Travel Insurance Market Size - By Type (Domestic, International), Trip (Single, Multiple, Extended), End-Use (Senior Citizens, Corporate Travellers, Family Travellers, Education Travellers, Backpacker & Adventure Travellers), Provider & Forecast, 2023 - 2032

Travel Insurance Market Size - By Type (Domestic, International), Trip (Single, Multiple, Extended), End-Use (Senior Citizens, Corporate Travellers, Family Travellers, Education Travellers, Backpacker & Adventure Travellers), Provider & Forecast, 2023 - 2032

Travel Insurance Market Size

Travel Insurance Market size was valued at USD 21 billion in 2022 and is estimated to register a CAGR of over 9.5% between 2023 and 2032. With the rise in global travel and the potential risks associated with it, there has been an increasing awareness among travelers about the importance of travel insurance. According to the World Travel & Tourism Council, while the sector's share of the overall economy increased from 5.3% in 2020 to 6.1% in 2021, travel & tourism's contribution to GDP witnessed 21.7% growth (USD 1 trillion) to reach USD 5.8 trillion in 2021. 18.2 million jobs, or an increase of 6.7%, were recovered in the sector as well.

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People are recognizing that unexpected events such as trip cancellations, medical emergencies, lost baggage, or flight delays can disrupt their travel plans and incur significant financial losses. This awareness has driven a growing demand for travel insurance as travelers seek to protect themselves from these risks, further contributing to the travel insurance market growth.

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The travel industry is sensitive to global events, such as natural disasters, political unrest, pandemics, and terrorist attacks. Such events can lead to travel disruptions, cancellations, or changes in plans. The uncertainty surrounding travel conditions and the possibility of sudden changes can make travelers hesitant to purchase travel insurance, as they may feel uncertain about whether their coverage will apply in specific situations. The COVID-19 pandemic, for instance, caused widespread travel restrictions and uncertainties, which significantly impacted the travel insurance market.

However, modern travelers are exploring a wide range of destinations and engaging in various activities, from adventure sports to international business trips. Each type of travel comes with its own set of risks and potential challenges. This diversity in travel experiences has led to the development of specialized travel insurance products tailored to different needs, such as adventure travel insurance, business travel insurance, and coverage for specific regions.

For instance, toto make getting travel protection for its customers easier, Malaysian airline MYAirline has chosen Zurich Malaysia as its official travel insurance provider. Zurich will now cover all current and upcoming routes for the Malaysian airliner as part of the new partnership.

Passengers on MYAirline can purchase the MYAirline Travel Insurance, formerly known as MY Travel Shield, to protect their journeys from inconveniences and accidents. Because it is integrated into the process of purchasing a plane ticket, opting for this protection is easy. This customization has expanded the market and attracted a broader range of customers seeking specific coverage for their unique travel plans, strengthening the travel insurance market outlook.

COVID-19 Impact

The advent of COVID-19 profoundly impacted the travel insurance landscape, ushering in a new era of uncertainty and recalibration. Widespread travel restrictions and lockdowns prompted a surge in trip cancellations, leading to heightened demand for cancellation and trip interruption coverage. Instances of travelers being stranded abroad due to border closures underscored the need for comprehensive emergency medical coverage, which prompted insurance providers to reassess their policies. Additionally, the pandemic spotlighted the importance of coverage for unforeseen events like epidemics, prompting potential shifts towards more inclusive policies addressing health crises.

Travel Insurance Market Trends

Travelers have diverse needs and preferences when it comes to insurance coverage. To cater to this, the travel insurance industry might witness a trend toward more flexible and customizable policies. This could involve insurance providers offering modular coverage options that allow travelers to select specific coverage elements based on their travel plans and preferences.

For example, a traveler could choose coverage for medical emergencies, trip cancellations, and specific activities (such as adventure sports) while excluding coverage for areas that don't apply to their trip. Customizable policies could help travelers find coverage that aligns more closely with their individual needs, potentially increasing the appeal of travel insurance.

To that end, in July 2021, a 2020-founded insurtech called Pattern Insurance Services and Setoo, a startup that assists travel agencies in selling unique and customized travel insurance products as upsells agreed to merge. The combined business will have its headquarters in Palo Alto, California, and operate as Pattern throughout the United States and Europe. The deal's details were kept between the two parties. Together, the startups have raised $25 million in grant from several investors, including Abstract Ventures, MS&AD Ventures, Comcast Ventures, Foundation Capital, FinTLV, Kamet Ventures, TechAviv Founder Partners, and Kli Capital.

Travel Insurance Market Analysis

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The travel insurance market from international segment reached USD 15 billion revenue in 2022 and is set to grow at over 10% CAGR during 2023 to 2032, due to the growing recognition of potential risks involved in global travel. Instances of travelers encountering medical emergencies abroad, unexpected trip cancellations, lost luggage, and natural disasters have highlighted the vulnerability of travelers.

The COVID-19 pandemic further emphasized the need for comprehensive coverage as travelers faced uncertainties such as flight disruptions and quarantine requirements. As people increasingly explore diverse destinations, international travel insurance offers a safety net, assuring travelers that they are financially protected against unforeseen challenges during their journeys.

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The insurance companies segment accounted for 55.86% of the travel insurance market share in 2022 and will cross USD 25 billion in 2032. Insurance companies are experiencing a surge in growth as prominent travel insurance providers and could capture a promising market share due to their capacity to adapt to evolving travel landscapes. With the rise of customized travel experiences, insurers are tailoring coverage to match specific activities and destinations.

For instance, offering policies catering to adventure sports enthusiasts or business travelers. Moreover, the COVID-19 pandemic showcased insurers' ability to develop policies addressing global health crises. This adaptability and responsiveness to changing travel trends positions insurance companies as essential partners in safeguarding travelers against an array of potential disruptions, fostering travel insurance market revenue.

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North America travel insurance market size held over USD 6 billion in 2022 and will observe around 9.5% CAGR through 2032, owing to increasing awareness and changing travel dynamics. As travelers become more conscious of potential risks, demand for coverage has surged. For example, the complexities brought by the COVID-19 pandemic prompted travelers to seek protection against unforeseen cancellations and medical emergencies. Additionally, the diverse range of travel options, from family vacations to adventure trips, has created a need for tailored insurance solutions, further driving the industry's expansion in the region.

Travel Insurance Market Share

Some of the major companies operating in the travel insurance market are

• Generali Group
• Ping An Insurance Company of China,Ltd
• Aviva PLC
• Allianz Partners
• ERGO Group AG
• American Express Company
• Arch Capital Group Limited
• China Pacific Insurance (Group) Co.Ltd
• American International Group, Inc. (AIG)
• AXA Travel Insurance
• Zurich Insurance Group AG

Travel Insurance Industry News

• In May 2022, Generali Group acquired a 25% stake in Future Generali India Insurance (FGII). This acquisition gives Generali Group a controlling stake in FGII, the 7th largest non-life insurer in India, helping Generali Group expand its presence in the Indian market and offer a wide range of travel insurance products to Indian travelers.

The travel insurance market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments

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Market, By Type

• Domestic
• International

Market, By Trip

• Single
• Multiple
• Extended

Market, By Provider

• Insurance companies
• Banks
• Others

Market, By End-Use

• Senior citizens
• Corporate travellers
• Family travellers
• Education travellers
• Backpacker & adventure travellers
• 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
  • South Africa
  • UAE
  • Saudi Arabia

Frequently Asked Questions (FAQ)

How big is the travel insurance market?

The market size of travel insurance reached USD 21 billion in 2022 and is set to witness 9.1% CAGR from 2023 to 2032, due to increasing awareness among travelers about the importance of travel insurance worldwide.

Why is the demand for international travel insurance growing?

The international segment was valued at over USD 15 billion revenue in 2022 and will grow at 10% CAGR during 2023 to 2032, on account of growing recognition of potential risks involved in global travel.

What factors are influencing the travel insurance industry growth in North America?

North America market size recorded over USD 6 billion in revenue in 2022 and is expected to garner over 9.5% CAGR till 2032, owing to the increasing awareness and changing travel dynamics in the region.

Who are the key travel insurance market players?

Generali Group, Ping An Insurance Company of China, Ltd, Aviva PLC, Allianz Partners, ERGO Group AG, American Express Company, Arch Capital Group Limited, and China Pacific Insurance (Group) Co., Ltd. are some of the major travel insurance companies worldwide.