Baggage and Personal Belongings Coverage (B&PBC) Travel Insurance Market

Baggage and Personal Belongings Coverage (B&PBC) Travel Insurance Industry Outlook

The global Baggage and Personal Belongings Coverage (B&PBC) Travel Insurance Market size was valued at USD 69.2 million in 2024 and is expected to be valued at USD 75.6 million in 2025. The industry is projected to grow, reaching USD 160.6 million by 2030 with a CAGR of 17.4% between 2025-2030.

Baggage and personal belongings coverage travel insurance means the coverage for traveler against loss, theft, damage of baggage and personal effects while on trip. This market targets an increasingly important need that is to provide security and guarantee to travelers including travel expenses for repair or replacement of personal items. 

Being a segment of global traveling insurance policies this market targets to provide security and assuredness to the travelers and give them an ability to control the risks associated with personal belongings while traveling. This type of insurance is still developing as insurance companies try to answer the increasing need for coverage to protect against loss when traveling.

Persistent Global Volume of Mishandled Baggage Continues to Drive Demand for Coverage

Baggage mishandling continues to impact millions of passengers each year despite improvements in airline technology and tracking systems. In 2024, approximately 33.4 million bags were mishandled worldwide, covering lost, delayed, and damaged cases. This figure highlights that even though mishandling rates per passenger are improving, the rising number of travelers results in large absolute volumes of affected baggage. Such persistent issues fuel travelers’ demand for insurance that covers financial losses, replacement essentials, and peace of mind.

Delays Remain the Largest Contributor to Baggage Mishandling and Boost Insurance Adoption

Among all baggage-related issues, delays remain the largest contributor to mishandling incidents. In 2024, data showed that more than two-thirds of mishandled baggage cases were delayed but successfully reunited with their owners within 48 hours. While delays are resolved, the inconvenience forces travelers to purchase essential items, leading to financial stress. Insurance coverage that reimburses these costs is becoming increasingly attractive, as passengers seek assurance that temporary baggage unavailability will not disrupt their travel experiences.

Increasing Travel Disruptions and Consumer Awareness are Driving the Demand for Protection

Travel disruptions due to unpredictable events such as weather, labor strikes, and airport congestion have heightened travelers’ awareness of the importance of financial protection. With record international tourism in 2024, these risks are more visible than ever. As baggage is an essential part of every journey, the potential for loss or damage is a major concern. Increasingly, travelers see baggage and personal belongings coverage as a safeguard against uncertainty, helping protect their valuables while reducing stress during unforeseen disruptions.

The Risk of Fraud in Baggage Claims Continues to Restrain Market Growth

One of the persistent restraints in the baggage and personal belongings coverage travel insurance market growth is the risk of fraudulent or exaggerated claims. Insurers face difficulties verifying whether claimed losses are genuine, leading to higher administrative costs and longer settlement times. 

Fraudulent baggage claims, though underreported publicly, are a well-recognized challenge within the insurance industry. This issue forces insurers to adopt stricter claim validation procedures, which frustrate legitimate customers and slow down payouts. The risk of fraud remains a limiting factor in the baggage and personal belongings coverage travel insurance industry.

Opportunities are Emerging Through Smart Baggage Tracking and Digital Insurance Solutions

The integration of advanced technologies into baggage management creates strong opportunities for insurers. According to SITA, 47% of passengers in recent surveys said that real-time mobile baggage tracking would significantly improve their confidence in checking luggage, while 38% showed interest in digital ID tags. 

By combining these solutions with baggage insurance, providers offer faster claim verification, reduce fraud, and deliver greater transparency. Such innovation positions insurers to meet modern traveler expectations and expand adoption of baggage protection products.

Market Segmentations and Scope of the Study

The baggage and personal belongings coverage travel insurance market report is segmented by travel type, by product type, coverage type, distribution channel, end-user and region. On the basis of travel type, the market is divided into domestic and international trips. Based on product type, the market is classified into single trip baggageinsurance, multi-trip baggage insurance, and others. On the basis of coverage type the market is divided intodelayed baggage, lost baggage, and stolen belongings. On the basis of distribution channel, the market is bifurcated into online and offline. On the basis of end-user, the market is characterized into individuals, corporate travellers, and others. Regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America region holds the dominant share of the baggage and personal belongings coverage travel insurance market trends and is expected to continue its dominance during the forecast period. This is attributed to the growth in tourism in this region along with the expanding interest among individuals to explore various parts of the world. As the frequency of people exploring countries increases, the risk of luggage’s being misplaced also increases.

Also, Zurich’s December 2024 acquisition of AIG’s global personal travel business (including Travel Guard) materially shifted North American leadership, the combined Zurich Cover-More now serves ~20 million customers and significantly increases U.S. distribution and capabilities, strengthening baggage/personal-belongings product reach via airline, OTA and cruise channels. 

Major incumbents (Allianz Partners, Chubb, Tokio Marine HCC/WorldTrips) remain active; Allianz rolled out digital and partner solutions in the U.S. in 2024–25 while WorldTrips/Tokio Marine HCC continue targeted product improvements with high baggage limits.

Europe’s baggage and personal belongings coverage travel insurance market share is strongly influenced by high intra-regional travel within the Schengen Area, which increases exposure to baggage-related incidents and drives insurance demand. Cultural tendencies toward comprehensive coverage, coupled with higher disposable incomes in countries such as Germany, France, and the UK, support sustained growth. 

Major insurers like, Allianz Partners, documented airline and travel-partner deals, and new product lines and digital platforms have kept Allianz highly visible across European bag-and-belongings offerings in 2024–2025. At the same time Zurich’s enlarged Cover-More (post-AIG deal) has explicit plans to operate across EMEA under the unified model, making it the primary challenger to Allianz’s leadership in coverage distribution and partner integration. Expect Allianz to retain short-term dominance, with Zurich Cover-More competing strongly in coming years.

Asia-Pacific is a rapidly growing region for the baggage and personal belongings coverage travel insurance market expansion, propelled by an expanding middle class in countries such as China, India, and Australia. Rising awareness of travel insurance benefits, increasing outbound travel, and significant improvements in tourism and transportation infrastructure create fertile conditions for market expansion. 

Companies such as, Cover-More already hold strong market positions across Australia, India and ANZ and the 2024–25 integration of AIG’s travel assets accelerates scale and distribution in APAC. Allianz continues country launches and branding moves, while Chubb keeps expanding local partnerships and senior APAC hires to support distribution of baggage/personal-belongings add-ons. The enlarged Zurich Cover-More is best positioned to lead APAC share growth in the coming years.

In Latin America, the Middle East, and Africa, the baggage and personal belongings coverage travel insurance market demand is shaped by increasing tourism and cross-border travel. While economic variability limit disposable income for insurance purchases, growing awareness and urbanization are steadily expanding the potential customer base. 

Regulatory diversity across countries poses challenges to standardization, but targeted product offerings from Allianz, Zurich Cover-More, and Tokio Marine HCC/WorldTrips help capture emerging opportunities. These regions present significant growth potential, particularly as tourism infrastructure develops and travel insurance penetration increases.

Strategic Analysis Adopted by Key Players

Key players in the baggage and personal belongings coverage travel insurance industry continue to adopt strategies such as product launches, partnerships, acquisitions, and business expansions to strengthen market position.

• In December 2024, Zurich’s Cover-More company completed the acquisition of AIG’s global personal travel business, including Travel Guard, expanding its reach across North America, Europe, and APAC. Executive appointments and digital platform upgrades improve customer experience and streamline claims processing, solidifying Zurich Cover-More’s leadership in global travel insurance and enhancing brand visibility.

• In November, 2024, Allianz Partners launched the TravelSmart mobile app, providing travelers real-time assistance, policy management, and digital claims support. The company also strengthened partnerships with airlines and cruise operators across Europe and the U.S., emphasizing innovation and customer-centric services. These initiatives enhance market share, reinforce brand credibility, and position Allianz as a top competitor in the baggage coverage segment.

• In 2024, Chubb expanded its travel insurance offerings with flexible plans covering baggage loss, damage, and delays, while maintaining global distribution channels and strong insurer reputation. Emphasis on reliability and comprehensive protection enhances customer trust and supports long-term growth in competitive markets.

• In October 2024, Tokio Marine HCC, through its WorldTrips division, was named Best Travel Insurance Company of 2024 by USA Today Blueprint. The company continued to enhance its customizable plans covering baggage and personal belongings, focusing on customer satisfaction and brand differentiation, which strengthens its competitive positioning.

• In 2024, Generali Global Assistance’s Premium plan offered coverage up to USD 2,000 per person for lost, damaged, or stolen baggage, supported by 24/7 multilingual assistance. This customer-focused approach improves service accessibility, strengthens brand visibility, and supports growth in diverse travel markets.

Key Benefits

• The report provides quantitative analysis and estimations of the sector from 2025 to 2030, which assists in identifying the prevailing baggage and personal belongings coverage travel insurance market opportunities.

• The study comprises a deep-dive analysis of the current and future baggage and personal belongings coverage travel insurance market trends to depict prevalent investment pockets in the industry.

• Information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report. 

• Competitive analysis of the key players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the baggage and personal belongings coverage travel insurance market study.

• Value chain analysis in the market study provides a clear picture of the roles of stakeholders.

Baggage and Personal Belongings Coverage (B&PBC) Travel Insurance Market Key Segments

By Travel type

• Domestic trips

• International trips

• By Product Type

• Single Trip BaggageInsurance

• Multi-Trip Baggage Insurance

• Others

By Coverage Type

• Delayed Baggage

• Lost Baggage

• Stolen Belongings

• Damaged baggage

By Insurance Offering Type

• Comprehensivewith baggage cover

• Standalone baggage-only

By Distribution Channel

• Online

• Offline

By End-User

• Individual travelers

• Corporate Travelers

• Family travelers

• Student travelers

• Tour and group travelers

• Others

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific 

• RoW

  • Latin America

  • Middle East 

  • Africa

Key Players

• Reliance General Insurance

• AGA Service Company

• Travel Guard

• Seven Corners Inc. 

• World Nomads Travel Insurance

• AXA S.A.

• Aetna International 

• Tata AIG 

• Berkshire Hathaway Specialty Insurance Company

• Chubb Limited

• Niva Bupa

• Care Health Insurance

• Chola MS General Insurance

• Royal Sundaram General Insurance Co. Limited

• Shriram General Insurance

Report Scope and Segmentation: