Global Travel Insurance Market Size, Share & Industry Trends Analysis Report By Coverage Type (Annual Multi-Trip, and Single-Trip), By Distribution Channel, By End User, By Regional Outlook and Forecast, 2021 - 2027

Global Travel Insurance Market Size, Share & Industry Trends Analysis Report By Coverage Type (Annual Multi-Trip, and Single-Trip), By Distribution Channel, By End User, By Regional Outlook and Forecast, 2021 - 2027

The Global Travel Insurance Market size is expected to reach $60.7 billion by 2027, rising at a market growth of 28.2% CAGR during the forecast period.

Travel insurance gives financial protection for expenses or losses caused as a result of unforeseen circumstances while traveling domestically or internationally. It usually includes the cost of stolen or lost items, emergency medical treatment, unexpected death, and travel cancellation and stoppage. It kicks in on the day of travel and lasts till the insured returns home. Several firms now offer travel insurance with emergency services like cash wire help, replacing lost passports, and re-booking cancelled flights that are available 24 hours a day, seven days a week. They also provide customization options based on geographic area and the needs of covered persons.

Travel insurance is structured to give protection against potential hazards and financial losses while customer is on the road. The dangers range from simple annoyances like missed flight connections & delayed luggage to more significant problems like injuries or serious sickness. Travel insurance can protect them from medical bills incurred while traveling that are not covered by their regular health insurance. Often these health insurance policies do not give full coverage in overseas nations, and some plans, including Medicare, do not provide any coverage at all. Travel insurance can help supplement medical costs if any insurer get injured or sick before or during their holiday, in addition to their regular health insurance.

Loss or theft of luggage can result in costly charges, which can be covered by travel insurance. This is especially beneficial if an airline loses insurers’ luggage, as getting them to pay for lost items can be tough. In the United States, the Department of Transportation (DOT) mandates that airlines pay passengers for missing baggage up to certain amount. In other countries, the maximum sum is less than what is paid in in The United States. Passengers must show documentation that proves the value of the missing luggage and its contents to obtain the maximum amounts. Furthermore, several airlines companies require a claim to be made within 21 days.

COVID-19 Impact

The COVID-19 pandemic brought the world to a halt, with unforeseeable and unexpected implications affecting global economies, people's lives, communities, and livelihoods too, and the risk of layoffs and global recession was at an all-time high. Additionally, the travel and tourist industry has endured severe economic slowdowns as a result of harsh travel restrictions and quarantine regulations around the world. As per a report published by the World Tourism Organization (UNWTO) in January 2021, international visitors in 2020 fell dramatically from the previous year of 2019. The worldwide travel insurance market was affected by such causes.

The tourism and hotel industries, on the other hand, are expected to recoup clients quickly once travel restrictions are eased. More than half of Americans said they planned to travel soon, as per a study done by Morning Consult and commissioned by the American Hotel & Lodging Association (AHLA) in February 2021.

Market Growth Factors

Expansion of the Tourism industry

In the last decade, the tourist industry across the world has seen consistent development. There are many countries in the world, which are becoming travel hub and gaining more popularity among millennials. Increased package holidays, disposable income, broad media coverage of various holiday types, and easy internet travel bookings have all contributed to the tourism industry's expansion. In addition, there are many students who are shifting to other countries for further studies and programs, along with that, several universities and colleges are also offering scholarship programs, which are attracting students from the world. As the tourist industry expands, more cases of crucial documents, lost luggage, natural disasters, and medical issues are reported.

Travel Rule and Regulations

In terms of VISA policy, each country has its unique set of rules and regulations for tourists of different nationalities. But, governments are increasingly requiring travelers to purchase travel insurance to receive a VISA. Travel health insurance is required to visit nations such as France, the United States, Luxembourg, Belgium, Finland, Norway, and Poland, among others. Because of the high medical expenditures and hospitalization fees in visiting countries, this provision exists to ensure that tourists are sufficiently covered in the event of medical crises. Travel health insurance makes sure that passengers are treated medically until they return home for additional treatment.

Market Restraining Factors

It Can Be Expensive

The cost of purchasing travel insurance is one of the primary disadvantages. Because a travel insurance plan covers so many things, it can be quite costly. However, because people may never use it, many individuals consider it a waste of money and time. There are many people who find that the peace of mind outweighs the cost. Furthermore, without insurance, people may be forced to pay a large sum of money for unforeseen expenses such as medical treatment for illnesses and injuries. Most travel insurance policies only cover unexpected medical expenditures incurred during the trip and do not cover the pre-existing medical conditions. Those that do usually come with a significant price rise.

Coverage Type Outlook

Based on Coverage Type, the market is segmented into Annual Multi-Trip, and Single-Trip. Single-Trip segment procured a significant revenue share in the travel insurance market in 2020. Single-trip travel insurance is used when someone leave their house, go on a trip, and then return home, and thus require coverage for the entire trip. Individuals can visit numerous destinations or countries while on their trip, and it will still be regarded a single trip while anyone are away from home. The trend of travel blogging and the rising craze among millennials and gen Z about travelling abroad would further surge the growth of the segment.

Distribution Channel Outlook

Based on Distribution Channel, the market is segmented into Insurance Intermediaries, Insurance Companies, Banks, Insurance Brokers, and Insurance Aggregators. The Insurance Broker segment recorded a substantial revenue share in the travel insurance market in 2020. An insurance broker operates as a go-between for people and the insurance company. They can locate the coverage that best meets customers’ demands at a fair price using both their background and their insurance expertise. Brokers can save customers’ money and time, but they might charge a fee for the services they provide.

End User Outlook

Based on End User, the market is segmented into Family Travelers, Business Travelers, Senior Citizens, Education Travelers, and Others. The Family Travellers segment acquired the highest revenue share in the travel insurance market in 2020. This is because family travellers have several members of various age groups, which necessitates more risk mitigation and planning, resulting in higher adoption of travel insurance among family travellers.

Regional Outlook

Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. Europe emerged as the leading region in the travel insurance market with the maximum revenue share in 2020. It is due to expanding tourism trends in the European region, as well as the region's health safety and hygiene demands, which are boosting the industry's expansion. Along with that, the prevalence of various heritage sites, big universities and companies are also contributing to the growth of the regional travel insurance market.

The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; American International Group, Inc., Allianz Group and Zurich Insurance Group Ltd. are the forerunners in the Travel Insurance Market. Companies such as AXA SA and Assicurazioni Generali SpA are some of the key innovators in the Market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Seven Corners, Inc., USI Insurance Services, LLC, Assicurazioni Generali SpA, American International Group, Inc., Allianz Group, AXA SA, and Zurich Insurance Group Ltd.

Recent strategies deployed in Travel Insurance Market

Partnerships, Collaborations and Agreements:

Feb-2022: Allianz came into a partnership with Vistara, is an Indian full-service airline. Through this partnership, the companies aimed to provide optional travel insurance to deliver security in multiple cases such as important travel delays, medical emergencies, missed connections, baggage issues, trip cancellations as well as defined interference, and many more.

Feb-2022: Zurich Canada teamed up with Blink Parametric, a CPP Group’s parametric platform. This collaboration aimed to deliver flight interruption cover to Zurich Canada shareholders. Additionally, Blink parametric service along with Zurich Canadawhich signifies travel insurance is becoming applicable and necessary for passengers.

Jan-2022: Allianz Partners joined hands with Singapore Airlines, a global provider of insurance products and services. Through this collaboration, Singapore Airlines would help Allianz to strengthen its standing in the rapidly increasing Asia Pacific market. Additionally, this collaboration aimed to provide appreciative protection products as well as travel insurance provided globally due to the increasing number of passengers on Singapore Airlines every year.

Dec-2021: Allianz Global came into a partnership with Porter Airlines, a regional airline. Through this partnership, the companies aimed to introduced Emergency Travel Medical Insurance, All-Inclusive Insurance, and Trip Cancellation Insurance. Additionally, Porter consumers have entry to Allianz urgent assistance, affirm inquiry, and expert support with the help of pre-trip planning.

Nov-2021: AIG Canada came into a partnership with Goose Insurance Services, an innovative insurance technology enterprise. This partnership aimed to provide AIG products through the Goose Insurance Super-App. Additionally, Canadian residents can buy AIG Canada’s products for under a minute.

Nov-2021: Zurich signed an agreement with AllClear along with InsureandGo, a travel insurance specialist. Through this agreement, Zurich would capitalize AllClear and InsureandGo travel items, as well as its partner brands.

Oct-2021: AXA Partners extended its partnership with True Traveller, an online travel insurance specialist. This partnership aimed to deliver travel insurance across the UK and European consumers as well as to achieve peace of mind through consumer through experience.

Jul-2021: AXA signed an agreement with Club Med, French travel and tourism operator. This partnership aimed to allow consumers to enjoy vacation trips, safe and securely realizing access to travel assistance and insurance coverage if required.

May-2021: AXA came into a partnership with Illusions, a global technology company. Through this partnership, AXA would allow illusions to implant travel insurance products within its platforms and ease its consumers to expand its service suite and deliver further convenience, safety, and assurance to passengers across the world.

Mar-2021: AXA’s global Business-to-Business-to-Consumer unit AXA Partners extended its partnership with Ancileo, software as a service provider for the insurance. This partnership aimed to strengthen the AXA dominating insurance brand with the agility of a digital player, enabling it to fulfill partners’ growing assumption in a post-Covid world regarding end-to-end digital combination and flexibility of the consumer travel.

Jan-2021: Allianz Partners came into a partnership with SmartNomad, a digital travel concierge. Through this partnership, Allianz Travel Insurance would provide SmartNomad consumers the assurance of travel payment is secured if any casualty occurs to cancel a trip can be covered in the policy.

Jan-2021: Allianz Partners formed a partnership with Irish insurtech Blink, the world's leading InsurTechs. Through this partnership, the companies focused on providing cutting-edge solutions to enhance the travel insurance experience for consumers.

May-2020: AXA formed a partnership with Accor, a global hospitality leader. This partnership aimed to deliver 5000 Accor hotels medical support to guests across the world. Additionally, this partnership would allow Accor clients to be an asset from the superior level of care.

Product Launches and Product Expansions:

Sep-2021: Generali Global Assistance introduced a virtual Travel Insurance Assistant, simplifying the consumer journey and improving the experience. Through this launch, Smart Automation Initiative progress allows digital up-gradation of GGA to enable for more smooth enterprise operations as well as enhanced consumer experience.

Mar-2021: Allianz Partner expanded its epidemic coverage to its travel insurance portfolio. This insurance focused on consumers traveled through Allianz would be focused if they fell ill with COVID-19 or another epidemic would be quarantined as well as to oppose to board due to illness. Additionally, Allianz insurance would facilitate hotels for passengers to stay in quarantine.

Dec-2020: AXA Insurance introduced AXA SmartTraveller, an improved travel insurance offering with COVID-19 cover. Through this launch, the company aimed to provide insurance scope for some scenarios removed from travel insurance plans since the announcement of COVID-19 as a global epidemic.

Oct-2020: Zurich Insurance Group expanded its geographical footprints by establishing business travel products and services. This expansion includes wide insurance coverage, a bigger international servicing network, and new abilities to support passengers and threat supervisors through technology.

Acquisitions and Mergers:

Nov-2021: Zurich signed an agreement to acquire Special Insurance Services, a Texas-based program manager. This acquisition aimed to expand ZAIC's complemental health insurance solutions that would help enterprises and individuals better handle medical prices.

Oct-2021: Allianz completed the acquisition of Aviva Italia S.p.A., the Italian property & casualty insurance entity of the Aviva Group. This acquisition aimed to empower Allianz S.p.A.’s 3rd rank in the Italian P&C insurance industry, growing the enterprise stock share by at least one percent.

Jul-2021: Allianz Australia took over Westpac, a general insurance business. Through this acquisition, Allianz would expand Allianz’s product offering of personal insurance products such as content and home, within Westpac Group’s label.

May-2021: Allianz completed the acquisition of Jubilee, a general Insurance enterprise. Through this acquisition, Jubilee insurance’s in-depth regional knowledge, large networks, and brand recognization along with the global expertise and abilities of the Allianz Group aimed to expand and widespread the insurance markets over East Africa.

Scope of the Study

Market Segments covered in the Report:

By Coverage Type

• Annual Multi-Trip
• Single-Trip

By Distribution Channel

• Insurance Intermediaries
• Insurance Companies
• Banks
• Insurance Brokers
• Insurance Aggregators

By End User

• Family Travelers
• Business Travelers
• Senior Citizens
• Education Travelers
• Others

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

Companies Profiled

• Seven Corners, Inc.
• USI Insurance Services, LLC
• Assicurazioni Generali SpA
• American International Group, Inc.
• Allianz Group
• AXA SA
• Zurich Insurance Group Ltd.

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