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Revenue for the Travel Insurance market in United States declined an estimated 71.5% in 2020 due to a sharp decrease in travel activity amid the COVID-19 pandemic. In 2021, younger consumers are generating a higher share of revenue for the industry than normal as older consumers are more reluctant to travel amid the pandemic. The pandemic has led individuals who are traveling to take out travel insurance policies more frequently than before the pandemic, highlighting a potential opportunity for the market moving forward.
The United States residents travelling to international destinations for business or leisure purposes are the primary source of demand for travel insurance. Advancements in aircraft technology have made air travel safer and less costly, prompting more US residents to take leisure trips abroad and purchase travel insurance to protect their travel investment. In addition, the increased globalization of markets and corporate supply chains have driven the need for business travel. The number of international trips by US residents is expected to increase during forecast period, representing a potential opportunity for the industry.
The travel insurance industry exhibits a low level of market share concentration. The top four industry operators are expected to account for less than one-fifth of total industry revenue. The industry's fragmentation is attributable to its numerous distribution channels and niche, localized operators. Suppliers to the industry include data management firms and institutional investment managers with the total number of industry suppliers ranging in the low thousands. The leading provider of travel insurance is American International Group Inc. (AIG) through its Travel Guard Brand.
Travel insurance in United States is regulated at the state level, and insurers are incentivized to attain accreditation from the National Association of Insurance Commissioners. Travel insurance companies are required to adhere to the regulations of the jurisdiction they sell travel insurance, thus causing moderate-to-high regulatory compliance costs.
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 US 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).
|Single-Trip Travel Insurance|
|Annual Multi-Trip Travel Insurance|
|By Distribution Channel|
Key Market Trends
Americans Spending on Travel Insurance is Driving the Market
In 2020, Americans spent approximately USD 1.72 billion on all types of travel protection. According to industry estimates, more than 45% of the American population is currently more concerned while travelling than they were in the past, owing to the spread of epidemic disease, rise in terrorist attacks, and severe weather conditions. Travel insurance policies are widely opted for by frequent travellers, well-educated groups, and individuals with high disposable income. Moreover, the number of overseas travellers, who opt for travel insurance is large in number as compared to domestic travellers. This growth is largely subject to a rise in multigenerational family travel, which supplements the growth of the US travel insurance market. Moreover, these travellers opt to travel for long weekend trips and try to secure their travel from various concerns related to theft and health hazards.
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Single Trip Insurance Cover Dominates the Market
Single trip travel insurance accounts for a relatively large market share in the United States due to the growth in business travel and the rise in disposable income, which creates the need for safe travelling. However, more affordable and cheaper travel has made it easy for a number of family travellers, and fully independent travellers to take up several trips in a year, thus creating a substantial growing path for annual multi-trip travel insurance.
The companies holding the largest market share in the Travel Insurance industry include Allianz Partners Sas and American International Group, Inc.
- April 2022 - USI Affinity today announced the launch of a new travel protection plan, Road Trip Insure, offered through its Travel Insurance Services division. The new Road Trip Insure plan contains travel insurance that is underwritten by United States Fire Insurance Company, part of the Crum & Forster group of companies and is custom-tailored to meet the growing needs of U.S. residents travelling domestically or internationally by vehicle, including recreational vehicles.
- April 2021 - Travelex Insurance Services, a travel protection industry leader, introduced Travel On, a new travel app designed to enhance customers’ demand for increased safety and peace of mind.
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 Porters Five Force 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
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Seven Corners Inc.
6.2.2 Travel Safe Insurance
6.2.3 American International Group Inc.
6.2.4 Allianz Partners Sas
6.2.5 USI Insurance Services, LLC
6.2.6 MH Ross Travel Insurance Services, Inc.
6.2.7 Travel Insured International
6.2.8 Travelex Insurance Services Inc.
6.2.9 Berkshire Hathaway Travel Protection
6.2.10 American Express Company*
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
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Frequently Asked Questions
What is the study period of this market?
The US Travel Insurance Market market is studied from 2018 - 2027.
What is the growth rate of US Travel Insurance Market?
The US Travel Insurance Market is growing at a CAGR of >6% over the next 5 years.
Who are the key players in US Travel Insurance Market?
Travel Safe Insurance, Seven Corners Inc.., Allianz Partners Sas, American International Group Inc. , USI Insurance Services, LLC are the major companies operating in US Travel Insurance Market.