Travel Insurance Market Overview:
The Global Travel Insurance Market was valued at USD 22.7 Bn in 2020 and is expected to reach USD 70.4 Bn by 2027, with a growing CAGR of 17.5% during the forecast period.
Travel insurance is a form of insurance that covers the expenses and losses related to travelling. It is beneficial protection for the ones traveling locally or abroad. 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.
In addition to this, 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.
By Insurance Cover
By Distribution Channel
By End User
By Region
Based on insurance cover, the single-trip travel insurance segment dominated the market and is expected to show their dominance during the forecast period owing to their services such as trip cancellation, luggage loss, and others
Based on insurance cover, the market is segmented into single-trip travel insurance, annual multi-trip travel insurance, and long-stay travel insurance. The singal-trip travel insurance dominated the market and is expected to show their dominant position during the forecast period. The growth in the segment is attributed to the various type of offers provided in this insurance coverage including trip cancellation, accident and sickness, emergency repatriation, municipal responsibility, luggage loss, and others.
Based on distribution channel, the insurance intermediaries segment led the travel insurance industry and is expected to continue this pattern during the forecast period due to the various type of services provided by them
Based on distribution channel, the global travel insurance industry can be segmented as insurance intermediaries, insurance companies, banks, insurance brokers, and insurance aggregators. The insurance intermediaries segment led the market in 2019 and is expected to show its dominance during the forecast period, owing to the fact that intermediaries directly work with a variety of hotel chains and flight operators to provide quality consumer services in the market.
Based on end user, the business travelers segment is growing at the highest CAGR during the forecast period due to rise in business travel spending
Based on end user, the travel insurance industry segmented into senior citizens, education travelers, business travelers, family travelers, and others. 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.
Based on Region, Asia-Pacific dominate the market and is expected to show its dominance during the forecast period owing to the increased government regulation towards mandatory travel insurance policies
Based on Region, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. On the basis of regional analysis, 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 2018. Furthermore, the governments of many countries, including Japan, Malaysia, Australia, and Thailand, are focused on developing regulations that include Travel Insurance for all foreign passengers, resulting in a new travel insurance industry trend in the region, which proliferated the market growth to a great extent.
The report also provides an in-depth analysis of travel insurance market dynamics such as drivers, restraints, opportunities, and challenges:
Drivers
Restraints
Opportunities
Challenges
COVID-19 Impact on the Travel Insurance Market Analysis
The COVID-19 pandemic negatively impacted the travel insurance market. The government across the globe imposed strict lockdown to limit the spread of COVID-19 pandemic. Due to the pandemic the government bodies imposing tight travels controls by which the number of domestic and foreign visitors has decreased significantly. The tourism sector experienced a major downturn in 2020. For instance, according to the World Tourism Organization report published in 2021, it is estimated that around 65% drop in international tourists arrival in 2020. However, with incremental relaxations of the enforced lockdowns, the number of travelers will boom in 2021 and 2022, helping the growth of the market.
Note: A more detailed analysis specific to this industry will be provided in the report.
The report also provides an in-depth analysis of key trends in the Travel Insurance market:
The report also provides an in-depth analysis of recent news developments and investments:
The unique insights provided by this report also include the following:
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Market Introduction
Research Methodology
Executive Summary
Premium Insights
Market Overview & Competitive Landscape
Market Segmentation (Market Size and Share Analysis)
Market Dynamics
COVID – 19 Opportunity Mapping
Regional Market Analysis
Company Profiles
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