Travel Insurance Market Research Report Information By Insurance Cover (Single-Trip Travel Insurance, Annual Multi-Trip Travel Insurance, and Long-Stay Travel Insurance), By Distribution Channel (Insurance Intermediaries, Insurance Companies, Banks, Insurance Brokers, and Insurance Aggregators), By End User (Senior Citizens, Education Travelers, Business Travelers, Family Travelers, and Others), By Age Group (1-17 Years Old, 18-30 Years Old, 31-49 Years Old, and Above 50), And By Region (North America, Europe, Asia-Pacific, And Rest of The

Travel Insurance Market Overview

Travel Insurance Market Size was valued at USD 21.6 Billion in 2023. The Travel Insurance market is projected to grow from USD 23.6 Billion in 2024 to USD 44.6 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.50% during the forecast period (2024 - 2032). The significant expansion of the travel and tourism sector in recent years, driven by increasing disposable incomes, growing business travel, and convenient access to online travel bookings and discounted vacation packages, is expected to be a significant market driver for the Travel Insurance Market.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Travel Insurance Market Trends

• 
  

  Growing tourism industry and government initiatives mandating travel insurance are driving the market growth

  
  

Market CAGR for Travel Insurance is being driven by the growing tourism industry and government initiatives mandating travel insurance. The travel industry has been growing due to the rise of budget and luxury housing standards in the past several years. The number of people moving for leisure is growing repeatedly, so there is no wonder the market of travel insurance is booming. According to the World Health Organization (WHO), about 1.5 billion people travel annually, a number anticipated to grow in the following years, says (WHO). Travel insurance helps travelers to prepare for unplanned events and bad experiences that may affect their travels. International tourism entities reached the USD1 trillion mark again in 2022 and grew 50% more than the growth in 2021, mainly due to the crucial increase in international visits. International visitors' tourism spending fell to 64% of the pre-pandemic levels (36% lower than the 2019 value in real terms). While regionally, Europe has so far been the best performer with almost USD 550 billion (EUR 520 billion), which accounts for 87% of pre-pandemic numbers, it is also important to be mindful of the uneven levels of recovery across the continent. Africa had the highest recovery in receipts, 75%, followed by the Middle East (70%), and the Americas (68%). Travel spending on Asian sites doubled to 28% as a result of the border closure for a long time.

Travel insurance assumes importance to a traveler while visiting a foreign destination where the insured companies handle medical emergencies, flight delays, loss or damage of baggage, and many other challenges. Travelers from different countries like the U.S., the UAE, New Zealand, and the Schengen area nations are now required to get travel insurance before they set off for those countries. This is leading to a surge in demand for travel insurance services among travelers. These counties, by the same token, asked for the attachment of travel insurance documents during their visa applications. Additionally, government and regulatory authorities enforced a range of travel rules applicable to travelers' visas and other requirements in many countries regarding the pandemic situation post-COVID-19. For instance, in 2021, the government of Singapore imposed a regulation to have travel insurance for travelers covering COVID-19-related medical care and hospitalization. As a result, it is anticipated that throughout the projection period, demand for the Travel Insurance Market will increase due to the Growing tourism industry and government initiatives mandating travel insurance. Thus, driving the Travel Insurance Market revenue.

Travel Insurance Market Segment Insights

• 
  

  Travel Insurance Market Insurance Cover Insights

  
  

The Travel Insurance Market segmentation, based on Insurance Cover, includes Single-Trip Travel Insurance, Annual Multi-Trip Travel Insurance, and Long-Stay Travel Insurance. The Single-Trip Travel Insurance segment dominated the market, accounting for 58% of market revenue. Contrary to regular and extensive travel, single trips are recorded in big numbers all over the world when people prepare and store their complete travel plans only a few times a year. The majority of people who don't fulfill the criteria of frequent travelers opt for a single-trip insurance policy. The “one trip” is the preferred choice for people who travel once or twice a year (that means they save money on the multi-trip one); the loss days in one case may be up to the renewal of it. The insured number of individuals in the middle-class population participating in travels across the globe at the same time, in pursuit of a higher disposable income, stands out as one of the major factors that add to the demand for travel insurance covering single trips.

Figure 1: Travel Insurance Market, by Insurance Cover, 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Travel Insurance Market Distribution Channel Insights

The Travel Insurance Market segmentation, based on Distribution Channel, includes Insurance Intermediaries, Insurance Companies, Banks, Insurance Brokers, and Insurance Aggregators. The Insurance Companies segment dominated the market, accounting for 58% of market revenue. Travel insurance companies are seeing skyrocketing growth within the travel insurance company category, especially with leading travel insurance providers. These companies can potentially make a dramatic gain from the emerging travel sectors by being able to adapt accordingly. With the advent of tailored travel experiences, insurance companies are creating policies that aim to cater to the particularity of chosen activities and places.

Travel Insurance Market End User Insights

The Travel Insurance Market segmentation, based on End User, includes Senior Citizens, Education Travelers, Business Travelers, Family Travelers, and Others. The Family Travelers segment dominated the market, accounting for 60% of market revenue. There is a tendency among families for them to take holidays and journeys together either for leisure, adventure, or educational reasons. As a result of this trend, it is especially apparent in the last but one year when the whole family rather spends their leisure time together. Insurance providers are considering more the types of families, such as those with small children, and they are making more specific plans intended for these families that include things like children's coverage, recreation centers coverage, and cancellation policies tailored to each family. This feature attracts families with a high level of individuality in their travel insurance needs, as well as those with particular preferences.

Travel Insurance Market Age Group Insights

The Travel Insurance Market segmentation, based on Age Group, includes 1-17 Years Old, 18-30 Years Old, 31-49 Years Old, and Above 50. The 18-30-year-old segment dominated the market, accounting for 60% of market revenue. Millennials and Gen Z, who are mostly digital natives and spend more of their time on the internet than in other places, are used to exploring and arranging their travels online themselves. They are more likely to know the problems that often occur while traveling, such as flight delays, trip cancellations, medical conditions, or theft. As a result, travel insurance planning becomes an integral part of their travel preparation.

Travel Insurance Market Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The anticipated expansion of the Travel Insurance market in North America can be attributed to several key factors. An article published by The U.S. Department of Commerce Statistics states that the U.S. is in first place in the region of North America by the volume of outbound travelers, with about 80.7 million of them in 2022. In addition, the leading players in the North America travel insurance market demonstrate this active approach through their innovative initiatives, which points to a lively and developing marketplace that responds to the diverse demands of tourists around the world. Meetings and events generated over $100 billion in spending for travel booking purposes in the U.S. in 2022, which supported more than half a million American jobs.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: TRAVEL INSURANCE MARKET SHARE BY REGION 2023 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Travel Insurance Market accounts for the second-largest market share as the European area is experiencing an expanding interest in travel and tourism, which is a major contributor to this increase. According to the recent data, the EU citizens made a total of €474 billion worth of domestic and foreign trips in 2022. The trips abroad took the main share of this figure (53%). Nationals of the European countries spent 88% of their expenditure on trips within the European region and 82% inside EU member states. European persons are commonly estimated to have been spending €275 on domestic trips and €952 on foreign ones in 2022. Besides that, with speedy economic growth in the region and privileges that are given to frequent travelers by travel insurance companies, it is expected that the number of people who are using travel insurance will grow in the region. Further, the German Travel Insurance Market held the largest market share, and the UK Travel Insurance Market was the fastest-growing market in the European region.

The Asia-Pacific Travel Insurance Market is expected to grow at the fastest CAGR from 2024 to 2032. The tourism sector in India is a huge contributor to India's economy, being a vital part of the Indian growth. Over the last several years, the world's tourism sector has experienced continuous growth. According to the World Tourism Organization, 12 million international visitor arrivals were recorded in 2021. The share of the tourism industry in the Indian GDP is 9.2% in the year 2020. Tourism contributed to about 50 million jobs. The tourism sector imparted about 8.1 percent of India's workforce. By 2027, most of the research shows that the size of tourism in India is estimated to increase by 7%, thus producing an output of $450 billion in industry. The development of the tourism industry is the reason the number of cases of baggage, documents, medical problems, and natural catastrophes is growing. A steadily growing number of people are taking a safety net of travel insurance to cover their losses due to unforeseeable circumstances. Hence, the tourist industry’s huge growth is a catalyst for the development of the travel insurance market. Moreover, China’s Travel Insurance Market held the largest market share, and the Indian Travel Insurance Market was the fastest-growing market in the Asia-Pacific region.

Travel Insurance Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Travel Insurance market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Travel Insurance industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Travel Insurance industry to benefit clients and increase the market sector. In recent years, the Travel Insurance industry has offered some of the most significant advantages to the peace of mind and financial security of travelers worldwide. Major players in the Travel Insurance Market, including Passport Card, Assicurazioni Generali S.P.A., Staysure, American International Group, Inc., Trailfinders Ltd., AXA, Insurefor.com, Zurich, Aviva, Just Travel Cover are attempting to increase market demand by investing in research and development operations.

American International Group, Inc. is a multi-line insurance group. It is a group that offers an insurance package of life, property (casualty), retirement products (of the self) as well as other financial services to individuals and businesses. This segment covers six discrete schemes: general liability, directors’ and officers’ liability, property, workers’ compensation, marine, aerospace, environmental, commercial automobile liability, term life, universal life, fidelity, fiduciary liability, cyber risk, as well as errors and omissions. It also belongs to the realm of political risk insurance, accident and health insurance, personal auto insurance, travel insurance as well as individual and group retirement products. It sells its products in the market through brokers, captive and independent agents, affinity partners, retailers, and airlines allied with travel agents. AIG serves the financial institutions in the Americas, Europe, Africa, the Middle East, and Asian-Pacific regions. AIG is headquartered in New York, US. In November 2021, the insurance giant American International Group, Inc. made a partnership with Goose Insurance Services, which is among the innovative insurance technology companies, making it convenient and faster for individuals to acquire appropriate coverage through mobile apps. This collaboration comprises the introduction of income protection and hospital cash insurance products made specifically for Canada’s fast-growing gig economy through digital carriers.

AXA is an insurance company that caters to both life and non-life insurance products. It includes life insurance and financial products that cover, among other things, individual life insurance, group life insurance, health and personal protection, and individual-based and group retirement savings. The company has a product and casualty insurance package, which comprises motor, household, property, and general liability insurance and, in addition to that, retail banking products and services. AXA targets individual and business customers using its agent network, both with individual agency staff members and with brokers, independent advisors, banks, and partners. In addition to direct sales channels such as telephone, mail, and Internet, it is distributed through the marketing distribution channels. AXA has its headquarters in Paris, France.

Key companies in the Travel Insurance Market include

• Passport Card


• Assicurazioni Generali S.P.A.


• Staysure


• American International Group, Inc


• Trailfinders Ltd


• AXA


• com


• Zurich


• Aviva


• Just Travel Cover

Travel Insurance Industry Developments

May 2022: Generali Group secured a 25% ownership in Future Generali India Insurance (FGII), granting Generali Group a controlling interest in FGII, which ranks as the 7th largest non-life insurer in India. This acquisition enables Generali Group to broaden its footprint in the Indian market and provide an extensive array of travel insurance offerings to Indian travelers.

February 2023: Vistara established a partnership with Allianz Partners to present optional travel insurance to its passengers. During the booking procedure for domestic and international flights, customers now have the opportunity to select travel insurance.

Travel Insurance Market Segmentation

Travel Insurance Market Insurance Cover Outlook

• Single-Trip Travel Insurance


• Annual Multi-Trip Travel Insurance


• Long-Stay Travel Insurance

Travel Insurance Market Distribution Channel Outlook

• Insurance Intermediaries


• Insurance Companies


• Banks


• Insurance Brokers


• Insurance Aggregators

Travel Insurance Market End User Outlook

• Senior Citizens


• Education Travelers


• Business Travelers


• Family Travelers


• Others

Travel Insurance Market Age Group Outlook

• 1-17 Years Old


• 18-30 Years Old


• 31-49 Years Old


• Above 50

Travel Insurance Market Regional Outlook

North America

• US


• Canada

Europe

• Germany


• France


• UK


• Italy


• Spain


• Rest of Europe

Asia-Pacific

• China


• Japan


• India


• Australia


• South Korea


• Rest of Asia-Pacific

Rest of the World

• Middle East


• Africa


• Latin America