The Global Travel Insurance Market was valued at USD 22.7 Bn in 2020 is expected to reach USD 70.4 Bn by 2027, with a growing CAGR of 17.5% during the forecast period.
The increasing tourist population due to growing disposable income, extensive coverage for holidays, and easy online travel booking options have attributed to the growth in the tourism sector. With the growth in tourism, numerous incidences consisting of canceled flights, accidents, health issues, robbery or loss of baggage, natural calamities, and others such occurrences of uncertainties throughout the journey. To mitigate the risks related to such incidences, customers are choosing tour insurance. Therefore, the increase of the tourism industry is appearing as a main driver for the travel insurance market.
An increase in technological developments which includes geo-location, Application Program Interface (API), Artificial Intelligence (AI), data analytics, blockchain, and big data are offering revolutionary possibilities for insurers in the market. With these technological developments, travel insurance distribution systems are predicted to decorate productiveness for offering insurance seamlessly on the point of purchase. Moreover, digital transformation allows travel insurance organizations to create tremendously customized user experiences for their customers.
Based on end user, the business travelers segment is growing at the highest CAGR during the forecast period. The growth in this segment is attributed to the expanded foreign trade, overseas business growth, and a rise in business travel spending. Tourism growth is one of the major factor that propels the development of the global travel insurance industry. For instance, according to the secondary resources, the business travel spending is amounted to USD 1.29 trillion in 2019.
Mandatory rules & regulations imposed by the government have urged the consumers to avail travel insurance as a prerequisite for acquiring VISA, which is anticipated to drive the growth of travel insurance market. Moreover, the increase in baby boomer travel further accelerated the growth of the travel insurance industry during the forecast period. For instance, according to the Condor Ferries ltd statistics, 2020-21, over 94% of baby boomers are expected to take a minimum of one domestic trip in 2019, with the average number of anticipated trips being 3-4.
The decline in international travel activities due to COVID-19 pandemic is hinder the growth of the market. In addition, the technological advancements including Geo-location, Global Positioning System (GPS), and Application Program Interface (API) is one of the significant opportunities for the development of the market. However, lack of consumer experiences in terms of its coverages and premium rates is the major challenge for the global travel insurance industry.
Global Travel Insurance Market by Region Outlook (Revenue, USD Billion, 2021-2027):
In terms of geography, Asia-Pacific dominated the travel insurance industry in 2019 and is expected to show its dominance during the forecast period. The growth in the region is attributed to the increasing number of senior citizens in the countries such as Austraila, Japan, China and India. Moreover, the rising tourism sector in the region is the significant factor influencing the growth of the market to a great extent. For instance, according to the report published by Japan Tourism Agency in 2019, it is stated that around 32 Mn foreign tourists visited Japan in 2019, which showing 2.2% increase in tourists visitors as compared to the year 2018.
The Global Travel Insurance Market Segmentation:
Global Travel Insurance Market by Insurance Cover Outlook (Revenue, USD Billion, 2021-2027)
Global Travel Insurance Market by Distribution Channel Outlook (Revenue, USD Billion, 2021-2027)
Global Travel Insurance Market by End User Outlook (Revenue, USD Billion, 2021-2027)
Key Findings:
The key players operating in the travel insurance market are:
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