US Travel Insurance Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The United States Travel Insurance Market is Segmented by Cover Type (Single-Trip, Annual Multi-Trip, Long/Extended Stay), Benefit (Medical, Trip Cancellation, Baggage and More), Distribution Channel (Direct, Insurance Intermediaries, Banks, Online Aggregators, Travel Agencies, Airlines and Cruise Lines), End Users (Senior Citizens, Family Travellers, and More), and Region. The Market Forecasts are Provided in Terms of Value (USD).

United States Travel Insurance Market Size and Share

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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.

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.

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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.

US Travel Insurance
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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

  1. Allianz Partners

  2. American International Group Inc.

  3. Berkshire Hathaway Travel Protection

  4. Generali Global Assistance

  5. Seven Corners Inc.

  6. *Disclaimer: Major Players sorted in no particular order
United States Travel Insurance Market Concentration
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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

Table of Contents for United States Travel Insurance Industry Report

1. Introduction

  • 1.1 Study Assumptions & Market Definition
  • 1.2 Scope of the Study

2. Research Methodology

3. Executive Summary

4. Market Landscape

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Surge in outbound U.S. leisure travel
    • 4.2.2 Embedded cover sold via U.S. OTAs & airlines accelerating adoption
    • 4.2.3 Extreme weather-related trip disruption driving medical & cancellation cover demand
    • 4.2.4 Medicare gaps abroad push retirees toward specialized medical cover
    • 4.2.5 Premium credit-card “top-up” awareness expanding voluntary uptake
    • 4.2.6 Affluent Baby-Boomer retirements boosting senior travel frequency
  • 4.3 Market Restraints
    • 4.3.1 Credit-card benefit perception suppressing standalone policy sales
    • 4.3.2 Fragmented state insurance regulation inflates compliance cost
    • 4.3.3 Price-sensitive >70-year travelers deterred by high premiums
    • 4.3.4 COVID-19 claim litigation eroding consumer trust in policy wording
  • 4.4 Value / Supply-Chain Analysis
  • 4.5 Regulatory or Technological Outlook
  • 4.6 Porter’s Five Forces
    • 4.6.1 Supplier Power
    • 4.6.2 Buyer Power
    • 4.6.3 Threat of New Entrants
    • 4.6.4 Threat of Substitutes
    • 4.6.5 Competitive Rivalry

5. Market Size & Growth Forecasts (Value)

  • 5.1 By Insurance Cover Type
    • 5.1.1 Single-Trip Travel Insurance
    • 5.1.2 Annual Multi-Trip Travel Insurance
    • 5.1.3 Long-Stay / Extended-Stay Travel Insurance
  • 5.2 By Coverage (Benefit) Type
    • 5.2.1 Medical & Emergency Care Expense
    • 5.2.2 Trip Cancellation & Interruption
    • 5.2.3 Baggage & Personal Effects Loss
    • 5.2.4 Flight / Travel Delay
    • 5.2.5 Other Add-On Coverage (Adventure Sports, Rental Car, etc.)
  • 5.3 By Distribution Channel
    • 5.3.1 Insurance Companies (Direct)
    • 5.3.2 Insurance Intermediaries & Agents
    • 5.3.3 Banks & Credit Unions
    • 5.3.4 Online Aggregators & Comparison Portals
    • 5.3.5 Travel Agencies & OTAs
    • 5.3.6 Airlines & Cruise Lines (Embedded)
  • 5.4 By End User Type
    • 5.4.1 Senior Citizens (65+)
    • 5.4.2 Family Travelers
    • 5.4.3 Business Travelers
    • 5.4.4 Student / Educational Travelers
    • 5.4.5 Solo Backpackers & Adventure Travelers
  • 5.5 By Geography
    • 5.5.1 Northeast
    • 5.5.2 Midwest
    • 5.5.3 South
    • 5.5.4 West

6. Competitive Landscape

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global-level Overview, Market-level Overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share, Products & Services, Recent Developments)
    • 6.4.1 Allianz Partners (Allianz Global Assistance)
    • 6.4.2 American International Group Inc. (AIG Travel Guard)
    • 6.4.3 Berkshire Hathaway Travel Protection
    • 6.4.4 Seven Corners Inc.
    • 6.4.5 Generali Global Assistance
    • 6.4.6 AXA Assistance USA
    • 6.4.7 IMG Global
    • 6.4.8 Travelex Insurance Services
    • 6.4.9 Nationwide Mutual Insurance Co.
    • 6.4.10 USI Affinity Travel Insurance Services
    • 6.4.11 Tokio Marine HCC – Medical Insurance Services
    • 6.4.12 Travel Insured International
    • 6.4.13 WorldTrips
    • 6.4.14 Arch RoamRight
    • 6.4.15 InsureMyTrip (Squaremouth Holdings)
    • 6.4.16 Allianz Partners USA (Jefferson Insurance Co.)
    • 6.4.17 AXA Equitable Life Insurance Co.
    • 6.4.18 Aviva Travel Insurance (U.S. division)
    • 6.4.19 MetLife Travel Insurance
    • 6.4.20 American Express Travel Insurance
    • 6.4.21 Chubb Travel Protection

7. Market Opportunities & Future Outlook

  • 7.1 White-space & Unmet-Need Assessment
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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
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
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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.

United States Travel Insurance Market Report Snapshots