Travel Insurance Market size is set to reach USD 35 billion by 2027, according to a new research report by Global Market Insights Inc.
Various countries including the UAE, Japan, Singapore, Brazil, Mexico, and Russia have added travel health insurance as part of their visa requirements, significantly propelling the travel insurance industry growth. Some international destinations now require travelers to have travel medical insurance that covers COVID-19. For instance, as of January 2021, all visitors to Singapore are required to have travel insurance with coverage for COVID-19-related medical treatment and hospitalization.
The COVID-19 pandemic impacted the travel insurance market in the first half of 2020 due to declining business conditions, following stringent lockdown measures imposed by government organizations. In 2020, the demand for travel insurance decreased owing to the fear of the virus and severe travel restrictions, greatly reducing the need for travel services throughout the world. The industry is expected to recover in the coming years after the introduction of customized travel insurance policies. Increased awareness of travel insurance among individuals, additional benefits of insurance coverage, and the reopening of tourist places are poised to provide various market opportunities.
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Increasing number of international tourists undertaking travel insurance
The improving global economic conditions have resulted in the robust growth of the travel insurance market over recent years. Government organizations are supporting the tourism sector to satisfy the demand for a rising number of international tourists. This encourages travelers to adopt affordable travel insurance plans to ensure financial security after the international borders open, post the decline of the COVID-19 pandemic.
Rising demand for single trip travel insurance from senior citizens
The single trip travel insurance market is poised to witness significant growth through 2027 led by the surge in the number of senior citizens travelling occasionally for vacation. It is cost-effective as one needs to pay only for the exact length of the trip. Single trip travel insurance provides coverage in various situations, including cancellation of trip and cover of disruption, passport loss, loss of luggage, personal items, documentation of travel, medical charges for emergency & accident hospitalization, cash support for robbery, and home burglary protection. As senior citizens do not travel internationally frequently over the year, single trip travel insurance provides them with various health and financial benefits.
Browse key industry insights spread across 290 pages with 235 market data tables and 40 figures & charts from the report, “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” in detail along with the table of contents:
Banks offering attractive travel insurance packages to spur the travel insurance market demand
Banks are offering travel insurance as a part of their general insurance policies to achieve product differentiation from their competitors and improve customer relationships. The increasing competition in the financial industry is encouraging banks to offer advanced & intelligent services to create new market avenues. Banks are selling insurance products to expand their customer base in the market without paying commissions to insurance agents or brokers. Market players offer family floater option that can be extended to the traveler’s family including spouse and to a maximum of two dependent children.
Growing number of family travelers spending quality time travelling together
The expanding range of family tour packages is likely to drive the demand for travel insurance. Companies are offering compensation to an individual who signs up for a family member with the same travel itinerary. The insurance premium is comparatively lower than the individual insurance plan. The players are offering a single insurance plan that secures all the family members from possible uncertainties and risks that may occur during the travel period.
Rise in the number of students pursuing higher education in Europe
The growing number of students studying in Europe is accelerating the travel insurance market revenue. The travel insurance providers offer attractive plan to the students. For instance, the insurance period can be set freely according to the study abroad period. The insurance providers support long-term study abroad programs with assistance center that introduces students to a hospital near the university.
Companies are focusing on strategic partnership to offer affordable travel insurance policies
The industry participants are focusing on undertaking strategic partnerships to sustain the increasing competition. For instance, in October 2021, Allianz Partners announced a strategic partnership with Jettzy, an Online Travel Agent (OTA). Jettzy is a flight booking engine that monitors all major airlines to assist clients find, compare, and book the best deals on domestic and international flights. Allianz Partners' travel insurance will be incorporated into Jettzy's online booking system, making it simple for clients to add insurance to their trip.
The prominent travel insurance market players 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.