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), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027

Published Date: Jan 2021  |  Report ID: GMI4908  |  Authors: Preeti Wadhwani, Saloni Gankar

Report Format: PDF   |   Pages: 300   |   Base Year: 2020




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Travel Insurance Market size exceeded USD 20 billion in 2020 and is poised to grow at 12.5% CAGR between 2021 and 2027. The market growth can be attributed to the high demand for travel insurance from international tourists.
 

Travel Insurance Market

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There has been a sharp rise in international tourism over the recent years, boosting the demand for travel insurance for financial protection. According to the World Tourism Organization, international tourist arrivals increased 4% from January to June 2019. The travel insurance market has gained traction due to the increasing demand for recovering expenses for lost possessions, trip cancellations or medical emergencies. As the costs incurred in such events are high during foreign trips, travel insurance offers several reimbursement benefits. The policy ensures enhanced financial protection for overseas travelers and coverage against several travel-related risks.
 

The ongoing coronavirus (COVID-19) pandemic negatively impacted the travel insurance market in 2020. As several government organizations imposed stringent restrictions on travel, the tourism market witnessed a temporary downfall. There was a significant decline in the number of domestic as well as international tourists. The pandemic caused a significant decline in international travel in 2020, hampering the market growth adversely. However, with gradual relaxations on the lockdowns imposed, there will be a rise in the number of travelers in 2021 and 2022.
 

International tourists undertaking travel insurance for travelling abroad

Japan Travel Insurance Market By Type

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The Asia Pacific travel insurance market is anticipated to expand at 16% CAGR during the forecast timespan. The growth can be attributed to the growing tourism sector in the region attracting several international tourists. For instance, the Japan Tourism Agency stated that around 32 million foreign tourists visited Japan in 2019, registering a 2.2% increase from 2018.
 

Several government organizations in Asia Pacific are supporting the tourism sector for overall economic growth. The rise in the number of foreign tourists will encourage travelers to adopt beneficial travel insurance plans to ensure financial security after the international borders open, post the decline of the COVID-19 pandemic.
 

Travel insurance companies offering attractive policies to strengthen customer base

The travel insurance market will witness significant growth through 2027, with the rise in the number of companies offering affordable and favorable policies for different traveler categories. These companies offer attractive packages customized for a range of travel types. For instance, Berkshire Hathaway Specialty Insurance Company offers a plan developed specifically for road trips.
 

Companies are also focusing on plans introduced specifically to cater to the requirements of senior citizens. Bharti AXA focuses on offering different plans depending on the destination and type of traveler. The rise in the number corporate as well as family travelers will encourage these companies to offer customized packages.
 

Demand for single trip travel insurance from students pursuing higher education in foreign countries

Germany Travel Insurance Market Size

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The Germany single trip travel insurance market is projected to register growth of 11% till 2027 owing to rise in the number of students undertaking education in foreign countries over the recent years. According to Studying-in-Germany.org, the number of international students in Germany have increased by around 31% from 2014 to 2019. In 2019, around 39,871 Chinese students were registered in German universities. As these students usually do not undertake frequent international trips during the year, a single trip travel insurance offers them several benefits.
 

High travel insurance demand from corporate travelers undertaking business trips frequently

In 2020, the global corporate travel insurance market generated over 30% of the revenue share, as increasing number of businesses expand their presence internationally. As large organizations have their sales offices distributed globally, several corporate employees undertake international trips frequently.
 

According to the Global Business Travel Association, the business travel market is projected to reach USD 1.7 trillion by 2022. In response to the rise in the number of professionals visiting foreign countries for business trips, several insurance companies are offering plans developed specifically for the corporate sector.
 

Robust tourism sector in Latin America to offer strong growth opportunities to the market

Latin America Travel Insurance Market Share

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Latin America travel insurance market is predicted to witness 14% growth rate from 2021 to 2027 due to the rise in the number of international tourists visiting the country. The World Travel and Tourism Council estimates that the travel and tourism industry accounts for 10.2% of GDP in the Latin America and Caribbean region.
 

However, due to the coronavirus pandemic, the region witnessed a significant dip in the travel industry. Government organizations in the region are boosting the tourism sector to ensure robust economic growth. The improved economic conditions in countries, such as Mexico and Brazil, have boosted the number of international travelers over the recent years. The developing tourism sector will encourage travelers to buy suitable travel insurance plans.
 

Focus on introducing customized and affordable plans forms a key trend among market players

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.
 

The travel insurance industry players are offering attractive packages that cater to the specific demands of different consumers. They are focusing on understanding the requirements of varied types of travelers to offer suitable plans. For instance, ICICI Bank offers approved travel insurance packages that are custom-made to suit Europe Schengen Visa requirements. The companies are also offering plans developed specifically for different categories of travelers such as adventure travelers, family travelers, and senior citizens.
 

This travel insurance market research report 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
    • Saudi Arabia
    • UAE
    • South Africa
       

Frequently Asked Questions (FAQ) :

The market size for travel insurance exceeded USD 20 billion in 2020 and is poised to grow at 12.5% CAGR between 2021 and 2027.
According to the analysts at Global Market Insights Inc., the APAC industry is anticipated to expand at 16% CAGR during the forecast timespan.
Key players operating in the 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.
In 2020, the global corporate travelers generated over 30% of the market revenue share, as increasing number of businesses expand their presence internationally.
The Germany single trip travel insurance segment is projected to register growth of 11% till 2027 owing to rise in the number of students undertaking education in foreign countries over the recent years.

Premium Report Details

  • Published Date: Jan 2021
  • Pages: 300
  • Tables: 272
  • Charts / Figures: 28
  • Companies covered: 20
  • Countries covered: 18

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