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| ✷ Report Code: A01285 | Nov 2022 | Pages: 289 | ||
| Tables: 177 | Charts: 66 |
| |
The global travel insurance market was valued at $14.2 billion in 2021, and is projected to reach $124.8 billion by 2031, growing at a CAGR of 24.7% from 2022 to 2031.
The COVID-19 pandemic impeded growth of the travel insurance market in the first half of 2020 owing to strict lockdown measures enforced by the government. Travel and tourism are among the most affected industries due to the unprecedented global health, social, and economic emergency caused by the COVID-19 pandemic.
Travel Insurance is a type of trip insurance that covers the costs and losses associated with travel. It acts as useful protection for those who travel domestically and abroad. Some of these trip insurance cover damage to personal property and rented equipment such as rental cars. The market is primarily driven by increased tourism nationally and internationally over recent years. Furthermore, most travel companies have been providing travel insurance with 24/7 emergency services such as cash wire assistance, replacing lost passports, and re-booking canceled flights. These companies have also been offering customization options depending on the geographical location and as per the requirements of the individuals.
Increased tourism due to factors such as rise in disposable income, easy online travel bookings, package vacations, robust holiday coverage is driving the growth of the travel insurance market size. Consumers are opting for travel insurance to offset risks that include flight cancellations, luggage and critical document disappearance, and medical emergencies which is boosting the travel insurance market share. In addition, convenient opportunities for customers to buy travel insurance via online comparison-shopping sites such as direct airline sites and online travel agents (OTAs), business websites & apps, and others fuel the travel insurance market growth. However, lack of awareness regarding travel insurance among people is limiting the growth of the market. On the contrary, technological advancements such as geo-location, application program interface (API), artificial intelligence (AI), data mining, and global positioning system (GPS), among others, are creating lucrative business prospects for insurers. With the aid of emerging technologies, insurers are expected to improve traditional travel insurance delivery platforms in order to increase productivity and provide smooth user experiences. As a result, these conditions are expected to offer lucrative growth opportunities for the travel insurance market in the upcoming years.
The report focuses on growth prospects, restraints, and trends of the 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 the travel insurance market.
The travel insurance market is segmented into Insurance Cover, Distribution Channel, End User and Age Group.
Segment review
The travel insurance market is segmented on the basis of insurance cover, distribution channel, end user, age group, and region. By insurance cover, it is segmented into single-trip travel insurance, annual multi-trip travel insurance, and long-stay travel insurance. By distribution channel, the market is divided into insurance intermediaries, insurance companies, banks, insurance brokers, and insurance aggregators. By end user, it is bifurcated into senior citizens, education travelers, business travelers, family travelers, and others. By age group, it is segregated into 1-17 years old, 18-30 years old, 31-49 years old, and above 50. By region, it is analyzed across North America, Europe, Asia Pacific, and LAMEA.
By insurance cover, the single-trip insurance segment attained the highest travel insurance market share in 2021. This is attributed to the fact that customized coverage is covered under this policy, and is available at an extra premium cost, depending on customer demands.
By region, Asia-Pacific attained the highest travel insurance market size 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 presents a major opportunity for this 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 report analyzes the profiles of key players operating in the travel insurance market 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. Â
COVID-19 impact analysis
The COVID-19 pandemic impeded growth of the travel insurance market in the first half of 2020 owing to strict lockdown measures enforced by the government. Travel and tourism are among the most affected industries due to the unprecedented global health, social, and economic emergency caused by the COVID-19 pandemic. The number of domestic and international tourists significantly decreased in 2020. The market gained traction in the second half of 2020 after the gradual relaxation of the lockdowns imposed. In the coming years, there will be a rise in the number of travelers because various industry participants offer coverage for medical expenses related to COVID–19. Therefore, the COVID-19 had a negative impact on the travel insurance market forecast.
Top impacting factors
Rapid growth in tourism
The travel and tourism sector has consistently grown during the past ten years. There are numerous nations in the world that are growing in popularity among millennials and becoming major tourist destinations. The growth of the tourism sector has been aided by an increase in package holidays, disposable income, extensive media coverage of various holiday types, and simple online travel reservations. In addition, a lot of students relocate to other nations for higher education, and a number of universities and colleges offer scholarship opportunities that draw students from all over the world. More incidences of important documents going missing, bags going missing, natural calamities happening, and health problems are documented as the tourism business grows. Therefore, these factors of travel insurance are considered as the major driving factors for the growth of travel insurance market. Â
Expansion of products and services in travel insurance policy
The travel insurance industry is poised to observe considerable development, with an increase in the number of insurance companies offering inexpensive and attractive plans. These companies provide appealing packages that are tailored to a range of travel categories. For instance, Chubb Limited offers Passport 360 travel insurance that offers optional upgrades including Golf package. This package covers recreational equipment delay and recreational vehicle damage. Companies are also focusing on plans introduced to offer various additional benefits including online healthcare consultation service and Wi-Fi rental services. Therefore, the expansion of products and services in travel insurance policies provides a lucrative growth for the growth of the travel insurance market.Â
Key benefits for stakeholders
Travel Insurance Market Report Highlights
| Aspects | Details |
|---|---|
| Market Size By 2031 | USD 124.8 billion |
| Growth Rate | CAGR of 24.7% |
| Forecast period | 2021 - 2031 |
| Report Pages | 289 |
| By Insurance Cover |
|
| By Distribution Channel |
|
| By End User |
|
| By Age Group |
|
| By Region |
|
| Key Market Players | Aviva, AXA, Assicurazioni Generali S.P.A., American International Group, Inc., Trailfinders Ltd., Zurich, Just Travel Cover, Staysure, Insurefor.com, PassportCard |
The adoption of travel insurance has increased substantially over time as a result of surge in the number of travelers and the widespread availability of travel insurance through online vendors & insurance intermediaries. Furthermore, added health risks while traveling amidst the outbreak of the COVID-19 pandemic are aiding in the growth of the travel insurance market during the period. In addition, several local governments and authorities are mandating travel insurance for foreign visitors amidst the outbreak of COVID-19, which is expected to further boost the growth of the global travel insurance market. With larger requirements from travel insurance, various companies have established partnerships to increase their travel insurance offering portfolio. For instance, in November 2021, American International Group, Inc. partnered with Goose Insurance Services, an innovative insurance technology company making it easier and faster for consumers to get the coverage they need through a self-serve mobile app. This partnership includes the digital launch of income protection and hospital cash plans that targets Canada’s growth in gig economy. In addition, with the rise in demand for travel insurance covers, various companies have expanded their current services to continue with the rising demand.
For instance, in June 2019, AXA launched WeChat Mini Program to offer travel insurance policies to users of the dominant Chinese messaging app. WeChat allows AXA customers 24/7 global emergency access to AXA assistance and access to its customer service for security and safety information regarding any natural disasters. Such services provide a greater level of customer satisfaction and feasibility to travel insurance customers, widening the scope of the travel insurance market.
Moreover, market players have expanded their business operations and customers by increasing their acquisitions. For instance, in February 2019, Assicurazioni Generali S.P.A announced the acquisition of a 100% stake in Trip Mate from Arthur J. Gallagher. Trip Mate is a managing general agent leader in the tour operator travel insurance market in the U.S. This acquisition helps in the expansion of Assicurazioni Generali’s travel insurance market across the U.S. and North America. Some of the key players profiled in the report include 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 industry.
A. The travel insurance market is estimated to grow at a CAGR of 24.7% from 2022 to 2031.
A. The travel insurance market is projected to reach $124.84 billion by 2031.
A. Rapid growth in tourism, convenient shopping due to online comparison sites and travel rules and regulations majorly contribute toward the growth of the market.
A. The key players profiled in the report include American International Group, Inc., Assicurazioni Generali S.P.A., Aviva, AXA, Zurich, Just Travel Cover, PassportCard, Trailfinders Ltd., Staysure, and Insurefor.com
A. The key growth strategies of travel insurance market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.
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