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2024

Travel Insurance Market

Travel Insurance Market Size, Share, Competitive Landscape and Trend Analysis Report by Insurance Cover, by Distribution Channel, by End User, by Age Group : Global Opportunity Analysis and Industry Forecast, 2023-2032

BI : Insurance

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Author's: Bias Dey | Onkar Sumant
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Travel Insurance Market Research, 2032

The global travel insurance market was valued at $16.8 billion in 2022, and is projected to reach $106.8 billion by 2032, growing at a CAGR of 20.1% from 2023 to 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.

Travel Insurance Market Insights

Key Takeaways

  • By insurance cover, the single-trip travel insurance segment held the largest travel insurance market size for 2022.

  • By distribution channel, the insurance intermediaries segment held the largest share in the travel insurance market for 2022.

  • By end users, the business travelers’ segment is expected to show the fastest market growth during the forecast period.

  • By age group, the 18-30 years old segment is expected to show the fastest market growth during the forecast period.

  • Region-wise, Europe held largest market share in 2022. However, Asia-Pacific is expected to witness the highest CAGR during the forecast period.

The travel insurance market trends include, rapid growth in tourism, convenient shopping due to online comparison sites and travel rules & regulations primarily drive the growth of the travel insurance market. However, lack of awareness regarding travel insurance policy hampers the market growth. On the contrary, expansion of products & services and new technological developments in the travel insurance industry is expected to provide lucrative opportunities for the market growth during the forecast period. 

Segment Overview

The travel insurance market outlook is segmented on the basis of insurance cover, distribution channel, end user, age group, and region. By insurance cover, it is fragmented 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 classified 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 years. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

By Insurance Cover

On the basis of insurance cover, single-trip travel insurance segment dominated the travel insurance market share in 2022 and is expected to maintain its dominance in the upcoming years owing to its affordability, flexibility, and suitability for the evolving needs of modern travelers, coupled with the increasing awareness of the importance of travel insurance in mitigating risks associated with international travel. However, the long-stay travel insurance segment is expected to witness the highest growth, owing to growing popularity of long-term travel among digital nomads, remote workers, students, and other travelers, coupled with the increasing recognition of the need for specialized insurance coverage tailored to extended journeys and immersive experiences.

Travel Insurance Market by Insurance Cover

By Distribution Channel

On the basis of distribution channel, insurance intermediaries segment dominated the travel insurance market in 2022 and is expected to maintain its dominance in the upcoming years owing to its widespread network, personalized customer service, and ability to offer a wide range of insurance products tailored to individual needs. However, the insurance aggregators segment is expected to register the highest CAGR during the travel insurance market forecast period, owing to the increasing popularity of long-term travel among retirees, digital nomads, and individuals seeking extended stays abroad for work or leisure.

Travel Insurance Market by Distribution Channel

By End User

On the basis of end user, family travelers segment dominated the travel insurance market in 2022 and is expected to maintain its dominance in the upcoming years owing to emphasis on safety and security, the financial investment involved in family vacations, the unique needs of families traveling with children, and the growing popularity of multigenerational travel experiences. However, the business travelers segment is expected to witness the highest growth, owing to resurgence of business travel, the specific needs and priorities of corporate travelers, the flexibility and convenience of multi-trip insurance plans driving demand for comprehensive travel insurance solutions.

Travel Insurance Market by End User

By Age Group

On the basis of age group, 31-49 years old segment dominated the travel insurance market in 2022 and is expected to maintain its dominance in the upcoming years owing to their financial stability, active travel behavior, increased awareness of the need for travel insurance, and the convenience of accessing and purchasing insurance products online. However, the 18-30 years old segment is expected to witness the highest growth, owing to their adventurous mindset, financial flexibility, and heightened awareness of the importance of travel insurance in safeguarding their travel experiences in an increasingly uncertain world.

Travel Insurance Market by Age Group

By Region

Region-wise, the travel insurance market was dominated by Europe in 2022 and is expected to retain its position during the forecast period, owing to the regions well-established travel infrastructure, high travel frequency among its population, and strong awareness about the importance of travel insurance, supported by robust regulatory frameworks. However, Asia Pacific is expected to witness significant growth during the forecast period, owing to the increasing disposable incomes, rising travel expenditures, and growing awareness about the benefits of travel insurance among the region's population, which is driving the market growth.

Travel Insurance Market by Region

Market Landscape and Trends

The technological trend for travel insurance market is focused on enhancing customer experience, improving operational efficiency, and mitigating risks which is driving the market growth. The integration of artificial intelligence (AI) and machine learning (ML) technologies is used to provide instant customer support through chatbots, personalize insurance offerings based on individual travel patterns, and analyse data to better understand and price risks. In addition, blockchain technology utilized to securely manage policies, process claims, and verify travel documents. Also, the mobile technology is playing a significant role, with insurers developing apps for policy management, claims filing, and real-time customer communication which provides travel insurance market opportunity.

Competitive Analysis

Competitive analysis and profiles of the major players in the travel insurance industry include American International Group, Inc., Assicurazioni Generali S.P.A., Aviva, AXA, Zurich, Just Travel Cover, PassportCard, Trailfinders Ltd., Staysure, and Insurefor.com. Major players have adopted product launch, partnership, expansion and acquisition as key developmental strategies to improve the product portfolio and gain strong foothold in the travel insurance industry.

Recent Developments in the Global Travel Insurance Industry

  • In September 2020, Insurefor.com has updated its policies, which is making it the first travel insurance market brand to provide cover when travelling against FCO advice whilst simultaneously protecting consumers against COVID-related issues both pre-departure and whilst abroad

  • In May 2022, Trip.com and AXA Partners announced a significant European expansion of new travel insurance products for German and French travellers. The two new insurance solutions provide a range of benefits such as medical, cancellation and baggage cover, which is selected while booking a flight on Trip.com. The cancellation-only ‘Basic’ insurance solution has proven especially popular in mainland Europe as travellers seek reassurance when booking their next trip and includes coverage if the trips are cancelled due to Covid. Whilst the Travel Plus medical insurance policy, made available to UK customers in September 2021, crucially protects customers for cancellation and medical costs if they contract COVID-19

  • In March 2024, Zurich Insurance partnered with travel and leisure e-commerce platform Klook to introduce FlyEasy coverage, which, powered by Zurich Edge platform with micro-services from Blink Parametric, aims to reduce customer stress from long flight delays at airports

  • In October 2023, Travel Insured International (Travel Insured), a leading travel insurance market provider, engaged Robin Assist, a tech-driven emergency travel assistance platform, to deliver responsive customer service, emergency travel and medical assistance, and claims to its insureds from any device, anytime, anywhere. The alliance provides Travel Insured’s customers with 24/7 support to help mitigate travel risk, and together with the Robin Assist team, service is available to travellers worldwide

Top Impacting Factors

Rapid growth in tourism

The rapid growth in tourism is driving the growth of travel insurance market owing to the increase in travel volumes continue to surge, both domestically and internationally, the demand for travel insurance products has increased significantly. As the tourism sector grows, more people travel, by which increasing the chance of unexpected problems such as medical emergencies, lost luggage, airline cancellations, and natural catastrophes. The rise in travel activities increases the need for travel insurance as passengers seek financial protection against these risks. Rising demand for  travel health insurance, increasing tourism for international travel, the aging population, and regulatory requirements  for insurance which drive the market growth.

In addition, the surge in global travel, driven by factors such as increased disposable money, package trips, and easy internet bookings, raised traveler awareness of the significance of travel insurance. As more consumers recognize the potential inconveniences and financial losses connected with travel disasters, the demand for travel insurance market grows. For instance, a recent survey of 4,700 respondents from 11 countries around the world, conducted by the International Air Transport Association (IATA) in 2021, revealed that 57% of them were expected to be traveling within two months of the pandemic’s containment, and 72% of them are anticipated to do so as soon as they can meet friends and family. 

Convenient shopping due to online comparison sites

Consumer preferences are changing and gaining seamless experience for travel insurance purchases with increase in use of internet for online comparison-shopping. Online portals such as direct airline sites and online travel agencies (OTAs) and company websites & applications which drive the growth of the online insurance market, spreading awareness among users in the market. In addition, these online sites typically offer limited options from a single company, providing travelers with the easiest way to compare and buy travel insurance coverages from top-rated providers in the market. As a result, comparison shopping through online sites is expected to fuel the growth of the travel insurance premium during the forecast period. For instance, in 2022, a study conducted by TravelInsurance.com compared different multiple travel insurance companies and projected online comparison sites to be the fastest growing sales channel for the travel insurance industry in the market.

Travel rules and regulations

Travel insurance providers in the market have adopted several model acts, strategies, and regulations to sustain in the competitive environment. For instance, in April 2022, AXA Partners, an AXA business unit, offering a wide range of solutions in assistance services, travel, and specialized insurance and credit protection, partnered with Trip.com to further expand the travel insurance product in Europe. Further, new approaches by regulatory bodies include development of prospective legislation and enforcement activity, accelerating growth of travel protection products and services in the industry. 

The combination of enforcement & development of model laws drives growth of travel insurance premiums; thereby, modernizing unique nature of travel protection offerings across the industry. For instance, in the U.S., the National Association of Insurance Commissioners (NAIC) proposed a new model act to promote public welfare and a comprehensive legal framework within the travel insurance industry. In addition, the regulatory body implemented a significant step for the industry to address growth in consumer needs with standard laws and regulations. Thus, travel rules and regulations drive the travel insurance market growth.

Key Benefits for Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the travel insurance market analysis from 2022 to 2032 to identify the prevailing market opportunities.

  • The market research is offered along with information related to key drivers, restraints, and opportunities.

  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.

  • In-depth analysis of the travel insurance market segmentation assists to determine the prevailing market opportunities.

  • Major countries in each region are mapped according to their revenue contribution to the global market.

  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.

  • The report includes the analysis of the regional as well as global travel insurance market trends, key players, market segments, application areas, and market growth strategies.

Travel Insurance Market Report Highlights

Aspects Details
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Market Size By 2032

USD 106.8 billion

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Growth Rate

CAGR of 20.1%

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Forecast period

2022 - 2032

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Report Pages

381

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By Age Group
  • Above 50
  • 1-17 Years Old
  • 18-30 Years Old
  • 31-49 Years Old
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By Insurance Cover
  • Single-Trip Travel Insurance
  • Annual Multi-Trip Travel Insurance
  • Long-Stay Travel Insurance
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By Distribution Channel
  • Insurance Intermediaries
  • Insurance Companies
  • Banks
  • Insurance Brokers
  • Insurance Aggregators
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By End User
  • Senior Citizens
  • Education Travelers
  • Business Travelers
  • Family Travelers
  • Others
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By Region
  • North America  (U.S., Canada)
  • Europe  (UK, Germany, France, Norway, Netherlands, Spain, Italy, Switzerland, Finland, Belgium, Russia, Sweden, Austria, Rest of Europe)
  • Asia-Pacific  (China, Japan, Australia, Hong Kong, South Korea, Malaysia, Singapore, New Zealand, Rest of Asia-Pacific)
  • LAMEA  (Brazil, Argentina, Rest of Latin America, Middle East, Africa)
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Key Market Players

Insurefor.com, Trailfinders Ltd., PassportCard, Aviva, Assicurazioni Generali S.p.A., Zurich Insurance Group, Staysure, Just Travel Cover, AXA, American International Group, Inc.

Analyst Review

The travel insurance market is experiencing significant growth due to the increased number of travelers and the availability of travel insurance through online vendors and intermediaries which contributed to a surge in adoption. This presents an opportunity for companies to capitalize on the growing customer base.

In addition, the partnerships and acquisitions by key players provide several opportunities for market growth. For instance, in June 2023, Blink Parametric and Newpoint's GetCover.com entered a strategic partnership to introduce a range of customized online travel insurance products. The collaboration focuses on incorporating a cutting-edge parametric flight delay solution into the travel insurance policies, catering to eligible policyholders. This innovative offering leverages real-time data to provide timely coverage and compensation in the event of flight delays. The partnership aims to enhance the overall travel insurance experience by offering tailored solutions that address the specific needs and concerns of travelers. 

Furthermore, 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 2023, FijiCare launched a new travel insurance product. The comprehensive travel insurance product includes coverage for medical expenses, including hospitalization and COVID-19 coverage, the repatriation of mortal remains, accidental death, and trip curtailment.
 

Author Name(s) : Bias Dey | Onkar Sumant
Frequently Asked Questions?

The travel insurance market is estimated to grow at a CAGR of 20.1% from 2023 to 2032.

The travel insurance market is projected to reach $106.8 billion by 2032.

Rapid growth in tourism, convenient shopping due to online comparison sites and travel rules and regulations majorly contribute toward the growth of the market.

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.

The key growth strategies of travel insurance market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.

The forecast period for travel insurance market is 2023 to 2032.

Travel insurance is a type of insurance coverage designed to protect travelers against a range of unforeseen events and risks that can occur before or during a trip.

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Travel Insurance Market

Global Opportunity Analysis and Industry Forecast, 2023-2032