Travel Insurance Market Size
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 26.37 Billion |
| Market Size (2029) | USD 36.24 Billion |
| CAGR (2024 - 2029) | 6.56 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Travel Insurance Market Analysis
The Travel Insurance Market size in terms of gross written premiums value is expected to grow from USD 26.37 billion in 2024 to USD 36.24 billion by 2029, at a CAGR of 6.56% during the forecast period (2024-2029).
- The travel industry has proliferated due to the increase in budget and luxury accommodations in recent years. With a growing number of people traveling for leisure, the demand for travel insurance is rapidly rising. According to the World Health Organization (WHO), approximately 1.5 billion people travel annually, a number expected to increase in the coming years. Travel insurance helps travelers prepare for unforeseen events that may negatively impact their travel experiences.
- Moreover, after the outbreak of the COVID-19 pandemic, the need for travel insurance rapidly increased. It began covering COVID-19 tests and quarantine costs. Furthermore, the rising demand for tourism is expected to drive the market's growth. Additionally, strict government policies related to travel are anticipated to further fuel the growth of the travel insurance market.
- Advancements in new technologies aim to enhance the travel experience, providing growth opportunities for the market during the forecast period. Deaths resulting from the COVID-19 pandemic have also presented challenges for the market's growth over the forecast period, as several insurance companies were unprepared to cover death under their insurance policies. People in developing and underdeveloped countries are still hesitant to spend money on insurance facilities, hindering the market's growth.
Travel Insurance Market Trends
Europe Dominating the Travel Insurance Market
- Europe has emerged as the largest global travel insurance market, holding a market share of approximately 22.1% of the total market revenue in the current year. It is expected to continue as the largest market, primarily driven by the growing demand for travel and tourism in the European region. The economic growth in the area, combined with the increasing benefits offered by travel insurance companies to frequent travelers, is anticipated to propel the market's growth.
- Mandatory rules and regulations imposed by the European government compel consumers to acquire travel insurance services as a compulsory requirement before obtaining a VISA. Additionally, the rise in tourism and the travel industry has led to various incidents affecting consumers, such as trip cancellations, medical emergencies, and loss of luggage and important documents. These factors further contribute to the increasing need for travel insurance in the region.
Rapid growth in tourism
- The travel and tourism sector has experienced consistent growth over the past ten years, with numerous nations gaining popularity among millennials and emerging as major tourist destinations. This growth is attributed to the increasing prevalence of package holidays, rising disposable income, extensive media coverage of diverse holiday options, and the convenience of online travel reservations.
- Moreover, a significant number of students choose to pursue higher education in other nations, and many universities and colleges offer scholarship opportunities that attract students from around the world. As the tourism business expands, there is a documented increase in incidents such as essential documents going missing, bags being lost, natural calamities occurring, and health problems arising.
- These factors contribute to the rising importance of travel insurance, making it a major driving force for the growth of the travel insurance market.
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, HTH, and AIG.
Travel Insurance Market Leaders
Travelex
Allianz
InsureMy Trip
HTH
AIG
*Disclaimer: Major Players sorted in no particular order
Travel Insurance Market News
- February 2023: Vistara formed a partnership with Allianz Partners to offer optional travel insurance to its passengers. Customers can now opt for travel insurance during the booking process for both domestic and international flights.
- January 2022: Allianz Partners collaborated with Singapore Airlines, a global insurance products and services provider. This partnership aims to enhance Allianz's position in the rapidly growing Asia-Pacific market, with Singapore Airlines playing a pivotal role in this strategic alliance.
Travel Insurance Market Report - Table of Contents
1. INTRODUCTION
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
4.2.1 Affordability of Premiums Drives the Market
4.3 Market Restraints
4.3.1 Potentially Unable to Cover Pre-Existing Diseases
4.4 Market Opportunities
4.4.1 Technological Advancements in Travel Insurance
4.5 Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Insights into Technological Advancements in the Industry
4.7 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
5.2.3 Banks
5.2.4 Insurance Brokers
5.2.5 Other Distribution Channels
5.3 By End-User
5.3.1 Senior Citizens
5.3.2 Education Travelers
5.3.3 Family Travelers
5.3.4 Other End-Users
5.4 By Geography
5.4.1 North America
5.4.2 Europe
5.4.3 Latin America
5.4.4 Asia-Pacific
5.4.5 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Travelex
6.2.2 Allianz
6.2.3 InsureMy Trip
6.2.4 AIG
6.2.5 HTH
6.2.6 Axa
6.2.7 Seven Corners Inc
6.2.8 Travel Safe Insurance
6.2.9 Trip Mate
6.2.10 Nationwide
6.2.11 Travel Guard*
- *List Not Exhaustive
7. MARKET FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Travel Insurance Industry Segmentation
Travel insurance is a type of insurance covering financial losses associated with traveling, and it can be useful protection for domestic or international travel. Travel insurance helps cover financial losses associated with surprise circumstances that could ruin a trip, including illness, injury, accidents, flight or other transportation delays, and other issues.
The travel insurance market is segmented by type into single-trip travel insurance, annual multi-trip travel insurance, by distribution channel into insurance companies, insurance intermediaries, banks, insurance brokers, and other distribution channels, by end-user into senior citizens, education travelers, business travelers, family travelers, other end-users, by geography North America, South America, Asia-Pacific, Europe, and Middle-East and Africa.
The report offers the market sizes and forecasts in value (USD) for the above segments.
| By Type | |
| Single-Trip Travel Insurance | |
| Annual Multi-Trip Travel Insurance |
| By Distribution Channel | |
| Insurance Companies | |
| Insurance Intermediaries | |
| Banks | |
| Insurance Brokers | |
| Other Distribution Channels |
| By End-User | |
| Senior Citizens | |
| Education Travelers | |
| Family Travelers | |
| Other End-Users |
| By Geography | |
| North America | |
| Europe | |
| Latin America | |
| Asia-Pacific | |
| Middle-East and Africa |
Travel Insurance Market Research FAQs
How big is the Travel Insurance Market?
The Travel Insurance Market size is expected to reach USD 26.37 billion in 2024 and grow at a CAGR of 6.56% to reach USD 36.24 billion by 2029.
What is the current Travel Insurance Market size?
In 2024, the Travel Insurance Market size is expected to reach USD 26.37 billion.
Who are the key players in Travel Insurance Market?
Travelex, Allianz, InsureMy Trip, HTH and AIG are the major companies operating in the Travel Insurance Market.
What years does this Travel Insurance Market cover, and what was the market size in 2023?
In 2023, the Travel Insurance Market size was estimated at USD 24.64 billion. The report covers the Travel Insurance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Travel Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key segments in the Travel Insurance Market?
The key segments in the Travel Insurance Market include by a) Type - Single-Trip Travel Insurance, Annual Multi-Trip Travel Insurance b) Distribution Channel - Insurance companies, Insurance Intermediaries, Banks, Insurance Brokers
Travel Insurance Industry Report
The travel insurance market has experienced significant growth due to the increase in global travel and the potential risks that come with it. This growth is driven by travelers' growing awareness of the importance of insurance to protect against unexpected events such as trip cancellations, medical emergencies, lost baggage, or flight delays. However, the industry is sensitive to global events like natural disasters, political unrest, pandemics, and terrorist attacks, which can disrupt travel and make travelers hesitant to purchase insurance. Despite this, the diversity in travel experiences has led to the development of specialized insurance products tailored to different needs, such as adventure travel insurance, business travel insurance, and coverage for specific regions. This may lead to a trend toward more flexible and customizable policies, allowing travelers to select specific coverage elements based on their travel plans and preferences. Mordor Intelligence™ Industry Reports provide statistics for the Travel Insurance market share, size, and revenue growth rate, including a market forecast outlook and a historical overview. Get a sample of this industry analysis as a free report PDF download.
