Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 25.98 Billion |
| Market Size (2030) | USD 50.77 Billion |
| Growth Rate (2025 - 2030) | 14.34% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Europe |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Travel Insurance Market Analysis by Mordor Intelligence
The travel insurance market size stands at USD 25.98 billion in 2025 and is forecast to reach USD 50.77 billion by 2030, supported by a 14.34% compound annual growth rate (CAGR). Increasing trip frequency, mandatory visa coverage rules, and product innovation have turned insurance from an optional add-on into a routine part of trip planning. Digital distribution improves price transparency, helping travellers compare policies in real time and accelerating overall penetration. The share of travellers purchasing cover rose to 76.0% in 2025, up from 24.0% in 2024, reflecting higher risk awareness and simpler onboarding processes. Europe maintains its leadership position, while Asia-Pacific is scaling fastest with strong outbound traffic and mobile-first buying behaviour. Product lines built around parametric triggers and modular benefits are reshaping margins and claims handling time, giving experienced underwriters scope to consolidate with technology firms and smaller carriers.
Key Report Takeaways
- By insurance cover type, single-trip plans accounted for 46.1% of the travel insurance market share in 2024, whereas long-stay policies are projected to expand at an 18.02% CAGR to 2030.
- By distribution channel, insurance intermediaries led with a 48.3% share of the travel insurance market in 2024, while online aggregators and comparison portals posted the fastest growth at a 19.10% CAGR through 2030.
- By end-user, family travelers captured 32.2% of market revenue by end-user of the travel insurance market in 2024; business travelers are forecast to advance at a 20.24% CAGR to 2030.
- By geography, Europe held 39.3% of global revenue of the travel insurance market in 2024, whereas APAC is set to grow at a 17.26% CAGR over 2025-2030.
Global Travel Insurance Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Rising global tourism and increased travel frequency | +3.6% | Global with a stronger effect in APAC | Medium term (2-4 years) |
| Post-pandemic boom in experiential tourism across APAC | +3.1% | APAC with spillover to Europe and North America | Short term (≤ 2 years) |
| Mandatory insurance requirements for visas and entry | +2.6% | Europe, Middle East, APAC | Long term (≥ 4 years) |
| Technological advancements and digital distribution | +2.1% | North America, Europe, developed APAC | Medium term (2-4 years) |
| Parametric flight-delay products scaling in North America | +1.4% | North America with expansion to Europe | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Rising Global Tourism and Increased Travel Frequency
According to survey by American Express, travel intentions remain elevated, with 74.0%[1]American Express, “2025 Global Travel Trends Report,” americanexpress.comof respondents planning up to three domestic trips and 59.0% planning up to three international trips in 2025 globally. Younger segments value financial protection over price, triggering broader take-up for baggage, medical, and rental-car add-ons. Modular policy architecture lets carriers upsell activity-specific riders such as sports and events, which fit well for short booking windows. Higher trip counts have also lifted annual multi-trip products, giving insurers stable premium inflows across the calendar year.
Post-Pandemic Boom in Experiential Tourism Across Asia-Pacific
Asia-Pacific captured 36.6% of worldwide travel bookings in 2025, overtaking Europe’s 31.8% share. Longer average itineraries of 17-18 days call for extended medical and trip-interruption cover. Eighty-four percent of millennials in the region now include adventure sports riders, pushing premiums per policy higher. Mobile-based quote-to-bind flows dominate in China, India, and Southeast Asia, where smartphone access exceeds traditional insurance touchpoints and helps expand the travel insurance market.
Mandatory Insurance Requirements for Visas and Entry
A steadily rising list of destinations demands evidence of medical coverage, led by the Schengen zone’s minimum EUR 30,000 limit[2]AXA Schengen, “Schengen Visa Health Insurance Requirements Explained,” axa-schengen.com. New entrants such as Qatar and Saudi Arabia impose similar thresholds, while several Asian states require COVID-specific benefits. Standardised minimum sums shape customer expectations and create a baseline for product design, effectively institutionalising insurance alongside passports and visas. Carriers that can certify policies instantly in visa portals gain a distribution edge.
Technological Advancements and Digital Distribution
The online insurance segment is growing at a 12.20% CAGR through 2030. Embedded offers inside booking engines streamline comparison and reduce acquisition cost per policy. Cloud-based core systems use data analytics to refine underwriting and pricing, while mobile apps support real-time policy management. AXA Partners US launched My Trip Companion in 2025, integrating medical support and safety alerts inside a Progressive Web App. Such utilities lift engagement and create incremental revenue via cross-selling.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Rising fraudulent claims pressuring APAC loss ratios | −1.7% | Asia-Pacific with spillover globally | Medium term (2-4 years) |
| Lack of consumer understanding and perceived value | −1.1% | Global with stronger effect in emerging markets | Short term (≤ 2 years) |
| High cost of comprehensive travel insurance and price sensitivity | −1.4% | Global especially price-sensitive markets | Medium term (2-4 years) |
| Data-privacy rules hindering cross-border underwriting | −1.1% | Europe and Asia-Pacifc, global impact | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Rising Fraudulent Claims Pressuring APAC Loss Ratios
AI-enabled document forgery raised suspected fraud cases by 55.0% in Asia-Pacific during 2024. Investigation cycles now run 68 days for contested files compared with three weeks for standard claims, pushing operating costs and hurting customer satisfaction. Forty percent of carriers in the region have adopted AI-driven detection engines, twice the rate in the Americas. Technology investment is essential, but stretches combined ratios until savings materialise.
Lack of Consumer Understanding & Perceived Value
Policy wording complexity and exclusions create dissatisfaction when claims fall outside the scope. Aon Affinity found that 50.0% of Americans have purchased a policy, yet variations in motive—cancellation, medical, or baggage signal unresolved knowledge gaps. Providers that streamline language and add visual summaries improve conversion and retention metrics, especially among infrequent travellers accustomed to short digital attention spans.
Segment Analysis
By Insurance Cover Type: Extended-Stay Policies Reshape Market Dynamics
Long-Stay products are rewriting the economics of the travel insurance market. The single-trip product line retained a 46.1% share in 2024, reflecting its simplicity and low entry price for occasional holidaymakers. In value terms, the segment generated the largest portion of the travel insurance market size at USD 11,960.0 million. Extended-Stay cover is set to post an 18.02% CAGR between 2025 and 2030, growing from a smaller base to address the needs of digital nomads and business expatriates who spend months abroad. LV= now insures journeys up to 366 days for travellers under 65. Higher trip lengths and broader medical benefits push premiums per policy up, improving average revenue per user for insurers.
Annual-Multi-Trip plans charge an average of USD 308 per policy and become economical after four trips a year[3]Squaremouth, “Spring Travel Trends: Adventure Seekers Drive Major Growth in 2025,” squaremouth.com. Although their share is below single-trip, repeat travellers like consultants and crew members drive steady uptake. Niche add-ons such as adventure sports saw an 18.0% year-over-year sales increase in 2025, mirroring the broader interest in experience-based travel. Cancel-for-Any-Reason riders reimburse 50-75% of prepaid costs and extend financial protection outside standard triggers, widening product relevance. Overall, differentiated benefit design is helping insurers protect pricing while defending their share in a competitive travel insurance market.
Note: Segment shares of all individual segments are available upon report purchase
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By Distribution Channel: Digital Platforms Challenge Traditional Intermediaries
Insurance intermediaries captured 48.3% of gross written premiums in 2024 by offering bespoke advice on complex medical and multi-destination policies. Face-to-face agents remain influential for older customers and corporate procurement teams, making this channel central to higher-value placements. Nonetheless, online aggregators are trending up with a 19.10% CAGR forecast to 2030. Transparent side-by-side comparisons and instant policy issuance align well with the expectations of digital-native buyers and are steadily chipping away at intermediary volume.
Direct-to-consumer websites and mobile apps from leading insurers are leveraging behavioural data to cross-sell ancillary covers inside the booking path, while bancassurance plays on embedded finance relationships for quick conversion at checkout. The emerging “Others” cluster, which bundles airlines, travel super-apps, and digital wallets, benefits from captive audience access and can present contextual offers without extra clicks. As a result, channel mix is fragmenting, forcing insurers to maintain omnichannel footprints that allow policyholders to toggle between online and advisory touchpoints within the travel insurance market.
By End-User/Traveler Type: Business Segment Leads Post-Pandemic Recovery
Family travelers accounted for 32.2% of revenue in 2024, generating higher average premiums because one policy covers multiple individuals and often bundles child-specific allowances and Covid-related quarantine expenses. Rising discretionary income and a rebound in multi-generational vacations keep demand for tailored family packages buoyant. Business Travelers, whose trips connect to duty-of-care regulations, are forecast to expand at a 20.24% CAGR through 2030, the quickest among all user groups. Employers now request real-time traveller tracking and proactive disruption alerts, creating scope for insurers to bundle risk management tools. Senior Citizens require higher medical limits and evacuation support, driving the premium pool despite lower policy counts. The Student subsegment is improving as universities reopen exchange programs, often mandating health cover. Emerging categories such as Remote Workers and Adventure Seekers post double-digit expansion, influenced by flexible work arrangements and heightened appetite for experiential trips. Custom pricing that matches specialised risks underpins profitability in these niches within the travel insurance industry.
Note: Segment shares of all individual segments are available upon report purchase
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Geography Analysis
Europe retained the largest 39.0% revenue slice of the travel insurance market in 2024. Gross written premium in the region stood 6.3% above 2019 levels, even though travel volume edged up by just 0.6% in the same period. Schengen-linked obligations structurally protect baseline demand. Competitive intensity is climbing as non-top 10 carriers lifted collective share from 35.0% in 2018 to 41% in 2024, shrinking average premium margins but encouraging product innovation such as same-day visa letters and instant claim e-vouchers. GDPR compliance continues to shape data architecture, influencing underwriting models worldwide.
Asia-Pacific represents the most dynamic growth frontier, projected to advance at 17.0% CAGR over 2025-2030. China and India form the dual growth engines, anchored by rising middle-class incomes and considerable pent-up wanderlust. India’s insurance authority pursues “Insurance for all by 2047,” giving domestic carriers regulatory tailwinds to scale digital micro-covers. Japan and South Korea exhibit mature adoption but differentiate through premium service add-ons such as concierge medical transfers. Southeast Asian players deploy super-app ecosystems to sell micro-duration policies, enabling first-time customers to enter the travel insurance market with low ticket sizes.
North America is an innovation hub, spearheading parametric products and app-based self-service. Roughly 50.0% of U.S. adults have bought at least one policy, with the figure climbing to 60.0% among Generation Z. High litigation exposure and medical costs make comprehensive plans more valuable, supporting larger average premiums. Startups partner with established underwriters for capacity, blending rapid product cycles with balance-sheet strength.
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Competitive Landscape
Allianz SE, American International Group, Inc., AXA SA, Zurich Insurance Group Ltd, and Assicurazioni Generali S.p.A. collectively account for 65.0% of global premiums, reflecting moderate concentration levels. Zurich’s USD 600.0 million acquisition of AIG’s travel portfolio in December 2024 signals an acceleration toward scale benefits and integrated technology stacks. Strategic alliances complement outright mergers: Sirius Point partnered with Gigasure in 2024 to embed real-time flight and baggage delay aids into a mobile interface. Such collaborations blend underwriting authority with front-end agility.
Insurtech entrants leverage machine learning for underwriting and claims, positioning themselves as low-cost alternatives capable of sub-minute payouts. Blink Parametric and other specialists supply white label feeds that incumbent carriers integrate to refresh legacy propositions. On the servicing side, Pacific Cross rolled out AI fraud detection across five Asia-Pacific markets in March 2025 to shorten review times and cut losses. Competition is therefore pivoting around digital capability rather than price alone, with instant settlement, contextual advice, and loyalty-based discounts distinguishing leaders in the travel insurance market.
Large brokers and aggregators add another layer to the arena, using behavioural analytics to direct traffic toward preferred underwriters. White-space niches remain around remote worker packages, extreme adventure sports, and gap-year students, where coverage gaps still occur. Flexible policy lengths, modular riders, and micro-deductibles are central to seizing these adjacencies before rivals scale copycat offerings.
Travel Insurance Industry Leaders
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American International Group Inc.
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Assicurazioni Generali SpA
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Zurich Insurance Group Ltd.
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Allianz SE
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AXA S.A.
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- May 2025: Arch RoamRight unveiled its 2025 Travel Insurance Playbook, citing rising demand for personalised cover.
- March 2025: AXA Partners US introduced My Trip Companion, a Progressive Web App portal for policy management and destination advice.
- March 2025: Pacific Cross deployed AI fraud-detection tools in five Asia-Pacific markets.
- December 2024: Zurich completed the USD 600.0 million purchase of AIG’s travel insurance operations.
Research Methodology Framework and Report Scope
Market Definitions and Key Coverage
Our study defines the global travel insurance market as the gross written premiums that individual travelers pay for single-trip, annual multi-trip, or extended-stay policies covering medical expenses, trip cancellation, baggage loss, personal liability, and emergency assistance while journeying domestically or abroad. Products are captured at the point of premium recognition, irrespective of distribution channel or underwriting domicile, thereby mirroring the value pool available to insurers and intermediaries.
Scope exclusion: We deliberately leave out self-funded corporate travel programs, embedded micro-covers offered free of charge by card issuers, and revenue from insurance technology platforms that merely enable policy administration.
Segmentation Overview
- Segmentation by Insurance Cover Type
- Single Trip
- Annual Multi-Trip
- Long-Stay / Extended-Stay
- Specialized Policies
- Flight-Delay Insurance
- Cancel-for-Any-Reason (CFAR)
- Adventure-Sports Coverage
- Segmentation by Distribution Channel
- Insurance Intermediaries
- Insurance Companies (Direct)
- Banks & Bancassurance
- Travel Agents & Tour Operators
- Online Aggregators / Comparison Portals
- Others (Airlines & Online Travel Agencies, Super-Apps & Digital Wallets)
- Segmentation by End-User / Traveller Type
- Family Travellers
- Business Travellers
- Senior Citizens
- Students
- Others (Remote Workers, Backpackers, Group Travellers
- Segmentation by Geography
- North America
- United States
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Peru
- Chile
- Rest of South America
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- BENELUX (Belgium, Netherlands, and Luxembourg)
- NORDICS (Denmark, Finland, Iceland, Norway, and Sweden)
- Rest of Europe
- Middle East And Africa
- United Arab Emirates
- Saudi Arabia
- South Africa
- Nigeria
- Rest of Middle East & Africa
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Australia
- Southeast Asia
- Rest of Asia Pacific
- North America
Detailed Research Methodology and Data Validation
Primary Research
Underwriting heads, travel agency networks, online aggregators, and bancassurance managers across Europe, North America, and Asia-Pacific are interviewed or surveyed to test penetration rates, average premiums, claim frequencies, and channel shifts that secondary sources only hint at. Their feedback guides parameter tweaks and scenario bounds.
Desk Research
We begin with public-domain foundations such as UNWTO international arrival statistics, World Bank outbound tourism spend, USTIA premium audits, Eurostat holiday travel surveys, and regional regulators like EIOPA, IRDAI, and NAIC. Company filings, investor decks, and regulatory solvency statements are mined through Dow Jones Factiva and D&B Hoovers to benchmark premium splits and loss ratios. Trade associations, peer-reviewed journals, and customs data on outbound passenger flows further ground the baseline. This catalog is illustrative; many additional sources inform our evidence stack.
Market-Sizing & Forecasting
A blended top-down model converts outbound trip volumes and domestic overnight journeys into an addressable traveler pool, applies region-specific take-up rates, and multiplies by weighted average premiums. Supplier roll-ups, sampled ASP × policy counts from intermediaries, and airport channel checks act as bottom-up guardrails before totals are finalized. Key drivers include visa mandate expansions, digital booking share, senior citizen traveler growth, healthcare cost inflation, and currency swings; these factors feed a multivariate regression that projects values through 2030. Gaps in granular country data are bridged by nearest-neighbor ratios validated in primary calls.
Data Validation & Update Cycle
Mordor analysts run variance checks against historical claims ratios, reconcile anomalies, and pass models through a two-level peer review. Reports refresh annually; material shocks such as pandemic rules or major M&A trigger interim updates, and a final pre-publication sweep ensures clients receive the latest view.
Why Our Travel Insurance Baseline Commands Reliability
We acknowledge that published market numbers rarely align because firms vary in product scope, geographic roll-ups, currency treatment, and refresh cadence.
Key gap drivers include whether ancillary covers like rental-car excess are counted, how aggressively future penetration ramps are assumed, and whether exchange rates are frozen or blended. Mordor Intelligence keeps scope tight to traveler-paid premiums, applies consensus FX rates, and refreshes inputs every twelve months, whereas other studies often meld platform revenue, use static 2023 conversions, or project linear adoption.
Benchmark comparison
| Market Size | Anonymized source | Primary gap driver |
|---|---|---|
| USD 25.98 B (2025) | Mordor Intelligence | - |
| USD 27.55 B (2024) | Global Consultancy A | Includes complimentary card-linked covers; single FX base year |
| USD 27.05 B (2024) | Industry Association B | Counts platform service fees alongside premiums |
| USD 23.51 B (2024) | Regional Consultancy C | Excludes domestic travel policies in Asia-Pacific |
Taken together, the comparison shows that our disciplined scope selection and yearly refresh yield a balanced, transparent baseline that decision-makers can reproduce and stress-test with limited inputs.
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Key Questions Answered in the Report
What is the current size of the travel insurance market?
The travel insurance market size is USD 25.98 billion in 2025 and is forecast to double to USD 50.77 billion by 2030.
Which region leads the travel insurance market in 2025?
Europe holds 39.0% of global revenue, supported by mandatory Schengen visa rules and a mature insurance ecosystem.
Why are parametric policies gaining attention?
Parametric policies pay predefined sums when objective triggers such as flight delays occur, enabling near-instant payouts and eliminating lengthy claims reviews.
Which end-user group is expanding fastest?
Business Travelers are projected to grow at a 20.00% CAGR through 2030 as corporate trips rebound and duty-of-care requirements intensify.
How will technology shape travel insurance distribution?
Embedded offers within booking engines, AI-driven underwriting, and mobile service portals are expected to raise digital distribution’s share while cutting acquisition costs.
What factors restrain travel insurance adoption?
High premiums for comprehensive plans, limited consumer understanding of policy terms, and complex data-privacy rules can slow penetration, especially in price-sensitive markets.
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