The global travel insurance market is projected to reach a value of USD 55.21 billion by 2028, growing at a CAGR of 16.5% from 2020 to 2028. This information comes from a new research report titled “Travel Insurance Market” published by Zion Market Research.
Travel insurance is a form of insurance that provides coverage to travelers against unforeseen events and emergencies that may occur during their trips. It offers protection against risks such as trip cancellations, medical emergencies, lost luggage, and travel delays. The coverage and cost of travel insurance policies vary based on factors such as destination, travel duration, age of travelers, and specific plan.
The increasing global tourism and rise in disposable income have contributed to the growth of the travel insurance market. Travelers opt for travel insurance to mitigate financial risks and ensure assistance and support in case of unexpected circumstances during their journeys. Furthermore, advancements in technology, such as geo-location, artificial intelligence, blockchain, and big data, have opened up opportunities for insurers in the market. These technological developments enable travel insurance platforms to provide seamless coverage at the point of purchase and create personalized experiences for customers.
The market is segmented based on insurance cover, end users, and distribution channels. The insurance cover segment includes single trip travel insurance, annual trip travel insurance, and long trip travel insurance. Single trip insurance is popular among travelers who don’t make multiple trips per year. It offers features such as medical cover, repatriation, emergency dental treatment costs, loss of baggage, personal liability cover, trip interruption or cancellation, fire cover, and missed flight connection.
The end users of travel insurance are business travelers, senior citizens, education travelers, and others. Business travelers constitute a significant portion of the market demand due to their frequent trips for work-related purposes. They rely on travel insurance to protect themselves against various risks.
The distribution channel analysis reveals that insurance companies are the preferred choice for travelers when it comes to purchasing travel insurance. Insurance companies offer guidance to customers regarding the right insurance packages based on their travel needs. They act as trusted sources for distributing travel insurance packages, ensuring customers receive authorized and suitable coverage options.
In terms of regional analysis, North America held the largest market share of 37% in 2020. Factors contributing to this include a low dependency ratio, increased disposable income, and higher travel rates among the baby boomer generation. The digitalization of distribution channels has also led to higher demand for travel insurance packages. Asia-Pacific is expected to witness substantial growth in the market, driven by the increasing demand for corporate travel insurance in countries such as China, Japan, and Korea. The rising number of outbound travelers and growing awareness about the benefits of travel insurance are driving market growth in this region.
Key players in the global travel insurance market include American Express Company, Allianz Partners, American International Group Inc. (AIS), AXA Travel Insurance, and Arch Capital Group Limited, among others.
Overall, the travel insurance market is experiencing significant growth due to factors such as increased tourism, rising disposable income, and advancements in technology. As individuals become more aware of the financial risks associated with travel, the demand for travel insurance is expected to continue rising.