Authored By: Sarah
03 Jul 2024

 Travel Insurance Market Size to grow by USD 10397.19 million between 2023-2027

According to a research report “ Travel Insurance Market” by End-user (Senior citizens, Business travel, Family travel, Others) Type (General travel insurance, Premium travel insurance) Geography (North America, Europe, APAC, Middle East and Africa, South America)- Global Forecast to 2027 published by Technavio, the market size is estimated to grow by USD 10397.19 million, at a CAGR of  9.69% during the forecast period. The travel insurance market has experienced significant expansion in response to the burgeoning travel and tourism sector, fueled by increasing disposable income levels, a surge in business travel, and the convenience of online booking platforms. Mandatory visa requirements, which include the submission of travel insurance documents in countries such as the US, the UK, Australia, Germany, and Belgium, further bolster market growth. Leading industry players, including AXA and Allianz Group, are leveraging digital tools like API, AI, data analytics, and GPS to enhance distribution systems and deliver customized user experiences.

Browse market data tables, figures, and in-depth TOC on “Travel Insurance Market” by End-user (Senior citizens, Business travel, Family travel, Others) Type (General travel insurance, Premium travel insurance) Geography (North America, Europe, APAC, Middle East and Africa, South America) Global Forecast to 2027. Download Free Sample

 

By End-user, the Senior citizens segment is projected to dominate the market size in 2024

General travel insurance represents a vital financial safety net for individuals embarking on journeys, offering protection against financial losses and unexpected emergencies. This type of insurance policy covers various risks and expenses related to traveling, including trip cancellations or interruptions due to reasons such as illness, injury, or unforeseen circumstances. The comprehensive coverage extends to non-refundable travel expenses and medical expenses, including hospitalization, doctor visits, prescription medications, and emergency medical evacuation. The growing trend of domestic and international tourism is expected to fuel the adoption of general travel insurance, making it an essential investment for travelers.

By Type, General travel insurance  segment is expected to hold the largest market size for the year 2024

Travel insurance plans cater specifically to the needs of senior citizens, providing extensive coverage for age-related health concerns and exclusions typically found in standard travel insurance policies. In some jurisdictions, visitors must purchase travel insurance as a prerequisite for obtaining a visa. When selecting travel insurance, elderly travelers can customize their coverage according to their unique requirements and the regulations of their destination. For instance, American International Group (AIG) offers comprehensive medical coverage for expenses related to COVID-19 for policyholders outside of India. These plans offer essential protection for senior travelers, safeguarding against overseas medical expenses, theft of personal belongings, and other potential risks, depending on the specific coverage chosen.

North America is forecasted to hold the largest market size by region in 2024

In North America, a significant proportion of the population engages in annual leisure travel, either domestically or internationally. With an increasing trend towards adventure sports and activities, travel risks have become more pronounced. Consequently, travel insurance vendors have responded by providing customized and specialized policies to cater to diverse customer requirements. This proactive approach has fueled the demand for travel insurance products, as they help mitigate various travel risks, such as weather disruptions, mechanical delays, and medical emergencies. Furthermore, regulatory changes in marketing and sales of insurance products have led central insurance bodies to develop more appealing and pertinent offerings for customers.

The Travel Insurance Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • Allianz SE
  • American Express Co.
  • American International Group Inc.
  • Arch Capital Group Ltd.
  • Assicurazioni Generali S.p.A.
  • Aviva insurance Ltd.
  • AXA Group
  • Berkshire Hathaway Inc.
  • British United Provident Association Ltd.
  • Chester Perfetto Agency Inc.
  • Chubb Ltd.
  • Fairfax Financial Holdings Ltd.
  • HanseMerkur Reiseversicherung AG
  • HDFC Ltd.
  • MAPFRE S.A.
  • Seven Corners Inc.
  • SiriusPoint Ltd.
  • Sun Life Financial Inc.
  • The Goldman Sachs Group Inc.
  • Zurich Insurance Co. Ltd.
.

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Research Analysis Overview

In today's changing travel landscape, adaptability is key for modern travelers. Trip Insurance has become an essential safeguard against potential risks, providing coverage for inconveniences like flight delays, lost baggage, and medical emergencies. With increasing uncertainty due to terrorist attacks, political unrest, natural disasters, and even global events like the Malaysian airliner tragedy, travelers need comprehensive protection. Business travelers, family travelers, education travelers, and domestic travelers alike can benefit from customized travel insurance policies. Insurance aggregators and brokers offer various plans to cater to diverse travel conditions and vulnerabilities. Longstay travelers, for instance, may require additional coverage for extended periods abroad. Trip cancellations due to unforeseen circumstances like lockdown measures can also be covered. As global travel becomes more complex, travel insurance becomes an indispensable tool for managing potential risks. Customization, flexibility, and comprehensive coverage are essential features for today's travel insurance market.

Market Research Overview

The travel insurance market is a dynamic and evolving industry, with various players including Foundation Capital, Comcast Ventures, and Abstract Ventures, investing in innovative insurtech solutions. Customization options are becoming increasingly important for travelers, as they face various health risks, natural calamities, and other potential risks during their journeys. Insurance vendors offer different types of coverage for international and domestic travelers, including package holidays, longstay insurance, and trip insurance. Millennials and education travelers are important customer segments, with unique travel needs and vulnerabilities. Insurance aggregators and brokers play a crucial role in helping travelers compare and purchase insurance policies from various insurance companies and intermediaries. However, there is a lack of awareness about the importance of travel insurance among some travelers, leading to potential costs and losses from flight cancellations, lost passports, and other inconveniences. Direct airline sites and travel companies offer insurance upsells, but it is essential to carefully review the coverage and compare it with other options. Modern travelers face various risks, including epidemics, terrorist attacks, political unrest, natural disasters, and changing travel conditions. Travel insurance providers are recalibrating their offerings to address these risks, offering customized coverage for specific activities like adventure sports and personal property. Insurtech companies are also adapting to the needs of business travelers, offering solutions for lost luggage, flight delays, and medical emergencies. With the uncertainty of global travel, having the right travel insurance coverage is more important than ever.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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