Market Overview
The
Travel Insurance Market is expected to reach a market
value of USD 25.3 billion in 2024, globally, which will further
grow to USD 95.9 billion by 2033 at a CAGR of 16.0%.
The travel insurance industry means the delivery and purchase of insurance-like products designed to minimize financial risks originating from travel. Simultaneously with the growing world of which the countries are more and more united by a common system of trade, high competition, and mutual investments, the demand for travel insurance has experienced steep growth. Leading factors such as increasing global travel, growing travel safety awareness, and strict regulations in some regions contribute to the market growth.
The market of travel insurance for those going abroad provides the most comprehensive and diverse coverage matching each traveler type and their requirements. This kind of insurance product is an assistance for urgent medical care abroad, trip cancellations, lost baggage, and other unexpected situations that could occur during the journey. Also, travel insurance companies add emergency
medical evacuation and after-sale service including the 24/7 phone staff to the features of their product, therefore, increasing the utility of travel insurance for travelers.
Key Takeaways
- Market Value: The market size is projected to reach a market value of USD 28.9 billion in 2025, in comparison to USD 95.9 billion in 2033 at a CAGR of 16.0%.
- Market Definition: The travel insurance marketplace encompasses the buying and selling of insurance products designed to minimize the financial risks related to travel, which includes medical emergencies, cancellations, and lost baggage.
- Type Segment Analysis: International travel insurance is expected to exert its dominance in the type segment with the highest market value by the end of 2024.
- Insurance Cover Segment Analysis: Single-trip insurance is projected to exert its prominence in the insurance cover segment with the highest market share in 2024.
- Coverage Segment Analysis: Travel insurance is projected to command the travel insurance market with the highest market value in 2024.
- Distribution Channel Segment Analysis: Insurance Companies are projected to exert their dominance in the distribution channel segment with the highest market value by the end of 2024.
- End User Segment Analysis: family travelers are expected to dominate this market with a market share of 37.2% in 2024.
- Regional Analysis: Europe is predicted to dominate the travel insurance market with 34.1% of the market share in 2024.
Use Cases
- Trip Cancellation: Reimburses non-refundable trip expenses if tourists cancel because of covered reasons like illness, loss of life, or intense weather, mitigating economic losses.
- Medical Coverage: Covers emergency medical expenses, hospitalization, and evacuation overseas, ensuring access to excellent healthcare facilities without high cost.
- Baggage Loss/Delay: Provides reimbursement for misplaced, stolen, or behind-schedule baggage, permitting tourists to replace necessities and continue their journey easily.
- Travel Assistance: Offers 24/7 aid for emergencies like clinical referrals, legal aid, and coordination of travel preparations, making sure of tourists' safety and well-being.
- Trip Interruption: Reimburses extra costs if tourists must reduce their trip due to covered motives, minimizing economic impact and inconvenience.
Market Dynamic
The travel insurance market is experiencing robust growth, driven by increasing demand for travel medical insurance and the convenience of purchasing insurance through online travel bookings and comparison sites Travel Insurance offers critical risks ranging from trip interruptions to medical emergencies.
Among the myriad travel insurance policies available, single-trip annual multi-trip policies are the most common Insurance types offered by insurance companies Market players in the travel insurance industry include Allianz Global Assistance and AXA SA, and growing awareness of the importance of magic use but factors such as negative impacts on travel, such as natural disasters or geopolitical events, can affect market dynamics and affect travel insurance sales however the overall prospects for the travel insurance market are expected to remain positive, with growth expected to continue in the coming years.
The tour coverage market is dynamic, pushed through evolving consumer preferences, technological advancements, and changing travel trends. Factors such as changing guidelines, geopolitical events, and health crises profoundly impact marketplace dynamics. Additionally, increasing consciousness of the importance of tour coverage and the developing need for comprehensive insurance make contributions to the market growth. Insurers always innovate to offer tailored products, at the same time as distribution channels adapt to fulfill customer wishes. Competitive pricing techniques, strategic partnerships, and digitalization further shape the landscape. Overall, the market's fluidity underscores the need for adaptability and responsiveness among industry players to thrive in a rapidly changing environment.
Research Scope and Analysis
By Type
International travel insurance dominates the type segment due to the unique risks associated with overseas travel and the overall coverage Individuals face a variety of challenges that can arise when traveling internationally, such as medical emergencies, travel cancellations, lost items, and legal issues must be included. One of the main reasons why international travel insurance dominates this segment is the need for adequate medical coverage.
Healthcare costs in many countries can be exorbitant, and passengers may need medical treatment or evacuation if they become ill or injured. International travel insurance usually includes robust medical coverage, allowing travelers access to essential health care without bearing extra costs.
In addition, international travel insurance often provides additional benefits such as early medical evacuation, repatriation of the remainder, and emergency dental coverage, which are important features of comprehensive travel protection. Financial compensation for passengers, in the case of reconfiguration of travel systems where support is also available. Nevertheless, the general characteristic of international travel insurance is its ability to manage the risks of international
travel management helps to dominate this segment.
By Insurance Cover
Single-trip travel insurance is projected to dominate the travel insurance market and command
with 63.7% market share in 2024. This segment is segmented into single-trip travel insurance where single trip dominates and the multi-trip travel insurance segment shows the highest growth potential after it. The biggest segment in travel insurance is single-trip insurance which is preferred for its convenience, price point, and applicability to the majority of travelers.
This type of coverage is ideally suited for trips lasting for a few days or a week or two, according to individual or family plans, as it provides a convenient way of insurance for occasional vacations and business trips. The policies provide inclusiveness protection against a wide range of risks such as cancellations, medical emergencies, baggage loss, and delays. It makes the passengers comfortable on their journey through its comprehensive coverage of risks. Besides that, single-trip insurance travel is very flexible because it enables travelers to alter or buy even the basic package based on their circumstances and spending capacity.
Instantly the ponderous nature of the process of buying single-trip cover disappears when the flexibility feature is included, as this is suitable for travelers who may not need coverage for more than one journey in a year. Single-journey insurance makes it easier for passengers from scheduled trips to obtain coverage tailored to each journey. In other words, all together, the combination of convenience, affordability, and overall coverage makes single-trip insurance the preferred option for many travelers, giving it its dominance in the insurance sector and covering a portion of the travel insurance market.
By Coverage
In terms of coverage provided in travel insurance, medical expenses dominate the travel insurance market with the highest market share in 2024. The medical insurance segment prevails in the travel insurance market owing to its critical function of health safeguard and financial protection of travelers. Health crises may occur suddenly while one is traveling, leaving the traveler without adequate coverage and thus exposed to the risk of extreme medical expenses especially when a health emergency arises abroad, which may be more expensive than in their home country due to whether the traveler has some insurance or not as well as purchase full medical benefits.
Medical cost coverage usually includes a very wide range of screened services which includes hospitalization, emergency treatment, evacuation, and repatriation hence enabling travelers to help themselves during the time of crisis. Furthermore, the increasing cost of health care global has highlighted the need for adequate transportation costs. Insurance companies are recognizing this trend and are offering plans with strong medical benefits to meet the growing demand.
In addition, legal requirements in some jurisdictions may require travelers to obtain appropriate medical insurance prior to entry, giving rise to the requirement for travel insurance policies that include comprehensive medical expenses Overall, medical expense coverage dominates the global travel insurance market. Following single-trip travel insurance, annual multi-trip travel insurance is expected to have subsequent market share in the forecast period in the travel industry as it mainly serves business travelers.
By Distribution Channel
Insurance companies are projected to dominate the travel insurance market with the highest market share in 2024. Their dominance in the distribution channel segment of the travel insurance market is due to direct access to consumers and established brand recognition. As primary providers of insurance products, insurance companies have extensive experience in underwriting policy and claims management. With dedicated sales teams and customer service representatives, insurance companies can effectively promote their travel insurance products through various channels including their websites, call centers, and physical branches.
In addition, insurance companies often have existing relationships with other businesses, such as airlines, travel agencies, and online booking systems, thus creating strategic partnerships and cross-border sales opportunities this combination enables insurers to reach consumers at multiple points along their travel journey, besides increasing convenience and accessibility, insurers have resources to invest in marketing campaigns, products, and consumers support programs to further strengthen their competitive advantage in the distribution channel segment Overall, insurance companies direct access, expertise and strategic partnerships position them as key players to provide travel insurance for products to consumers. In recent times, travel insurance via online comparison shopping has become popular as it gives the consumer the idea about different travel insurance services and plans in one place.
By End User
Family travelers are projected to dominate this market with 37.2% of the market share in 2024. Family travelers occupy a significant portion of the travel insurance market due to their unique needs and considerations. Families often include children and elderly relatives, requiring full insurance coverage to cover all trips Family travelers often prefer insurance policies that offer comprehensive medical coverage, including coverage for pre-existing conditions, and travel cancellations or cancellations due to unexpected events such as illness or emergencies, arranging family travel, such as booking flights, accommodations, and more personalized activities increase the risk of unexpected problems, making travel insurance an important investment for peace of mind.
In addition, family travelers are more likely to go on long trips or vacations, increasing risks such as flight delays, lost luggage, and overseas medical emergencies and consequently often require travel insurance policies for a complete range of possible scenarios for a wide range of objects. Furthermore, the emotional and financial risk is greater for family travelers, as they prioritize the safety and well-being of their loved ones above all else. This greater concern for the well-being of family members leads them to prioritize their travel insurance coverage, and it gives them a significant market share.
The Travel Insurance Market Report is segmented on the basis of the following:
By Type
By Insurance Cover
- Single-Trip Travel Insurance
- Annual Multi-Trip Travel Insurance
By Coverage
- Medical Expenses
- Trip Cancellation
- Trip Delay
- Property Damage
- Other
By Distribution Channel
- Insurance Intermediaries
- Insurance Companies
- Banks
- Insurance Brokers
- Insurance Aggregators
By End User
- Family Travelers
- Senior Citizens
- Education Travelers
- Business Travelers
- Others
Regional Analysis
Europe is expected to dominate the travel insurance market
with 34.1% of the market share in 2024 and show subsequent growth rates in the
upcoming period of 2024 to 2033. Every year a large number of European travelers contribute to the dominance of Europe in this market. Also, the wide demographics of this region which have a connection with many regions by means of air, land, and water make it more convenient for travelers to travel from one region to another and play a significant part in the dominance of this region.
Not only does this region have well-developed demographics which are pushing its growth but also the stringent regulations in Europe require tourists to have travel insurance, further aiding the market growth. European insurers offer a wide variety of innovative products to this market specifically tailored to fulfill the diverse requirements of the consumer, which improves their appeal regionally and globally.
Furthermore, Europe's mounted coverage enterprise infrastructure and expertise function European organizations as leaders in imparting reliable and efficient tour insurance services.
The presence of major players which includes Allianz, AXA, and Generali in addition solidifies Europe's dominance inside the market. Moreover, Europe's awareness of consumer safety and incredible carrier requirements have contributed to building trust and loyalty among tourists, reinforcing the region's main position within this market.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
The travel insurance market sees tough competition from key players such as Allianz Global Assistance, AXA SA, AIG, Zurich Insurance Group, Chubb Ltd, Generali Group, and others. These companies offer a wide range of options to suit different types of travelers' needs. Many travelers prefer to plan their whole travel plan online through traveling sites and online travel agents. With a focus on innovation, customer support, and strategic partnerships, these corporations have established sturdy global presences and are dependent on companies inside the enterprise.
Additionally, online travel insurance channels like InsureMyTrip contribute to the aggressive landscape by permitting travelers to examine and buy policies from multiple insurers according to their specific requirements. The travel insurance market is dynamic, with ongoing shifts driven by factors that include regulatory changes, rising risks, and evolving consumer preferences.
Some of the prominent players in the Travel Insurance Market are:
- Allianz
- American International Group, Inc.
- AXA
- ASSICURAZIONI GENERALI S.P.A.
- USI Insurance Services, LLC
- Insure & Go Insurance Services Limited
- Seven Corners Inc.
- Travel Insured International
- Zurich
- Delphi Financial Group, Inc.
- Ping An Insurance (Group) Company of China, Ltd.
- Other Key Players
Recent Development
- In December 2023, The Competition Commission of India (CCI) approved Temasek Holdings' subsidiary, V-Sciences Investments Pte. Ltd, to acquire equity shares of Niva Bupa Health Insurance Company Limited.
- In September 2023, Latham & Watkins advised GGW Group to acquire Assurever, a French travel insurance brokerage leader. The Paris team led negotiations, aiming to boost GGW's growth in new markets.
- In May 2023, Travel insurance startup Faye raised USD 10.0 Million led by Munich Re Ventures. Offers real-time assistance, and coverage for trips, health, belongings, and pets. Plans expansion nationwide.
- In April 2023, Specialty Program Group LLC acquired Squaremouth, a top U.S. travel insurance digital marketplace. This expands SPG's digital reach, enhancing client experience and affirming its industry leadership.
- In May 2022, Vidal Health acquired Vipul MedCorp, forming a merged entity with 29 branches across South Asia, boasting a high revenue.
Report Details
| Report Characteristics |
| Market Size (2024) |
USD 25.3 Bn |
| Forecast Value (2033) |
USD 95.9 Bn |
| CAGR (2023-2032) |
16.0% |
| Historical Data |
2018 – 2023 |
| Forecast Data |
2024 – 2033 |
| Base Year |
2023 |
| Estimate Year |
2024 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Type (Domestic, and International), By Insurance Cover (Single-Trip Travel Insurance, and Annual Multi-Trip Travel Insurance), By Coverage (Medical Expenses, Trip Cancellation, Trip Delay, Property Damage, and Other), By Distribution Channel (Insurance Intermediaries, Insurance Companies, Banks, Insurance Brokers, and Insurance Aggregators), By End User (Family Travelers, Senior Citizens, Education Travelers, Business Travelers, and Others) |
| Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
| Prominent Players |
Allianz, American International Group Inc., AXA, ASSICURAZIONI GENERALI S.P.A., USI Insurance Services LLC, Insure & Go Insurance Services Limited, Seven Corners Inc., Travel Insured International, Zurich, Delphi Financial Group Inc., Ping An Insurance (Group) Company of China, Ltd., and Other Key Players |
| Purchase Options |
We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively. |
Frequently Asked Questions
The Travel Insurance Market size is estimated to have a value of USD 25.3 billion in 2024, globally and is expected to reach USD 95.9 billion by the end of 2033.
Europe is expected to have the largest market share in the Travel Insurance Market with a share of about 34.1% in 2024.
Some major key players in the Travel Insurance Market are Allianz, American International Group Inc., AXA, ASSICURAZIONI GENERALI S.P.A, and many others.
The market is growing at a CAGR of 16.0 percent over the forecasted period.