the TravelInsurance.com in 2019, digital channel offers several ways to compare from multiple travel insurance companies to purchase affordable insurance policy, which fuels the growth of the single trip travel insurance industry.
Asia-Pacific would exhibit the highest CAGR of 22.2% during 2021-2030.
Key Benefits for Stakeholders
- The study provides an in-depth analysis of the global single trip travel insurance market forecast along with current & future trends to explain the imminent investment pockets.
- Information about key drivers, restraints, & opportunities and their impact analysis on global single trip travel insurance market growth is provided in the report.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
- The quantitative analysis of the single trip travel insurance market opportunities from 2021 to 2030 is provided to determine the market potential.
Single Trip Travel Insurance Market Report Highlights
By DISTRIBUTION CHANNEL
By END USER
Key Market Players
AGA Service Company, HDFC ERGO General Insurance Company Limited, Reliance General Insurance Company Limited, IFFCO-Tokio General Insurance Company Limited, World Nomads, Nationwide Mutual Insurance Company, Bajaj Allianz General Insurance Company, Care Health Insurance, GeoBlue, ICICI Lombard General Insurance Company Ltd
According to the insights of the CXOs of leading companies, the travel industry is the major consumer of single trip travel insurance solutions. Moreover, the key factors driving the growth of the global single trip travel insurance market trends include increase in use of digital distribution channel among insurance providers to boost the single trip sales and strengthened government regulations toward cross-border travelling. In addition, single trip travel insurance providers are looking forward to expand their insurance policies to provide modified coverages for their consumers, which accelerates the growth of the market during the upcoming years
Key providers of single trip travel insurance market such as AGA Service Company, Bajaj Allianz General Insurance Company, and HDFC ERGO General Insurance Company Limited account for a significant share in the market. With the larger requirement from the single trip travel insurance, various companies are partnering to increase the single trip travel insurance capabilities. For instance, January 2021, Allianz Partners has established a partnership with SmartNomad, a digital travel concierge that leverages artificial intelligence (AI) and human expertise to plan and book fantastic trips. Moreover, Allianz's 24/7 customer support and travel assistance for domestic and international flights, accommodation, and vehicle rentals will be available to SmartNomad clients.
In addition, with the increase in demand for single trip travel insurance services various companies are expanding their current services to continue with the rise in demand. For instance, in July 2021, Bajaj Allianz General Insurance Company and Bank of India, one of the country's largest public sector banks, signed a corporate agency agreement to distribute Bajaj Allianz General Insurance's products through the bank's extensive network of 5084 branches, 80 Retail Business Centers, and 60 SME City Centers.
Moreover, market players are expanding their single trip operations and customers by increasing their partnership. For instance, in June 2019, Bajaj Allianz General Insurance Company and Citibank have agreed to distribute Bajaj Allianz General Insurance's products through a corporate agency arrangement. In addition, Bajaj Allianz General Insurance will provide personal lines of insurance such as health, personal accident, vehicle, home, and travel to the bank's clients, as well as business lines of insurance such as property, marine, and engineering. Moreover, the goal of this collaboration between the two companies was to give world-class services to the bank's clients and improve their overall experience.