Travel Insurance Market Size By Type (Domestic, International), By Trip (Single, Multiple, Extended), By Provider (Insurance Companies, Banks), By End-Use (Senior Citizens, Corporate Travelers, Family Travelers, Education Travelers, Backpacker & Adventure Travelers), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027

Industry Trends

Travel Insurance Market size exceeded USD 15 billion in 2020 and is projected to grow at over 11% CAGR from 2021 to 2027. The growing number of international tourists demanding financial protection while travelling is likely to fuel the industry growth. The rising demand for reimbursement of expenditures incurred due to misplaced belongings, trip cancellations, and medical problems will propel the market revenue. The expenses of such incidents are significant when travelling abroad, and travel insurance provides several compensation benefits that minimize the risks during travel.
 

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Supportive initiatives by governments will boost the business expansion. For instance, United Nations World Tourism Organization (UNWTO) and International Air Transport Association (IATA) have developed a dashboard on travel restrictions and health-related travel requirements. The aim is to support the recovery of tourism by providing real-time information and insights to the travelers.
 

The COVID-19 pandemic impeded growth of the travel insurance market in the first half of 2020 owing to strict lockdown measures enforced by the government. Travel and tourism are among the most affected industries due to the unprecedented global health, social, and economic emergency caused by the COVID-19 pandemic. The number of domestic and international tourists significantly decreased in 2020. The market gained traction in the second half of 2020 after the gradual relaxation of the lockdowns imposed. In the coming years, there will be a rise in the number of travelers because various industry participants offer coverage for medical expenses related to COVID–19.
 

Expanding demand for domestic travel in the U.S.

The U.S. domestic travel insurance market is forecast to register growth rate of around 8% through 2027 on account of increasing number of travelers choosing a yearly travel insurance package to avoid the inconvenience of purchasing insurance for each trip. The market will witness significant growth impelled by the relaxation of government lockdown and travel regulations. The domestic travel insurance plan offers extensive coverage for people travelling within the country. In order to make trips hassle-free, domestic travel insurance plans are specifically designed for different cities and destinations across the U.S. Increasing spending on travel protection plans helps the domestic market to grow as its coverage offers complete compensation in unexpected events.
 

Travel insurance companies offering customized plans to increase customer base

The travel insurance industry is poised to observe considerable development, with an increase in the number of insurance companies offering inexpensive and attractive plans. These companies provide appealing packages that are tailored to a range of travel categories. For instance, Chubb Limited offers Passport 360 travel insurance that offers optional upgrades including Golf package. This package covers recreational equipment delay and recreational vehicle damage. Companies are also focusing on plans introduced to offer various additional benefits including online healthcare consultation service and Wi-Fi rental service.
 

Robust automotive market in Germany to augment the multiple trip travel insurance demand

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The Germany multiple trip travel insurance market is anticipated to see 9% gains through 2027 fueled by the strong automotive sector. Market players are expanding in this country, leading to a rise in the number of business trips. Multiple trip insurance eliminates the hassle of buying a new plan for every trip, acting as a one-time comprehensive solution. These insurance plans offer easy renewability, financial support, and clearance of documents. Industry participants including American Express Company and Allianz Partners are offering multi-trip insurance policies for frequent travelers to gain a higher market share.
 

Corporate travelers undertaking regular business trips helps in market development

Various organizations are buying travel insurance to provide insurance coverage to their employees who travel overseas for business purposes. Globally, business travel recovery is occurring in stages as people are currently getting vaccinated and government travel restrictions are relaxed. Corporate travelers are becoming comfortable returning to their normal work lives, which is helping the market growth. According to the Global Business Travel Association, the rising annual spending in the travel industry is expected to be slow in 2023 and 2024 and remain above the historical average rate, with annual business travel spending crossing USD 1.4 trillion by 2024.
 

Supportive government initiatives spurring tourism in Asia Pacific

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In 2020, the Asia Pacific travel insurance market accounted for about 25% of the revenue share impelled by increasing government investments in tourism projects. The government intends to develop measures for a full-fledged inbound recovery while boosting travel demand, depending on the situation with the coronavirus and the recovery of the travel industry. For instance, in July 2020, the Ministry of Internal Affairs and Communications, Japan, allocated USD 36.35 million for Digital Transformation (DX) in local governments in its FY 2021-22 budget. The aim is to attract visitors to Japan and promote tourism through DX, increase the productivity & sustainability of regions, and create an internationally competitive tourism sector.
 

Focus on launching new insurance plans forms a key strategy amongst

The key players operating in the travel insurance market include Allianz Partners, American Express Company, American International Group, Inc. (AIS), Arch Capital Group Limited, Aviva PLC, AXA Travel Insurance, Berkshire Hathaway Specialty Insurance, China Pacific Insurance, (Group) Co., Ltd., Chubb Limited, Generali Group, Groupama Sigorta AS, HanseMerkur Reiseversicherung AG, InsureandGo, Ping An Insurance Company of China, Ltd., Seven Corners, Inc., Sompo Holdings, Inc., Travelex Insurance Services Inc., and Zurich Insurance Group AG.
 

Industry participants are focusing on expanding their global footprint by introducing new insurance policies to their product portfolio. The travel industry is witnessing a surge in international trips that will help companies to introduce tailored travel insurance policies.
 

This market research report on travel insurance includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2017 to 2027 for the following segments:

Market, By Type

• Domestic
• International

Market, By Trip

• Single
• Multiple
• Extended

Market, By Provider

• Insurance company
• Banks
• Others

Market, By End-use

• Senior Citizens
• Corporate Travelers
• Family Travelers
• Education Travelers
• Backpacker & Adventure Travelers
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa