Travel Insurance Market is expected to reach USD 58.40 billion by 2030

The rising popularity of online platforms for planning travel insurance plans will propel the travel insurance market during the forecast period.

The Global Travel insurance Market is valued at USD 21.85 billion in 2023 and is predicted to reach USD 58.40 billion by 2030, with a CAGR of 14.0% from 2024 to 2030 according to new research by Next Move Strategy Consulting.

The proliferation of online platforms has profound impact on the expansion of the travel insurance industry. These platforms offer convenience, flexibility, and transparency, empowering travelers to compare different insurance options, scrutinize policy details, and make well-informed decisions.

In addition, the accessibility of these platforms via mobile devices streamlines the insurance procurement process, making it swift, efficient, and user-friendly. This accessibility not only attracts new customers but also accelerates the widespread adoption of insurance products.

The emergence of online insurance platforms such as Squaremouth, TravelInsurance.com, and InsureMyTrip has transformed the landscape of insurance acquisition for travelers. 

These platforms facilitate easy navigation through a diverse range of insurance plans, enabling users to compare coverage benefits and prices before selecting the policy that best suits their travel needs.

By simplifying the insurance shopping experience, these platforms not only enhance customer convenience but also drive greater market penetration and engagement.

Moreover, the increasing wealth and disposable income of individuals in developed counties such as the U.S., Germany and Japan is driving the adoption of travel insurances. 

As incomes rises, individuals have the financial capacity to board on more frequent trips and indulge in premium travel experiences, including luxury vacations and international adventures.

According to the Organization for Economic Cooperation and Development (OECD), the global net average household disposable per capita income for the year 2023 is accounted with an estimation of USD 30,490 per year.

Moreover, the average net-adjusted disposable income for top 20% of the population accounts with an estimated value of USD 59,336 annually, whereas the bottom 20% have an estimated rate of USD 9,060 in a year. This increased level of income plays a significant role in promoting the growth of the travel insurance industry.

However, regulatory challenges in the travel insurance market include diverse and complex regulations imposed by governmental authorities across county, restrain the market growth.

On the contrary, introduction of blockchain technology offers a significant opportunity for enhancing transparency and security within the travel insurance industry.

By leveraging decentralized digital ledgers, insurers can establish immutable records of transactions, policies, and claims, minimizing the risk of fraud and ensuring data integrity.

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According to the report, leading players in the travel insurance market include Allianz Group, AXA SA, Zurich Insurance Group Limited, American International Group, Inc., Chubb Limited, Aviva PLC, Nationwide, Berkshire Hathaway Speciality Insurance, Travel Insured International, Generali Group and Others, and others.These market players are adopting strategies such as partnership and product launches across various regions to maintain their dominance in the travel insurance market.

Also in January 2024, Aviva launched a comprehensive wellness package to enhance its group accident and travel insurance offerings, providing added value to customers.

This includes mental health help, discounts on health products, support for cancer patients, and counselling. It's the first of its kind and aims to help employees with their mental health and overall wellness.

Moreover, in January 2024, Allianz Partners launched the Allyz mobile app, offering digital insurance, assistance, and travel-related services, offering customers a comprehensive suite of digital solutions for their insurance needs.

In addition, in April 2023, Generali Group launched Generali Malaysia following the acquisition of a controlling majority in AXA Affin joint ventures in Malaysia and the complete purchase of MPI Generali Insurans.

The integration under a single brand, Generali Malaysia, aims to enhance customer experience and provide comprehensive protection solutions across various insurance sectors such as travel, health, and motor.

Key Insights from the Travel insurance Market Report:

• The information related to key drivers, restraints, and opportunities and their impact on the travel insurance market is provided in the report.

• The value chain analysis in the market study provides a clear picture of the roles of each stakeholder.

• The market share of the global travel insurance market and their competitive analysis are provided in the report.

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