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Southeast Asia Travel Insurance Market

Southeast Asia Travel Insurance Market Size, Share, Competitive Landscape and Trend Analysis Report by Insurance Cover, Distribution Channel, End User, Mode : Opportunity Analysis and Industry Forecast, 2024-2032

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Author's: Shrawanty Yadav| Tanmay Sharma | Onkar Sumant
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Southeast Asia Travel Insurance Market Research, 2032

The Southeast Asia travel Insurance market size was valued at $356.22 million in 2019, and is projected to reach $1,390.32 million by 2032, growing at a CAGR of 13.9% from 2024-2032.

Travel insurance is a type of insurance coverage that covers unexpected occurrences that may occur before or during a trip. It typically provides coverage for travel cancellations, interruptions, and delays, as well as medical expenses, emergency evacuation, and lost or stolen items. In addition, travel insurance can provide financial security against unanticipated incidents such as illness, natural disasters, or travel advisories. It is often recommended for international travel, where healthcare costs and other expenses can be significantly higher than usual. Furthermore, the travel insurance industry in Southeast Asia, the region as a booming tourism sector presents significant opportunities. As more travelers recognize the importance of insurance, demand for comprehensive coverage increases. This trend encourages insurance providers to innovate and tailor their products to meet diverse traveler needs, fostering healthy competition and driving industry growth.

Southeast Asia Travel Insurance Market

Factors such as increasing adoption of digital platforms for purchasing travel insurance and growing demand for customizable insurance plans tailored to specific travel needs drive the growth of the market across Southeast Asia. In addition, integration of travel insurance with other services like booking platforms and airline tickets and growth in adventure tourism leading to specialized insurance offerings are expected to propel the growth of the Southeast Asia travel insurance market during the forecast period.

Furthermore, awareness about the importance of travel insurance due to natural disasters and health emergencies, increasing travel frequency and duration among Southeast Asia tourists, and strategic partnerships with healthcare providers for seamless medical assistance services are expected to provide lucrative opportunities for the market growth in the coming years. However, price sensitivity among budget travelers, regulatory complexities and limited awareness about the benefits of travel insurance are restraining the market growth.

By mode, the online segment acquired a major Southeast Asia travel insurance market share in 2019 and is expected to witness the highest growth during the forecast period. This mode leverages digital platforms, enabling quick comparison of policies, customization options, and instant issuance of coverage. In addition, offers personalized assistance, facilitating a better understanding of policy terms and ensuring tailored coverage according to individual needs.

Country-wise, Singapore dominated the Southeast Asia travel insurance market share in 2019. Advancements in technology in the country have enabled insurers to offer innovative solutions such as digital claims processing and real-time assistance services, enhancing customer experience and convenience. However, Thailand is expected to witness the highest growth during the forecast period. Insurance providers in Thailand tailor their products to meet the specific needs of travelers, offering various levels of coverage and optional add-ons to suit individual preferences. Key players in the market employ competitive pricing strategies and leverage digital platforms to enhance accessibility and convenience for customers.

Segment Review

The Southeast Asia travel insurance market is segmented into insurance cover, distribution channel, end user, mode, and country. By insurance cover, the market is differentiated into single-trip travel insurance, annual multi-trip travel insurance, and long-stay travel insurance. Based on distribution channel, the market is segmented into insurance intermediaries, insurance companies, banks, insurance brokers, and insurance aggregators. Depending on the end user, it is fragmented into education travelers, business travelers, family travelers, and others. By mode, the market is classified into online and offline. Country wise, the Southeast Asia travel insurance market is analyzed across Singapore, Malaysia, Thailand, Indonesia, and Rest of Southeast Asia.

Southeast Asia Travel Insurance Market
By Insurance Cover
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Long-stay travel insurance segment is projected as one of the most lucrative segments.

Top Impacting Factors   

Increasing demand for comprehensive coverage due to evolving travel patterns

With globalization and technological advancements, travel has become more accessible and diverse than ever before. Southeast Asia countries travelers are increasingly exploring a wide range of destinations, from remote villages to bustling metropolises, and engaging in various activities such as adventure sports, eco-tourism, and cultural exchanges. In this dynamic landscape, the traditional one-size-fits-all insurance policies no longer suffice. Instead, travelers seek comprehensive coverage that aligns with their specific needs and preferences, offering protection for a wide array of eventualities, including medical emergencies, trip cancellations, baggage loss, and even unforeseen events such as natural disasters and others. For instance, Open, a global embedded insurance partner, has unveiled a new travel insurance offering designed to cater to the diverse needs of individual travelers and travel providers. The new product integrates Open’s Instant Claims technology and introduces Smart Flight Delay, a feature that automatically provides lounge passes to customers and up to four companions for flight disruptions of 60 minutes or more. The innovation aims to provide customers with timely assistance without requiring them to file a claim.

Southeast Asia Travel Insurance Market
By Distribution Channel
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Insurance Aggregators segment is projected as one of the most lucrative segments.

Moreover, as travelers become more aware of the potential risks involved in international travel, especially in recent global events such as Covid-19 pandemic, they prioritize insurance plans that provide extensive coverage and flexibility. As a result, insurers in Southeast Asia are responding by enhancing their product offerings to cater to these evolving needs, thereby driving the demand for comprehensive travel insurance across the region.

Growing awareness regarding travel insurance policies

The growing awareness of travel insurance policies presents significant opportunities for the Southeast Asia travel insurance industry. As more individuals recognize the importance of protecting their travel investments and health during trips, there's a surge in demand for comprehensive insurance coverage. This trend not only opens up avenues for insurance providers to offer tailored packages catering to diverse travel needs but also encourages innovation in policy offerings, such as flexible cancellation policies and coverage for unforeseen events like natural disasters or pandemics. In addition, the rise of digital platforms and online purchasing channels facilitates easier access to travel insurance products, expanding the market reach and enabling insurers to better cater to the region's burgeoning travel industry. Hence, the increased awareness of travel insurance presents a promising landscape for growth and development within the Southeast Asia travel insurance industry.

Competition Analysis

The report analyzes the profiles of key players operating in the Southeast Asia travel insurance market such as American International Group, Inc., Zurich Insurance Group, AXA, Allianz Group, Muang Thai Insurance Public Company Limited, MSIG Insurance (Singapore) Pte. Ltd, Income Insurance Limited, Great Eastern Holdings Ltd, Berjaya Sompo Insurance Berhad, and Chubb Limited.  These players have adopted various strategies to increase their market penetration and strengthen their position in the Southeast Asia travel insurance market.

Key Developments in the Southeast Asia Travel Insurance Industry

  • In April 2024: Zurich Insurance collaborated with Klook, to introduce lounge access for delayed flights. Through FlyEasy, the service aims to enhance customer experience by providing immediate support during travel disruptions, departing from traditional insurance practices.
  • In April 2024: MSIG Insurance enhanced its Global Study Insurance to meet the needs of students going on overseas education. The upgraded policy features higher medical coverage for overseas hospitalization and COVID-19 treatment, trauma counseling, and leisure travel protection.
  • In March 2024: AIG General Insurance Company Limited launched “Travel Guard Plus,” a comprehensive travel insurance product that redefines complete coverage for travelers with an array of bundle plans. AIG’s Travel Guard Plus has been meticulously designed to meet people’s diverse travel needs with a wide range of plans where 41 different types of covers have been packaged to meet the need of customers.

Key Benefits for Stakeholders

  • The study provides an in-depth Southeast Asia travel insurance market analysis along with the current trends and future estimations to elucidate the imminent investment pockets.
  • Information about key drivers, restrains, and opportunities and their impact analysis on the Southeast Asia travel insurance market size is provided in the report.
  • The Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the Southeast Asia travel insurance industry.
  • The quantitative analysis of the global Southeast Asia travel insurance market for the period 2019–2032 is provided to determine the Southeast Asia travel insurance market potential.

Southeast Asia Travel Insurance Market Report Highlights

Aspects Details
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
  • Education Travelers
  • Business Travelers
  • Family Travelers
  • Others
By Mode
  • Online
  • Offline
By Country
  • Singapore
  • Malaysia
  • Thailand
  • Indonesia
  • Rest of Southeast Asia
Key Market Players

Chubb Limited, Muang Thai Insurance Public Company Limited, American International Group, Inc., Berjaya Sompo Insurance Berhad, Zurich Insurance Group, Income Insurance Limited, MSIG Insurance (Singapore) Pte. Ltd, Allianz Group, AXA, Great Eastern Holdings Ltd.

Analyst Review

Top business leaders navigated the Southeast Asia travel insurance industry with a nuanced understanding of the diverse dynamics at play. In Singapore, a hub for international travel, business leaders emphasize the importance of offering comprehensive coverage tailored to the specific needs and preferences of travelers. They recognize the evolving nature of travel patterns, with more individuals seeking specialized policies that provide extensive protection against a wide range of risks, including medical emergencies, trip cancellations, and unforeseen events. This necessitates a proactive approach to product development, focusing on flexibility, transparency, and ease of access to ensure that travelers feel adequately protected throughout their journeys. For instance, in November 2023, the southeast Asian firm, Seedly (a MoneyHero Group firm), has unveiled an innovative travel insurance product, Seedly Travel Insurance, which is designed to the growing need for comprehensive affordable travel coverage among Singapore consumers, catering especially to families and adventure enthusiasts. In addition, it extends coverage to adventurous activities abroad, enabling policyholders to engage in pursuits like mountaineering and scuba diving without additional fees.

Furthermore, in Thailand and Malaysia, where tourism is a cornerstone of the economy, business leaders are attuned to the unique challenges and opportunities within the travel insurance landscape. They recognize the need to forge strategic partnerships with key stakeholders such as airlines, travel agencies, and healthcare providers to enhance the value proposition of their insurance offerings. By collaborating closely with industry partners, they can develop innovative products and services that not only provide financial protection but also deliver added convenience and peace of mind to travelers. For instance, May 2023, AXA Insurance PCL, a renowned insurance and asset management leader, partnered with the CoverGo, the leading global no-code insurance SaaS core platform for health, for revolutionizing AXA’s health insurance ecosystem in Thailand.

By leveraging advanced technology, the collaboration seeks to enhance and expand the utilization of technology within the health insurance system and related products, resulting in optimal efficiency. On the other hand, in April 2024, SeaMoney, the financial services arm of Sea Limited, has partnered with Allianz General Insurance Malaysia to launch a new Travel Insurance, offering comprehensive protection for domestic and international travelers from an affordable price. Such initiatives are expected to provide lucrative opportunities for market growth during the forecast period. Across the rest of Southeast Asia, business leaders are navigating a diverse and rapidly evolving regulatory environment while seeking to capitalize on emerging trends and market opportunities. They understand the importance of staying agile and responsive to shifting consumer preferences, regulatory requirements, and competitive dynamics. By fostering a culture of innovation and customer-centricity, they aim to position their companies for long-term success in the dynamic and rapidly evolving Southeast Asia travel insurance industry.

For instance, in September 2023, Oona, a leading digital general insurance platform in Southeast Asia funded by Warburg Pincus, launched the innovative travel insurance product, Oona Flight Delay Insurance1, targeted at Indonesian travelers. This product launch marks Oona’s entry into the direct-to-customer segment in the Indonesian market. Furthermore, Oona alleviated the flight delay experience with its paperless, affordable and easy flight delay insurance which is available via WhatsApp, Website Chatbot and Facebook Messenger, a first of its kind in Indonesia. The product is available for only Rp35,000 for up to four total flights.

Author Name(s) : Shrawanty Yadav| Tanmay Sharma | Onkar Sumant

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Southeast Asia Travel Insurance Market

Opportunity Analysis and Industry Forecast, 2024-2032