Travel Insurance Market by Age (Millennials, Generation X, and Baby Boomers), by Income Level (Low-income travelers, Middle-income travelers and High-Income Travelers), by Coverage (Medical Coverage, Trip Cancellation Coverage, Baggage and Personal Belongings Coverage, Accidental Death and Dismemberment (AD&D) Coverage), by Days of coverage (Short-Trip Insurance, Standard Trip Insurance, Extended Trip Insurance and Multi-Trip Insurance) by End User (Pilgrim Travelers, Education Travelers, Business Travelers and Family Travelers) by Distributional Channel (Insurance Companies, Banks, Airlines, Online Platforms, Insurance Aggregators & Comparison Websites, and Travel Agents & Tour Operators) – Global Opportunity Analysis and Industry Forecast, 2024–2030

Market Overview

The Travel Insurance Market size was 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.

Travel insurance is a specialized insurance designed to offer protection and coverage to travelers against a wide range of potential risks and unforeseen circumstances that can occur before or during their journeys. It serves as a crucial tool in mitigating the financial impact of various travel-related emergencies, disruptions, and inconveniences, providing travelers with peace of mind and security throughout their trips. One of the primary advantages of travel insurance is its ability to provide financial reimbursement and assistance in the event of trip cancellations or interruptions. This coverage extends to unforeseen circumstances such as illness, injury, or emergencies, allowing travelers to recoup non-refundable expenses incurred for flights, accommodations, and other pre-paid arrangements. 

The versatility of travel insurance extends beyond individual travelers to encompass families, corporate travelers, and group tours, catering to diverse needs and preferences within the travel industry. It offers a range of policy options, including single-trip, multi-trip, and annual policies, as well as specialized coverage for specific types of travel, such as adventure sports, cruises, or business trips. Its comprehensive coverage and range of benefits make it an essential investment for travelers seeking to safeguard their trips and ensure a smooth and hassle-free travel experience.

Rising Number of Outbound Travelers Boost the Market Growth

The rising number of global travels is a significant factor driving the growth of the travel insurance market. With more individuals undertaking domestic and international trips for various purposes such as leisure, business, and exploration, there is a growing awareness of the importance of protecting these journeys against unforeseen events. 

Travelers recognize the need to safeguard themselves against potential risks such as trip cancellations, medical emergencies, or lost luggage, leading to an increased demand for travel insurance. Statistics from sources such as the National Travel and Tourism Office (NTTO) and International Trade Administration (ITA) indicate a substantial rise in international air passenger travel.

For example, data shows that in March 2023, international air passenger travel reached 19.687 million, representing a significant increase of 41.7% compared to March 2022. This surge in travel activity creates a larger customer base for travel insurance providers, thereby fostering market expansion and growth opportunities.

Moreover, the growing accessibility and affordability of travel contribute to the escalating demand for travel insurance. The emergence of budget airlines and accommodation options has made travel more attainable for a broader demographic, encouraging more individuals to embark on trips.

For instance, Turkish airline 'Ajet' plans to launch budget flights across Europe, including a direct service from London to Istanbul, in March 2024. The company aims to expand its fleet to 200 aircraft and operate flights to 41 domestic and 52 international destinations within the next decade. This accessibility and affordability of travel options contribute to the increasing adoption of travel insurance among travelers.

The Growing Number of Online Platforms for Travel Insurance Drives the Industry

The expansion of online platforms has significantly impacted the growth of the travel insurance industry. With the widespread use of the internet, consumers have easy access to a variety of online channels for purchasing travel insurance. Online platforms offer convenience, flexibility, and transparency which allows travelers to compare different insurance options, review policy details, and make informed decisions.

Moreover, the rise of mobile applications dedicated to travel insurance has further democratized access to coverage. With the prevalence of smartphones and tablets, travelers have the ability to seamlessly purchase insurance directly from their handheld devices, circumventing the need for lengthy paperwork or in-person consultations.

This mobile accessibility transforms the insurance procurement process into a swift, efficient, and user-friendly endeavor, thereby enticing new customers and catalyzing the widespread adoption of insurance products. The advent of online insurance platforms such as Squaremouth, TravelInsurance.com, and InsureMyTrip has revolutionized the way travelers’ access and purchase insurance.

These platforms serve as centralized hubs where individuals can easily navigate through a diverse array of insurance plans, compare coverage benefits and prices, and ultimately select the policy that best aligns with their travel requirements. By streamlining the insurance shopping experience, these platforms not only enhance customer convenience but also foster greater market penetration and engagement.

Regulatory Challenges Hinder the Market Growth

Regulatory challenges in the travel insurance market include diverse and complex regulations imposed by governmental authorities across county. Insurance providers operating internationally face significant administrative burdens and costs in ensuring compliance with these regulations, which cover aspects such as licensing, consumer protection, sales practices, and policy terms. Meeting regulatory requirements involve establishing local entities, obtaining licenses, appointing legal representatives, and adapting products and marketing strategies to align with local laws.

Integration of Blockchain Technology Creates Ample Opportunity for the Market Growth

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.

Smart contracts, which automate contract execution based on predefined conditions, streamline processes such as policy issuance and claims processing, reducing administrative overhead and enhancing efficiency. The transparency provided by blockchain technology empowers insurance providers to securely access and authenticate transactional data. This transparency builds a sense of trust between insurers and policyholders.

North American Region Dominates the Travel Insurance Market 

The North American region holds the 41.7% share of the global travel insurance market due to rising number of people travelling from the U.S. to other international countries for career opportunities positively impacts the growth of the travel insurance industry.

According to a data published by The U.S. Department of Commerce, the U.S. positions itself at the forefront in North America in terms of outbound travelers, with approximately 80.7 million travelers recorded in 2022. Moreover, the proactive initiatives implemented by leading industry participants in the North America travel insurance market underscore a vibrant and evolving marketplace, characterized by innovation and adaptation to meet the diverse needs of travelers worldwide.

As an example, in January 2024, the partnership between AXA travel insurance and Kiwi.com offers comprehensive coverage for travelers, including medical expenses, assistance, lost baggage, liability, flight delays, and cancellations to have a secured journey through their trip in the region. It offers different insurance plans including Silver, Gold, and Platinum, each with varying levels of coverage to suit different travel needs.

Furthermore, the increasing trend of Mexican nationals venturing abroad for educational and academic pursuits boost the market growth. This demographic's rising demand for travel insurance contributes significantly to the expansion of the sector in region.

Furthermore, strategic partnerships within the industry contribute to the growth trajectory. In May 2023, Volaris, a budget-friendly Mexican airline service provider, partnered with Cover Genius to offer customers comprehensive travel protection options.

This collaboration allows Volaris customers to access a range of travel insurance coverage, including medical insurance, baggage protection, and flight cancellation insurance, at the time of booking flights. Such initiatives enhance the accessibility and awareness of travel insurance among Mexican travelers, promoting a financially secured journey during their travels.

Asia-Pacific is expected to show steady growth in the Travel Insurance market with a CAGR of 24.3%

Asia-Pacific is expected to witness an increased demand for the travel insurance market, due to substantial increase in demand among Indian travelers, particularly the elderly segment, seeking medical care and treatments abroad.

In response to this, in March 2024, the TATA AIG General Insurance Company's unveiled its new Travel Guard Plus that represents a significant development in the region. The product's comprehensive coverage, which includes both travel medical and non-medical contingencies, addresses a range of potential risks faced by travelers.

The inclusion of coverage for injuries, illnesses, disablement, and accidental death while overseas addresses the crucial aspect of medical emergencies that travelers may encounter during their trips. This aspect is particularly important given the uncertainties associated with health and medical facilities in foreign countries.

Moreover, the travel insurance market in the region is experiencing significant growth due to rising awareness regarding travel insurance among the population. A report by the major insurance firm MSIG Singapore, published in 2022, revealed that more than 80% of Singaporeans seek to purchase travel insurance for foreign travels, highlighting the growing awareness among Singaporean travelers regarding the importance of securing financial protection and security while abroad.

Furthermore, the presence of major regional and global players in the region, including Income, Seedly, and MSIG Singapore, among others, has significantly contributed to driving market growth. These established players continually engage in innovations and developments within the country, introducing new products and features to meet the evolving needs and preferences of consumers.

For instance, in November 2023, Seedly launched a new travel insurance product specifically designed to cater to a wide range of customers in Singapore, including families and adventure enthusiasts. Notably, this innovative product includes a child companion benefit, covering the expenses for an adult to travel from Singapore to accompany a child back home in the event of the insured parent being hospitalized overseas.

Additionally, customers are automatically covered for adventurous sports activities such as mountaineering, hiking, or scuba diving, without the need for any extra fees or add-ons. As major players in the market continue to innovate and refine their offerings, the travel insurance industry in the region is poised for further expansion and development, catering to the diverse needs of travelers in the region.

Competitive Landscape  

Several market players operating in the global 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. These market players are adopting strategies, such as product launches and partnership to maintain their dominance global in the market.

For instance, in March 2024, Zurich Insurance partnered with Klook, a travel and e-commerce company, to introduce a service called FlyEasy, aiming to ease the inconvenience of flight delays for travelers by providing free access to airport lounges globally when flights are delayed for over two hours.

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.

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.

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.

Furthermore, in October 2023, Travel Insured International partnered with Robin Assist to enhance customer claims and emergency travel assistance services. This collaboration aims to provide travelers with streamlined claims processing and comprehensive emergency assistance, ensuring a seamless and worry-free travel experience.

Key Market Segments

By Age    

• Millennials

• Generation X 

• Baby Boomers

By Income Level    

• Low-income travelers

• Middle-income travelers

• High-income travelers

By Coverage

• Medical Coverage

• Trip Cancellation Coverage

• Baggage and Personal Belongings Coverage

• Accidental Death and Dismemberment (AD&D) Coverage

By Days of Coverage

• Short-Trip Insurance 

• Standard Trip Insurance 

• Extended Trip Insurance 

• Multi-Trip Insurance

By End User

• Pilgrim Travelers

• Education Travelers

• Business Travelers

• Family Travelers

By Distributional Channel

• Insurance Companies

• Banks

• Airlines

• Online Platforms

• Insurance Aggregators and Comparison Websites

• Travel Agents and Tour Operators

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

  • Hong Kong

  • GBA (excluding Hongkong)

  • Rest of Asia-Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

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