Travel Insurance Market

Travel Insurance Market Outlook (2024 to 2034)

The global travel insurance market is projected to generate revenue worth US$ 51.67 billion in 2024 and has been thoroughly analyzed to expand at 7.2% CAGR to reach a size of US$ 103.56 billion by the end of 2034.

The travel industry has a direct impact on the demand for travel insurance across the world. A travel insurance company covers the risks that occur during travel, such as loss of passport, baggage, and money. They also provide coverage for bookings that are canceled by the customer. Apart from these services, travel insurance companies assist customers in claiming their insurance and finding a hospital in case of an emergency.

Continuous developments such as easy online travel booking are positively affecting the travel insurance market growth. Several companies involved in the online booking field are promoting travel insurance in their applications or platforms. Travel insurance services are easily available on online platforms that are utilized for travel bookings. This approach is helping customers reach travel insurance companies easily and is enhancing consumer awareness regarding the same.

Key Market Growth Drivers

• Travel insurance is gaining popularity all over the world, particularly since the pandemic more people are widely looking for security against lost luggage, medical problems, and trip cancellations.
• The interest of several individuals is extremely increasing in riskier adventures and extreme activities such as scuba diving, skiing, hiking, and others while they are traveling, because of this, demand for travel insurance is also increasing because of the possibility of related physical harm.
• As several companies are growing internationally, along with this number business travel is also rising. Employers are purchasing employee travel insurance to cover medical costs, vacation delays, and misplaced luggage.
• One of the key travel insurance market trends is insurance companies are increasingly offering more flexible and specialized policies that cover a wide range of services such as trip cancellations, adventure sports, and medical evacuations, thus attracting a large consumer base.
• Travelers now more easily identify policies that meet their needs due to the availability of online comparison and purchasing platforms for travel insurance, which is driving the market growth.
• Nowadays, several countries, particularly those that grant visas to visitors and students, demand evidence of valid travel insurance. This is especially true in Europe where it is required to have comprehensive travel insurance due to Schengen visa regulations.

Report Attribute	Detail
Automated Border Control Market Size (2024E)	US$ 51.67 Billion
Forecasted Market Value (2034F)	US$ 103.56 Billion
Global Market Growth Rate (2024 to 2034)	7.2% CAGR
East Asia Market Share (2024E)	22.4%
North America Market Value (2024E)	US$ 11.3 Billion
Annual/Multiple Trips Segment Value (2034F)	US$ 52.09 Billion
International Segment Value (2034F)	US$ 55.2 Billion
Key Companies Profiled	AXA Assistance USA; Berkshire Hathaway Travel Protection; Allianz Travel Insurance; Flexicover Travel Insurance; Cover For You; World Nomads Travel Insurance; Staysure; Tata AIG General Insurance Company Limited; AA Travel Insurance; Virgin Money Travel Insurance; Aviva; HTH Travel Insurance; Nationwide Insurance; IMG Travel Insurance; Generali Global Assistance; Travelex Insurance Services; Seven Corners.

Which Factors are Positively Influencing the Market for Travel Insurance?

“Several Governments Making Travel Insurance Compulsory Before Entering into Country”

Travel insurance is important while traveling to a foreign country where companies cover medical emergencies, flight delays, loss or damage of baggage, and other issues. The governments of various countries such as the United States, UAE, New Zealand, and Schengen countries are mandating travel insurance while traveling to their countries, which is driving the demand for travel insurance services. These counties are mandating attaching travel insurance documents while applying for a visa.

In several countries, government and regulatory authorities have laid down strict regulations on travelers regarding visas post-COVID-19 pandemic. With the presence of strict government norms, the need for travel insurance is increasing at a significant pace worldwide.

“Companies Integrating Advanced Technologies to Improve Services”

To improve current travel insurance platforms, service providers are opting for advanced technologies such as artificial intelligence (AI), data analytics, and machine learning with GPS, which is resulting in sizable profit creation for them. To enhance their services and fulfill clients’ expectations, several travel insurance companies are seeking to strengthen their connections with insurers. The purpose of these upgrades is to enhance the experience for customers.

Key players in the travel insurance market are also taking initiatives regarding the integration of blockchain technology. Blockchain technology is efficiently making easy claims process by automating touchpoints from First Notice of Loss/First Notification of Loss to claim payments. This is becoming beneficial for market players for hassle-free claims processing and client engagement, which is contributing to the travel insurance market size expansion.

What is Limiting the Expansion of the Global Market?

“High Costs Associated with Premiums Limiting Market Growth”

A key factor restraining the growth of the market is the lack of understanding and awareness about travel insurance among several people. Also, the high cost of premiums is limiting the adoption rates, particularly consumers with tight budgets are avoiding it. Costs involved in complete travel insurance policies are generally higher as they include extensive coverage for medical emergencies, trip cancellations, lost luggage, and other scenarios.

Several travelers find the added expenditure of insurance to be difficult, especially those who are already keeping a close eye on their spending for lodging, airfare, and other travel-related costs.

Country-wise Insights

The North American region is estimated to hold 21.9% of the worldwide travel insurance market share in 2024 and is further forecasted to account for 24.7% by 2034. Western & Eastern Europe holds a significant portion of the market due to Schengen visa regulations, which require travel insurance for applicants.

Why is the Purchasing Rate of Travel Insurance Rising in the United States?

“Higher Incidences of Corporate Travelling Positively Impacting the Market”

Attribute	United States
Market Value (2024E)	US$ 5.03 Billion
Growth Rate (2024 to 2034)	8.8% CAGR
Projected Value (2034F)	US$ 11.65 Billion

Corporate travel is becoming more common as companies are growing internationally, because of this, businesses in the United States are heavily investing in travel insurance for their employees. This insurance is becoming essential in the corporate world for handling possible problems that affect business operations and employee well-being such as medical emergencies, canceled trips, and misplaced luggage.

Businesses in the United States are widely purchasing travel insurance to lower financial risk and improve worker safety by providing them to safeguard their employees when on foreign projects. Other than this, the United States hosts millions of visitors such as students, travelers, businessmen, and others, this is further contributing to market expansion.

What is the Demand Outlook for Travel Insurance in South Korea?

“Several Companies Providing Excellent Coverage Solutions with Additional Flexibility”

Attribute	South Korea
Market Value (2024E)	US$ 2.57 Billion
Growth Rate (2024 to 2034)	8% CAGR
Projected Value (2034F)	US$ 5.53 Billion

Travelers or individuals are widely purchasing travel insurance in South Korea because of the better coverage offered by several companies. More flexible and all-inclusive policies that cover anything from medical crises to trip delays and cancellations are now provided by insurance companies in the country.

Insurance is becoming more relevant and appealing when travelers choose the coverage that best suits their unique needs, such as extended travel or adventure sports, due to these customized alternatives. This adaptability not only meets a range of traveler requirements but also offers comfort, which encourages South Korean tourists to purchase travel insurance more commonly.

Category-wise Insights

Based on application, the market is segmented into individuals and groups. The individual segment holds a significant portion of the market as these travelers have different wants and preferences, and they are mostly looking for coverage that is customized to meet their particular demands and trip itinerary.

Why is a Large Portion of People Purchasing Annual/Multiple Trip Coverage Insurance Plans?

“Cost-Effectiveness and Ideal Solution for People Who Continuously Travels”

Attribute	Annual/Multiple Trips
Segment Value (2024E)	US$ 26.46 Billion
Growth Rate (2024 to 2034)	7% CAGR
Projected Value (2034F)	US$ 52.09 Billion

The demand for annual/multiple trips coverage insurance plans is higher in comparison with single trip policies because they offer the best value and convenience for individuals who need to travel continuously from one destination to another. Annual and multiple-trip policies cover an unlimited number of trips within a year which offers peace of mind and potentially lower overall expenses compared to purchasing single-trip policies multiple times. People who require to travel several times a year are finding these long-term policies ideal for them as they eliminate the need to arrange insurance for each trip.

Even though one-time investments or premiums are high for annual or multiple-trip policies, it is an extremely money-saving solution for people who travel frequently.

Which Trip Type Segment Holds a Significant Portion of the Market?

“High Expenditures Related to Traveling Abroad”

Attribute	International
Segment Value (2024E)	US$ 27.85 Billion
Growth Rate (2024 to 2034)	7.1% CAGR
Projected Value (2034F)	US$ 55.2 Billion

The international segment is evaluated to account for 53.9% of revenue share in 2024 because it covers the higher risks and possible expenses associated with traveling overseas. Traveling abroad generally needs high costs related to medical, trip cancellations, and other unexpected incidents, and because of this unfamiliarity with healthcare systems and legal variations, the demand for travel insurance is high for international trips.

Travelers who are going abroad also look for more extensive coverage to guard against things such as lost luggage and emergency evacuation. As a result, compared to domestic travel, the complexity and risks associated with foreign travel increase the need for comprehensive insurance coverage.

Competitive Landscape

Prominent players in the travel insurance market are focusing on expanding their product offerings by adding specialized policies for adventure sports, long-term travel, and others to increase the profit margin and grab the attention of travelers.

• In July 2024, the new Annual Multi-Trip (AMT) package from World Nomads, a global supplier of travel insurance, was introduced in the United Kingdom and Ireland. According to Insurance Edge, the launch comes after a strategic underwriting collaboration with Collinson, one of the top travel insurance companies in the United Kingdom that is committed to enabling easy and confident travel for everyone.
• In March 2024, 'Travel Guard Plus' was introduced by TATA AIG General Insurance, which covers about one-third of the country's international travel insurance premiums. The plan offers coverage for up to one year through multiple or single journeys.
• In September 2022, Insurtech Startup InsuranceDekho enhanced its service offerings by introducing travel insurance on its online platform. The company has partnered with leading insurance organizations such as Reliance General, Bajaj Allianz, ICICI Lombard, and others to offer travel insurance services.
• In April 2022, online platform Trip.com and AXA Partners announced the expansion of a new travel insurance product in the European region that was introduced in the United Kingdom in 2021. It offers a wide range of benefits such as cancellation, baggage cover, medical emergency cover, and others.

Fact.MR provides detailed information about the price points of key providers of travel insurance positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of Travel Insurance Market Research

• By Coverage Type :

  • Single Trips
  • Annual/Multiple Trips

• By Trip Type :

  • Domestic
  • International

• By End-use Application :

  • Individual
  • Group

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa