Trip Cancellation Coverage Travel Insurance Market

Trip Cancellation Coverage Travel Insurance Industry Outlook

The global Trip Cancellation Coverage Travel Insurance Market size is valued at USD 26.54 billion in 2024 and is estimated to reach USD 31.37 billion in 2025 and is predicted to reach USD 58.40 billion by 2030 with a CAGR of 14.05% from 2025-2030. 

The market is witnessing steady growth driven by increasing corporate travel risk management practices, rising travel disruptions, and the growing impact of extreme weather events on global mobility. Businesses are adopting comprehensive cancellation coverage to safeguard employees and reduce financial losses from last-minute changes, while individual travellers are seeking protection against flight delays, cancellations, and unpredictable climate-related disruptions. 

However, high premiums and limited awareness among travellers remain key restraints, particularly in price-sensitive regions. At the same time, the expanding global tourism industry, fuelled by rising demand for international and luxury travel, presents significant opportunities for insurers to broaden their offerings and capture a larger customer base.

Corporate Travel Risk Management Fuels the Market Expansion

Corporate travel risk management is emerging as a key driver of the trip cancellation coverage travel insurance market growth, as businesses increasingly prioritize employee safety and financial protection while meeting their duty of care obligations. Business travel involves high costs, last-minute bookings, and exposure to risks such as flight cancellations, health emergencies, geopolitical instability, or sudden work-related changes. 

By integrating trip cancellation insurance into corporate travel policies, organizations mitigate financial losses from unused bookings and ensure employee well-being, making comprehensive cancellation coverage an essential component of modern corporate risk management strategies.

Higher Travel Disruption Risk Boosts the Market Demand

Higher travel disruption risk is a major driver of the trip cancellation coverage travel insurance market demand, as travelers face growing uncertainties related to flight delays, cancellations, and operational challenges in the aviation sector. Factors such as airline staffing shortages, strikes, air traffic control restrictions, and congested travel hubs have significantly increased the likelihood of disrupted itineraries, leading to financial losses from non-refundable bookings. 

As a result, more leisure and business travelers are seeking trip cancellation coverage to safeguard their travel investments, boosting demand for travel insurance products that provide reimbursement and peace of mind against these rising disruption risks.

Climate and Extreme Weather Events Drives the Market Growth

Climate and extreme weather events are becoming a significant driver of the trip cancellation coverage travel insurance market expansion, as the rising frequency of hurricanes, floods, wildfires, heatwaves, and other severe weather conditions increasingly disrupt travel plans worldwide. These unpredictable events lead to flight cancellations, delays, and destination inaccessibility, resulting in substantial financial losses for travelers due to non-refundable tickets, hotel bookings, or tour packages. 

Growing awareness of climate-related risks is pushing both leisure and business travelers to opt for comprehensive cancellation coverage, thereby fueling market demand for travel insurance that provides financial protection and flexibility in the face of extreme weather uncertainties.

High Cost of Premiums and Limited Awareness Among Travelers Limits the Market Growth

One key restraint of the trip cancellation coverage travel insurance market trends is the high cost of premiums and limited awareness among travelers. Many travelers, especially in price-sensitive markets, perceive travel insurance as an added expense rather than a necessity, leading to low adoption rates. 

Premiums for comprehensive policies, including “Cancel for Any Reason” coverage, are significantly higher than standard plans, discouraging budget-conscious consumers. In addition, a lack of awareness about the benefits of cancellation coverage, coupled with misconceptions about claim procedures and exclusions, further limits industry penetration, especially in developing regions.

Rise in the Tourism Industry Creates New Growth Opportunities for the Market

The rise in the tourism industry creates a significant opportunity for the market, as the rapid growth in global travel expands the customer base and increases demand for financial protection. Travelers are investing more in international trips, cruises, and premium holiday packages, which carry higher risks of costly cancellations. 

According to the World Travel & Tourism Council in 2025, Travel & Tourism is expected to contribute an all-time high of USD 11.7 trillion to the global economy, accounting for 10.3% of global GDP, highlighting the strong momentum of the sector. This surge in tourism activity amplifies the need for comprehensive trip cancellation coverage, enabling insurers to tap into new segments and capture greater market share worldwide.

Market Segmentations and Scope of the Study

The trip cancellation coverage travel insurance market report is segmented on the basis of trip, coverage, policy tenure, age, duration, end-user, distribution, and region. On the basis of trip, the market is segmented into domestic trips and international trips. On the basis of coverage, the market is divided into standalone trip cancellation coverage, cancel for any reason (CFAR), and comprehensive travel insurance plans. On the basis of policy tenure, the market is segmented into single-trip and annual/multi-trip. On the basis of age, the market is categorized into millennials, Generation X, and baby boomers. On the basis of duration, the market is segmented into short-term and long-term. On the basis of distribution, the market is segmented into direct sales, travel agencies & tour operators, insurance brokers, banks & financial institutions, and online platforms. On the basis of end-user, the market is divided into corporate travelers, leisure travelers, education travelers, group travelers, family travelers, and pilgrim travelers. The regional breakdown includes North America, Europe, Asia-Pacific, and the Rest of the World (RoW).

Geographical Analysis

One key driver of the trip cancellation coverage travel insurance market share in North America is the high incidence of travel disruptions caused by airline operational challenges and extreme weather events. The region frequently experiences flight cancellations and delays due to snowstorms, hurricanes, and other adverse weather conditions, alongside labor strikes and airline staffing shortages. 

Given the high cost of air travel, hotel stays, and vacation packages in the U.S. and Canada, travelers are increasingly seeking trip cancellation coverage to safeguard their non-refundable expenses. This strong need for financial protection and peace of mind is fueling steady demand for cancellation insurance products across North America.

The rise in disposable income is a key driver of the trip cancellation coverage travel insurance market in Europe, as higher earning capacity enables consumers to spend more on international holidays, luxury travel, and long-duration trips. With greater financial investment in premium vacation packages, cruises, and multi-destination tours, travelers are more conscious of the risks associated with unforeseen cancellations and are willing to pay extra for protection. As disposable incomes continue to grow across major European economies, demand for comprehensive trip cancellation coverage is increasing, as travelers seek to secure their financial commitments and enjoy worry-free travel experiences.

The rise in the tourism industry is a significant driver of the market in Asia Pacific, supported by growing middle-class populations, improved connectivity, and rising demand for premium travel experiences. Travelers across the region are increasingly investing in high-value holidays, cruises, and multi-destination packages, which heighten the financial risks associated with cancellations. 

According to India Brand Equity Foundation (IBEF) in 2025, the luxury travel market in India is expected to grow at a rate of 9.8% during 2024–30, reaching USD 123.7 billion by CY30, reflecting the region’s strong shift toward upscale tourism. This surge in tourism and luxury travel is fueling demand for comprehensive trip cancellation coverage, as travelers seek to safeguard their significant financial commitments and enjoy greater peace of mind.

Another key driver of the market in the rest of the world (RoW), is the increasing vulnerability to geopolitical and health-related uncertainties. Regions in Latin America, the Middle East, and parts of Africa face political instability, civil unrest, or sudden regulatory changes that disrupt travel plans. 

Additionally, the lingering impact of global health crises and the risk of new outbreaks have heightened traveler awareness of potential cancellations. As a result, more tourists and business travelers in these regions are turning to trip cancellation coverage to mitigate financial losses from non-refundable bookings, supporting steady market growth beyond the major travel hubs.

Strategic Innovations Adopted by Key Players

Key players in the trip cancellation coverage travel insurance industry are driving market growth through strategic acquisitions, digital platform collaborations, and customer-centric product innovations.

• In June 2024, Zurich Insurance Group agreed to purchase AIG’s global personal travel insurance and assistance business, including Travel Guard, for USD 600 million. The deal, expected to close by the end of 2024, will integrate Travel Guard into Zurich's Cover-More Group, creating a travel insurance powerhouse with approximately USD 2 billion in annual gross written premiums. This move significantly strengthens Zurich’s position in the personal travel insurance market.

• In April 2024, Chubb Insurance collaborated with M1 Ltd. to provide coverage for travel related incidents such as accidents and delays directly through the M1 platform. It aims to provide a seamless experience for M1 customers that makes easier to manage travel insurance needs while traveling abroad.

• In January 2024, Allianz launched the allyz mobile app that provides travelers with travel advice, document storage, and access to local services. It offers six months of free security services with the purchase of a travel insurance policy and aims to enhance customer experience by integrating insurance and travel services.

Key Benefits

• The report provides quantitative analysis and estimations of the industry from 2025 to 2030, which assists in identifying the prevailing trip cancellation coverage travel insurance market opportunities.

• The study comprises a deep-dive analysis of the current and future trip cancellation coverage travel insurance market trends to depict prevalent investment pockets in the sector.

• 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 trip cancellation coverage travel insurance market study.

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

Trip Cancellation Coverage Travel Insurance Market Key Segments

By Trip 

• Domestic Trips

• International Trips

By Coverage 

• Standalone Trip Cancellation Coverage 

• Cancel For Any Reason (CFAR)

• Comprehensive Travel Insurance Plans

By Policy Tenure

• Single-trip

• Annual / multi-trip

By Age

• Millennials

• Generation X

• Baby Boomers

By Duration

• Short-Term 

• Long-Term

By Distribution

• Direct Sales

• Travel Agencies and Tour Operators

• Insurance Brokers

• Banks & Financial Institutions

• Online Platforms

By End-User 

• Corporate Travelers

• Leisure Travelers

• Education Travelers

• Group Travelers

• Family Travelers

• Pilgrim Travelers

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

• Allianz Global Assistance

• Travel Guard

• AXA Assistance USA

• Generali Global Assistance

• Travelex Insurance Services

• Berkshire Hathaway Travel Protection

• Seven Corners

• World Nomads

• International Medical Group, Inc.

• WorldTrips

• Trawick International

• Tin Leg

• Travel Insured International

• Chubb Limited

• Battleface Insurance Services LLC

Report Scope and Segmentation:

Parameters	Details
Market Size in 2025	USD 31.37 Billion
Revenue Forecast in 2030	USD 58.40 Billion
Growth Rate	CAGR of 14.05% from 2025 to 2030
Analysis Period	2024–2030
Base Year Considered	2024
Forecast Period	2025–2030
Market Size Estimation	Billion (USD)
Growth Factors	Corporate travel risk management fuels the market expansion. Higher travel disruption risk boosts the market demand. Climate and extreme weather events drive the market growth.
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.