Travel Insurance Market Size
|Study Period||2019 - 2028|
|Base Year For Estimation||2022|
|CAGR||> 14.00 %|
|Fastest Growing Market||Latin America|
*Disclaimer: Major Players sorted in no particular order
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Travel Insurance Market Analysis
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.
Travel Insurance Industry Segmentation
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).
|Single-Trip Travel Insurance|
|Annual Multi-Trip Travel Insurance|
|By Distribution Channel|
|By End User|
|Middle-East and Africa|
Travel Insurance Market Trends
This section covers the major market trends shaping the Travel Insurance Market according to our research experts:
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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Expansion of Tourism Industry
In the last decade, the global tourist industry has seen consistent development. Many countries are becoming travel hubs and gaining more popularity among millennials. Increased package holidays, disposable income, broad media coverage of various holiday types, and easy internet travel bookings have expanded the tourism industry. In addition, many students are shifting to other countries for further studies and programs. Additionally, several universities and colleges are also offering scholarship programs, attracting students from around the world. As the tourist industry expands, more cases of crucial documents, lost luggage, natural disasters, and medical issues are reported.
In 2021, the Asia Pacific travel insurance market accounted for about 25% of the revenue share impelled by increasing government investments in tourism projects. The government intends to develop measures for a full-fledged inbound recovery while boosting travel demand, depending on the situation with the coronavirus and the recovery of the travel industry.
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Travel Insurance Industry Overview
The travel insurance market is fragmented, with many international companies. Some tourism-based countries have made travel insurance mandatory for travelers. And this will lead to the organic and long-term growth of the travel insurance industry. Some major players are Travelex, Allianz, InsureMy Trip, Nationwide, HTH, and AIG.
Travel Insurance Market Leaders
*Disclaimer: Major Players sorted in no particular order
Travel Insurance Market News
- February 2022: Vistara has entered into an association with Allianz Partners to provide optional travel insurance to its passengers. Customers can avail of travel insurance while booking their domestic or international flights. The option is currently available to Indian citizens residing in India and will be extended to other global markets, including Singapore, the United Arab Emirates, and Europe, in the second phase over the year.
- January 2022: Allianz Partners joined hands with Singapore Airlines, a global provider of insurance products and services. Through this collaboration, Singapore Airlines would help Allianz to strengthen its standing in the rapidly increasing Asia Pacific market. Additionally, this collaboration aimed to provide appreciative protection products and travel insurance provided globally due to the increasing number of passengers on Singapore Airlines every year.
Travel Insurance Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Insights into Technological Advancements in the Industry
4.6 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Single-Trip Travel Insurance
5.1.2 Annual Multi-Trip Travel Insurance
5.2 By Distribution Channel
5.2.1 Insurance Companies
5.2.2 Insurance Intermediaries
5.2.4 Insurance Brokers
5.3 By End User
5.3.1 Senior Citizens
5.3.2 Education Travelers
5.3.3 Family Travelers
5.4 By Geography
5.4.1 North America
5.4.3 Latin America
5.4.5 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.3 InsureMy Trip
6.2.7 Seven Corners Inc
6.2.8 Travel Safe Insurance
6.2.9 Trip Mate
6.2.11 Travel Guard*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Travel Insurance Market Research FAQs
What is the current Travel Insurance Market size?
The Travel Insurance Market is projected to register a CAGR of greater than 14% during the forecast period (2023-2028).
Who are the key players in Travel Insurance Market?
Travelex, Allianz, InsureMy Trip, Nationwide, HTH and AIG are the major companies operating in the Travel Insurance Market.
Which is the fastest growing region in Travel Insurance Market?
Latin America is estimated to grow at the highest CAGR over the forecast period (2023-2028).
Which region has the biggest share in Travel Insurance Market?
In 2023, the Asia-Pacific accounts for the largest market share in the Travel Insurance Market.
Travel Insurance Industry Report
Statistics for the 2023 Travel Insurance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Travel Insurance analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.