United States Travel Insurance Market Analysis by Mordor Intelligence
The United States travel insurance market is valued at USD 7.71 billion in 2025 and is forecast to reach USD 16.12 billion by 2030, advancing at a 15.9% CAGR. Driven by heightened risk awareness and a resurgence in outbound leisure travel, the US travel insurance market is witnessing a notable uptick. Sales volumes surged by 15% year on year, with coverage extending to over 148 million Americans. Demand is further bolstered by concerns over extreme weather events, the absence of international coverage under Medicare, and corporate duty-of-care policies. Digital distribution channels play a pivotal role, enhancing the accessibility and reach of these insurance products. Yet, the industry grapples with challenges: premium benefits from credit cards, a patchwork of state regulations, and legal disputes stemming from the pandemic. In response, insurers are not only refining policy language but also channeling investments into trust-building service enhancements, ensuring the market's momentum remains unshaken.
Key Report Takeaways
- By insurance cover type, single-trip policies led with 61.3% of United States travel insurance market share in 2024 and annual multi-trip products are projected to grow at 15.34% CAGR through 2030.
- By distribution channel, insurance Companies (Direct) held 33.87% United States travel insurance market share in 2024, on the contrary banks and credit unions show the highest forecast CAGR at 18.0% to 2030.
- By end user, senior citizens captured 30.2% United States travel insurance market share in 2024 and business travellers post the fastest growth outlook at 22.60% CAGR from 2025-2030.
- By coverage type, emergency medical benefits generated 27.2% of 2024 claims, while trip cancellation and interruption combined for over 40% of payouts.
United States Travel Insurance Market Trends and Insights
Driver Impact Analysis
Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Surge in outbound U.S. leisure travel | +4.2% | National; higher in coastal states | Medium term (2-4 years) |
Embedded cover via OTAs & airlines | +3.8% | National; strongest in tech-forward urban centers | Short term (≤ 2 years) |
Extreme weather-related trip disruption | +2.7% | Coastal, hurricane, and wildfire zones | Long term (≥ 4 years) |
Medicare gaps abroad for retirees | +2.3% | National; emphasis on Florida, Arizona, California | Medium term (2-4 years) |
Premium credit-card "top-up" awareness expanding voluntary uptake | +1.6% | National, with concentration in high-income urban areas | Short term (≤ 2 years) |
Affluent Baby-Boomer retirements boosting senior travel frequency | + 1.1% | National, with higher impact in retirement destinations | Medium term (2-4 years) |
Source: Mordor Intelligence
Surge in Outbound U.S. Leisure Travel
Outbound leisure travel from the U.S. has rebounded, surpassing pre-pandemic levels. Notably, 50% of these travelers are now opting for travel insurance, a significant rise from just 20% in 2020. Furthermore, 15% of travelers are insuring every trip. Financial-loss protection stands out as the primary reason for this coverage, highlighted by 41% of buyers. Younger generations are at the forefront of this trend: 60% of Gen Z and 54% of Millennials are purchasing travel insurance. In contrast, only 45% of Gen X and 43% of Boomers are doing the same, underscoring a generational shift that could reshape long-term demand. Moreover, airlines, cruise lines, and tour operators are witnessing a notable uptick in insurance attachment rates, especially when coverage is bundled during the booking process, bolstering the market's growth trajectory.
Embedded Cover via OTAs & Airlines
The seamless integration of travel insurance into the booking process especially via online travel agencies (OTAs) and airlines has made it notably easier for occasional travelers to opt for coverage. Consequently, 45% of consumers now favor buying insurance directly from their travel providers, moving away from the limited benefits of credit card offerings. Real-time, personalized pricing through API-driven platforms has heightened relevance and boosted conversion rates. In a significant move, PassportCard acquired Pattern in May 2025, propelling the global adoption of embedded insurance solutions among OTAs. As more airlines roll out integrated coverage, insurers are not just increasing customer uptake but are also aiding carriers in turning insurance into a lucrative ancillary revenue stream, further propelling the growth of the U.S. travel insurance market.
Extreme Weather Driving Demand
60% of travelers experienced trip disruption in the past year, and 44% blamed weather. Women (61%) and Boomers (66%) display the highest caution, pushing uptake of cancellation and delay benefits. Claims data mirror the trend: weather-linked delay claims climbed 15% in 2024, with average payouts rising to USD 370. With the 2025–2026 hurricane season forecast as severe, insurers emphasize early-purchase rules and parametric triggers for rapid settlement.
Medicare Gaps Abroad Push Retirees Toward Specialized Coverage
Medicare covers virtually no medical bills outside the US, and Medigap’s foreign emergency benefit caps at USD 50,000 lifetime. The liability gap steers retirees toward bespoke medical plans with higher limits and pre-existing-condition waivers. Senior citizens already account for 30% of written premium, and global senior travel medical sales are forecast at USD 16.7 billion by 2032. Tailored products strengthen customer loyalty and lift the long-term ceiling of the US travel insurance market.
Restraints Impact Analysis
Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Credit-card benefit perception | -1.8% | Affluent urban markets | Medium term (2-4 years) |
Fragmented state insurance regulation | -1.2% | National; varies by state | Long term (≥ 4 years) |
Price-sensitive > 70-year travelers | -0.9% | Retirement-heavy states | Medium term (2-4 years) |
COVID-19 claim litigation | -0.7% | National | Short term (≤ 2 years) |
Source: Mordor Intelligence
Credit-Card Benefits Suppressing Standalone Sales
Premium cards such as Chase Sapphire Reserve include trip-cancellation limits up to USD 10,000 and delay reimbursement of USD 500, fostering a “free coverage” mindset. Yet exclusions for pre-existing conditions, medical costs, and extended trip lengths dilute actual protection. Insurers counter by marketing “top-up” products that fill card gaps and by highlighting claims-service advantages over bank administrators. Consumer education is repositioning credit-card coverage as a baseline rather than a substitute, slowly easing the drag on the US travel insurance market.
COVID-19 Litigation Eroding Trust
Pandemic claim denials spawned lawsuits and eroded confidence, prompting buyers to scrutinize contract language. Research links higher policy literacy to stronger purchase intent, pushing carriers to simplify wording and publish plain-English summaries. The share of Cancel For Any Reason (CFAR) sales more than doubled to 11.57% by February 2025. underscoring consumer demand for broad, transparent protection.
Segment Analysis
By Insurance Cover Type: Single-Trip Dominance Faces Multi-Trip Challenge
Single-trip protection held 61.1% US travel insurance market share in 2024 as occasional vacationers favored one-off policies for budget clarity. Purchases spiked during the “revenge-travel” wave, reinforcing the segment’s prominence. However, annual plans are expanding at a 15.30% CAGR, above the overall US travel insurance market. Demand originates from frequent flyers, digital nomads, and families seeking administrative ease over multiple journeys. Providers tempt customers with unlimited-trip scopes, concierge services, and bundled medical telehealth, eroding the legacy cost gap. Some carriers tier annual packages to align premiums with trip frequency, broadening appeal while defending profitability.
Travel patterns signal continued convergence. Corporate road-warriors, now pairing business and leisure stays, discover that annual coverage reimburses both trip types. Remote work visas fuel longer overseas stints, nudging travelers toward plans that accommodate extended calendar spans without repeat paperwork. The eventual equilibrium may see single-trip policies remain the entry point while annual products capture loyalty among upwardly mobile demographics, reshaping both retention economics and the US travel insurance market size at segment level.
Note: Segment shares of all individual segments available upon report purchase
By Benefit Type: Medical Expenses Drive Core Demand
Emergency treatment claims accounted for 27% of 2024 submissions, with average payouts at USD 1,654. The figure underscores travelers’ primary fear: unexpected healthcare bills abroad. Among retirees, awareness of Medicare’s overseas void further concentrates interest in high-limit medical benefits. Trip cancellation and interruption coverages follow closely, representing more than 40% of aggregate claims as travelers hedge prepaid, non-refundable costs. In both categories, simple wording and instant-claim apps differentiate carriers in the competitive field.
Technology catalyzes new sub-features. Parametric flight-delay add-ons trigger automatic wallet credits when airline data confirm Schedule-B breaches, shrinking claims cycles to minutes. Cybersecurity riders protect personal data and devices, reflecting the modern traveler’s reliance on connected gadgets. Innovation within core benefit types expands perceived value and elevates policy penetration, extending the US travel insurance market size across broadening demand curves.
By Distribution Channel: Digital Transformation Reshapes Sales
Insurers’ proprietary web and mobile portals retained 33.97% US travel insurance market share in 2024, leveraging brand recall and 24/7 service to attract direct buyers. AI chatbots guide quote journeys, while e-wallet claim disbursements cut friction. Yet banks and credit unions post the fastest growth at 18.0% CAGR to 2030, bundling policies with premium checking or wealth-management products. Consumer trust in financial institutions offsets inertia that previously stalled first-time purchases.
Embedded sales through airlines, OTAs, and cruise lines accelerate conversion via context-aware offers. A traveler selecting a Caribbean flight in September sees hurricane add-on prompts; another booking a ski package receives mountain rescue coverage suggestions. Aggregators such as TravelInsurance.com boost transparency by displaying side-by-side prices and verified reviews, steering value-seeking segments to niche underwriters. Seamless APIs, open-banking connections, and white-label dashboards together widen reach and propel the US travel insurance market.

Note: Segment shares of all individual segments available upon report purchase
By End User Type: Senior Citizens Lead While Business Travelers Surge
Seniors secured 30% US travel insurance market share in 2024, far exceeding their proportion among outbound passengers because of elevated medical risk and coverage gaps. Affluent Boomers view travel as a core retirement pursuit; insurers court them with higher cancellation limits, stability waivers, and a 24-hour medical concierge. Global health crises highlighted the importance of evacuation coverage, nudging older travelers toward premium tiers that raise average policy value.
Business travelers outpace every other cohort with a 22.60% CAGR outlook. Corporations reinstate face-to-face meetings, but duty-of-care protocols now mandate insurance, including mental-health teleconsults and crisis-response features. Hybrid “bleisure” itineraries lengthen stay durations, increasing exposure days and policy spend. Students, adventure tourists, and family groups remain substantive niches; each pushes insurers to refine activity riders, group discounts, or semester-length medical plans. Heterogeneous needs enlarge the total US travel insurance industry while preserving room for specialization.
Geography Analysis
Regional uptake tracks a mosaic of travel habits, demographic profiles, and climate exposure. Coastal states such as New York, California, and Florida generate the highest outbound volumes and thus anchor premium flows. Retirement hubs—Florida tops the list, followed by Arizona and California—show elevated penetration because resident seniors lack overseas Medicare protection and take longer, multi-season journeys. The US travel insurance market size for Florida alone is forecast to top USD 1 billion by 2030, expanding at a pace as inbound retirees.
Climate risk sharpens geographic disparities. Hurricane-prone Gulf and Atlantic coasts, alongside wildfire-vulnerable Western states, record the strongest growth in cancellation and delay policy adoption. Fifty-six percent of Americans now rethink visits to weather-exposed locales, seven points above 2019 levels. When storms intensify, booking engines report double-digit jumps in insurance attachment rates for affected routes within 24 hours of National Weather Service alerts. Insurers respond with dynamic pricing that embeds NOAA feeds, but rising claim costs may elevate premiums in highest-risk ZIP codes.
Regulation compounds geographic nuance. Thirty-six states adopted the NAIC Travel Insurance Model Law by May 2024, advancing toward harmonization, yet filing processes, fee schedules, and producer-licensing rules still vary. Larger underwriters absorb compliance overhead; smaller firms restrict product rollouts, creating uneven consumer choice. Continued alignment would reduce friction and, by unlocking multistate scale, enlarge the US travel insurance market.
Competitive Landscape
Market structure remains moderately concentrated: the five leading brands accounted for close to 40% of the 2024 written premium. Allianz Partners, AIG Travel Guard, Berkshire Hathaway Travel Protection, Generali Global Assistance, and Seven Corners Inc. rely on balance-sheet strength, extensive broker networks, and recognizable branding. Their combined heft earns preferred placement in airline and OTA checkouts, reinforcing visibility across the US travel insurance market.
Digital-first entrants attack pain points. WorldTrips pushes instant quote journeys under 60 seconds. Squaremouth’s metasearch garners 130,000 verified reviews, steering price-sensitive shoppers to best-fit products. Insurtechs deploy AI to triage underwriting and accelerate claims: 76% of US insurance executives report live generative-AI initiatives by late 2024. Parametric triggers and blockchain smart contracts further shrink settlement times, key for flight-delay or baggage-loss micro-claims.
Strategic alliances reshape channel control. PassportCard’s Pattern purchase arms the carrier with embedded APIs that slot natively into booking sites. Allegiant Travel Company noted a 26.2% rise in third-party revenue after adding insurance to its ancillary bundle. Banks such as JPMorgan embed trip-protection top-ups into wealth-client dashboards, while health-insurer Cigna partners with AXA Assistance to bolt travel medical onto corporate expatriate plans. M&A activity is poised to continue as incumbents source tech capabilities and distribution scale.
United States Travel Insurance Industry Leaders
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Allianz Partners
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American International Group Inc.
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Berkshire Hathaway Travel Protection
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Generali Global Assistance
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Seven Corners Inc.
- *Disclaimer: Major Players sorted in no particular order

Recent Industry Developments
- May 2025: PassportCard acquired Pattern Insurance Services, boosting embedded distribution firepower
- April 2025: Integrated Specialty Coverages bought TravelInsurance.com to expand direct-to-consumer reach
- March 2025: Allianz Partners rolled out its 2025 travel-trends initiative and enhanced AllTrips annual plan
- November 2024: Allegiant Travel Company recorded a 26.2% gain in third-party product revenue after introducing travel insurance
United States Travel Insurance Market Report Scope
The report focuses on the complete background of the US Travel Insurance Market, which comprises an assessment of the developing market trends by segments, important changes in the market dynamics, and a market overview. The US Travel Insurance Market is Segmented By Insurance Coverage (Single-Trip Travel Insurance and Annual Multi-trip Travel Insurance), By Distribution channels (Insurance Intermediaries, Insurance Companies, Banks, Insurance Brokers, and Others) and By End-User (Senior Citizens, Business Travelers, Family Travelers, and Others (Education Travelers, etc)). The report offers market size and forecasts for the United States Travel Insurance Market in value (USD Billion) for all the above segments.
By Insurance Cover Type | Single-Trip Travel Insurance |
Annual Multi-Trip Travel Insurance | |
Long-Stay / Extended-Stay Travel Insurance | |
By Coverage (Benefit) Type | Medical & Emergency Care Expense |
Trip Cancellation & Interruption | |
Baggage & Personal Effects Loss | |
Flight / Travel Delay | |
Other Add-On Coverage (Adventure Sports, Rental Car, etc.) | |
By Distribution Channel | Insurance Companies (Direct) |
Insurance Intermediaries & Agents | |
Banks & Credit Unions | |
Online Aggregators & Comparison Portals | |
Travel Agencies & OTAs | |
Airlines & Cruise Lines (Embedded) | |
By End User Type | Senior Citizens (65+) |
Family Travelers | |
Business Travelers | |
Student / Educational Travelers | |
Solo Backpackers & Adventure Travelers | |
By Geography | Northeast |
Midwest | |
South | |
West |
Single-Trip Travel Insurance |
Annual Multi-Trip Travel Insurance |
Long-Stay / Extended-Stay Travel Insurance |
Medical & Emergency Care Expense |
Trip Cancellation & Interruption |
Baggage & Personal Effects Loss |
Flight / Travel Delay |
Other Add-On Coverage (Adventure Sports, Rental Car, etc.) |
Insurance Companies (Direct) |
Insurance Intermediaries & Agents |
Banks & Credit Unions |
Online Aggregators & Comparison Portals |
Travel Agencies & OTAs |
Airlines & Cruise Lines (Embedded) |
Senior Citizens (65+) |
Family Travelers |
Business Travelers |
Student / Educational Travelers |
Solo Backpackers & Adventure Travelers |
Northeast |
Midwest |
South |
West |
Key Questions Answered in the Report
How big is the United States travel insurance market in 2025?
The United States travel insurance market is worth USD 7.72 billion in 2025 and is projected to reach USD 16.12 billion by 2030.
Which coverage types generate the highest claim payouts?
Trip cancellation and interruption combine for over 40% of 2024 claim payouts, while emergency medical benefits account for 27% of claims at an average USD 1,654 per incident.
Why are seniors such a large share of policyholders?
Medicare covers almost no overseas medical costs, so seniors buy supplemental travel medical plans, pushing their segment to 30% of 2024 premium volume.
How is embedded insurance changing the market?
Airlines and OTAs integrate policies into booking paths, removing purchase friction; 45% of travelers now prefer obtaining coverage from their travel provider at checkout.