Travel Insurance Market- Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The global travel insurance market reached a USD 13.9 billion value in 2021. Travel insurance provides financial protection for expenses or losses incurred due to unexpected events while domestic or overseas travel. It covers the costs of lost or stolen belongings, emergency medical care, accidental death, and trip cancellation and interruption. It takes effect from the day of travel until the insured returns home. Nowadays, several companies provide travel insurance with 24/7 emergency services, such as replacing lost passports, cash wire assistance, and re-booking canceled flights. They are also offering customization options depending on the insured individuals' geographical location and requirements.

The COVID-19 pandemic brought the world to a halt, with unforeseeable and unexpected implications affecting global economies, people's lives, communities, and livelihoods too, and the risk of layoffs and global recession was at an all-time high. The travel and tourist industry has also endured severe economic slowdowns due to harsh travel restrictions and quarantine regulations worldwide. As per a report published by the World Tourism Organization (UNWTO) in January 2021, international visitors in 2020 fell dramatically from the previous year of 2019. The worldwide travel insurance market was affected by such causes. The market gained traction in 2021 after the gradual relaxation of the lockdowns imposed.

Scope of the Report

The report offers a complete background analysis of the Travel Insurance Market, which includes an assessment of the emerging market trends by segments, significant changes in the market dynamics, and the market overview. The Travel Insurance Market is segmented by Type (Single-Trip Travel Insurance, Annual Multi-Trip Travel Insurance), by Distribution Channel (Insurance companies, Insurance Intermediaries, Banks, Insurance Brokers, Others), by End User (Senior Citizens, Education Travelers, Business Travelers, Family Travelers, Others), by Geography (North America, South America, Asia-Pacific, Europe, Middle-East and Africa).

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Key Market Trends

Increasing Demand for Travel Insurance

Travel companies and industry experts always advise travelers to purchase travel insurance, but less cautious travelers historically ignore this advice. Over the last two years, the pandemic’s tumultuous journey has made the travel industry unpredictable. The cancellation and abandonment of trips are now commonplace, while a need for medical assistance is now a genuine possibility. There is now a general acceptance from travelers that when they book their holiday, there is a certain probability that they could experience these issues and will need to make a claim.

Consumer sentiment also suggests that travel insurance is a ‘must-have purchase in today’s marketplace. With many travelers stung by the pandemic’s impact on previous holiday plans, travel insurance can alleviate the stress of such issues and ensure tourists are not left out of pocket due to unforeseen circumstances. The continuance of the pandemic will ensure that claims for medical expenses, quarantine, and cancellations will be required for many tourists.

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