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
Industry Trends
Travel Insurance Market size accounted over USD 20 billion in 2020 and is set to grow at 12.5% CAGR from 2021 to 2027. The market growth can be attributed to the high demand for travel insurance from international tourists.
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 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.
Get more details on this report - Request Free Sample PDF
The ongoing coronavirus (COVID-19) pandemic negatively impacted the travel insurance industry 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, in turn, boosting the market growth.
Report Coverage | Details | ||
---|---|---|---|
Base Year: | 2020 | Market Size in 2020: | 20 Billion (USD) |
Historical Data for: | 2017 to 2020 | Forecast Period: | 2021 to 2027 |
Forecast Period 2021 to 2027 CAGR: | 12.5% | 2027 Value Projection: | 45 Billion (USD) |
Pages: | 300 | Tables, Charts & Figures: | 300 |
Geographies covered (18): | U.S., Canada, UK, Germany, France, Italy, Spain, Russia, China, India, Japan, Australia, South Korea, Brazil, Mexico, Saudi Arabia, South Africa, UAE | ||
Segments covered: | Type, Trip, Provider, End-Use and Region | ||
Companies covered (20): | Allianz Partners, American Express Company, American International Group, Inc. (AIS), AXA Travel Insurance, Berkshire Hathaway Specialty Insurance, Chubb Limited, ERGO Group AG, Generali Group, Groupama Sigorta AS, HanseMerkur Reiseversicherung AG, Insure & Go Insurance Services Limited, MedJet, Nationwide Mutual Insurance Company, nib Travel Insurance Distribution Pty Limited, Ping An Insurance Company of China, Ltd., Seven Corners, Inc., Sompo Holdings, Inc., Tokio Marine HCC Medical Insurance Services Group, Travelex Insurance Services Inc., Zurich Insurance Group AG | ||
Growth Drivers: |
|
||
Pitfalls & Challenges: |
|
Get more details on this report - Request Free Sample PDF
International tourists undertaking travel insurance for travelling abroad
The Asia Pacific travel insurance market demand is anticipated to expand at more than 16% CAGR through 2027 driven by the growing tourism market in the region attracting several international tourists. For instance, in 2019, around 12 million individuals visited Taiwan, registering 7% growth compared to 2018 statistics. Similarly, 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 after the decline of the COVID-19 pandemic.
Travel insurance companies offering attractive policies to strengthen customer base
The travel insurance market will see high growth 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, which is fueling the market revenue.
Demand for single trip travel insurance from students pursuing higher education in foreign countries
Get more details on this report - Request Free Sample PDF
The Germany single trip travel insurance market is projected to grow at around 11% CAGR from 2021 to 2027 propelled by the 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. This will fuel the demand for travel protection policies undertaken by students for single trips. As these students usually do not undertake frequent international trips during the course of the year, a single trip travel insurance offers them several benefits.
High demand from corporate travelers undertaking business trips frequently
The market will observe high demand from corporate travelers, as increasing number of businesses increasing their presence internationally. In 2020, the global corporate travel insurance market generated over 30% of the revenue share. 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 expected to reach USD 1.7 trillion by 2022. The expanding corporate industry will offer growth opportunities for insurance companies. 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 market in Latin America to offer strong market growth opportunities
Get more details on this report - Request Free Sample PDF
Latin America travel insurance market is poised to register growth rate of above 14% through 2027, with 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. Furthermore, 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, propelling the market statistics.
Focus on introducing customized and affordable plans forms a key trend among market players
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. Companies are also offering plans developed specifically for different categories of travelers such as adventure travelers, family travelers, and senior citizens. Increasing competition among players to launch innovative plans will drive the market outlook.
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.
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
- Saudi Arabia
- UAE
- South Africa
Frequently Asked Questions (FAQ) :
Buy Now
Need a Discount? Get in touch with us for special pricing
Request DiscountConnect with our sales team
- Phone: 1-302-846-7766
- Toll Free: 1-888-689-0688
- Email: sales@gminsights.com
- Chat With Us: Click here to start
Premium Report Details
Get a report that explains COVID-19 impact on this market, request a free sample now
Benefits of Association
Data Coverage & Quality
GMI reports provide the most comprehensive coverage of any focus industry, ensuring a holistic and deep understanding of the market, along with actionable and granular data. We also take pride in our commitment to quality and strive to ensure that our clients get their moneys worth.
Client Trust & Security
GMI maintains strict code of conduct as a business and is committed to ensure that the privacy and trust of our clients are always maintained. As an organization, we also strive to be fully compliant with privacy laws, PCI and information security guidelines.
Customer Service
Our customers rely on us to produce accurate, reliable and timely information. Service orientation is a key mission for us as an organization; our process is guided by the desire to ensure that our clients are provided the best possible solutions in optimal timeframe. GMI stands by its commitment to service, providing timely assistance in both pre-sales and post-sales support for our clients.
GMIPulse, our report store
We have introduced ‘GMIPulse’, which is our report store; designed to offer clients a one-stop platform for all market research and business intelligence requirements. Clients can access reports, presentations, raw data excel sheets as well as detailed company profiles. GMIPulse allows you to track relevant industries and stay informed with latest innovation, competitive and regulatory developments to help design strategic framework.