Travel Insurance Market by Age (Millennials, Generation X, and Baby Boomers), by Income Level (Low-income travelers, Middle-income travelers and High-Income Travelers), by Coverage (Medical Coverage, Trip Cancellation Coverage, Baggage and Personal Belong

Travel Insurance Market by Age (Millennials, Generation X, and Baby Boomers), by Income Level (Low-income travelers, Middle-income travelers and High-Income Travelers), by Coverage (Medical Coverage, Trip Cancellation Coverage, Baggage and Personal Belongings Coverage, Accidental Death and Dismemberment (AD&D) Coverage), by Days of coverage (Short-Trip Insurance, Standard Trip Insurance, Extended Trip Insurance and Multi-Trip Insurance) by End User (Pilgrim Travelers, Education Travelers, Business Travelers and Family Travelers) by Distributional Channel (Insurance Companies, Banks, Airlines, Online Platforms, Insurance Aggregators & Comparison Websites, and Travel Agents & Tour Operators) – Global Opportunity Analysis and Industry Forecast, 2024–2030

The Travel Insurance Market size was valued at USD 21.85 billion in 2023 and is predicted to reach USD 58.40 billion by 2030, with a CAGR of 14.0% from 2024 to 2030.

The rising usage of online platforms as it offers ease, adaptability, and transparency, enabling travelers to assess different insurance options, and make well-informed choices boost the market growth. Additionally, the emergence of mobile applications dedicated to travel insurance has democratized access to coverage even further. This mobile accessibility streamlines the insurance acquisition process, making it swift, efficient, and user-friendly, thereby attracting new clientele and spurring the widespread adoption of insurance products.

The rise of online insurance platforms such as Squaremouth, TravelInsurance.com, and InsureMyTrip has transformed how travelers obtain and purchase insurance. By simplifying the insurance shopping experience, these platforms not only enhance customer convenience but also promote increased market penetration and engagement.

Moreover, the escalating volume of global travel serves as a pivotal driver behind the burgeoning growth of the travel insurance industry. With a growing number of individuals embarking on domestic and international journeys for diverse purposes such as leisure, business, and exploration, there is an increasing recognition of the necessity to safeguard these excursions against unforeseen circumstances. Travelers are becoming increasingly aware of the imperative to protect themselves against potential risks such as trip cancellations, medical emergencies, or lost luggage, resulting in a heightened demand for travel insurance.

For instance, the National Travel and Tourism Office (NTTO) and International Trade Administration (ITA) underscore a substantial uptick in international air passenger travel. For instance, data indicates that in March 2023, international air passenger travel surged to 19.687 million, marking a notable increase of 41.7% compared to March 2022. This upsurge in travel activity enlarges the customer base for travel insurance providers, thereby stimulating market expansion and presenting growth opportunities.

However, the regulatory challenges in the travel insurance market include diverse and complex regulations imposed by governmental authorities across county restrain the market growth. On the contrary, introduction of the blockchain technology offers a significant opportunity for enhancing transparency and security within the travel insurance industry. By leveraging decentralized digital ledgers, insurers can establish immutable records of transactions, policies, and claims, minimizing the risk of fraud and ensuring data integrity.

Segment Overview

The global travel insurance market is segmented on the basis of age, income level, coverage, days of coverage, end user, distributional channel and region.
 By age, the market is classified into millennials, generation x, and baby boomers.
 By income level, the market is segmented into low-income travelers, middle-income travelers and high-income travelers.
 By Coverage, the market is categorized into medical coverage, trip cancellation coverage, baggage and personal belongings coverage, accidental death and dismemberment (AD&D) coverage.
 By days of coverage, the market is classified into short-trip insurance, standard trip insurance, extended trip insurance and multi-trip insurance.
 By end user, the market is classified into pilgrim travelers, education travelers, business travelers and family travelers.
 By distribution channel, the market is segmented into insurance companies, banks, airlines, online platforms, insurance aggregators & comparison websites, and travel agents & tour operators
 Region-wise, the market is segmented into North America, Europe, Asia-Pacific, and the rest of the world (RoW).

Regional Analysis

North America holds the dominant share of the market

The North American region commands a 41.7% share of the global travel insurance market, driven by the increasing number of Americans traveling abroad for career opportunities. Data from The U.S. Department of Commerce highlights the U.S. as a frontrunner in North America for outbound travelers, with approximately 80.7 million recorded in 2022. Additionally, proactive measures taken by key industry players in the North American travel insurance market showcase a dynamic and progressive landscape, marked by innovation and adaptation to meet travelers' diverse needs globally.

For instance, in January 2024, AXA travel insurance partnered with Kiwi.com to provide comprehensive coverage for travelers, including medical expenses, assistance, lost baggage, liability, flight delays, and cancellations, ensuring a secure journey throughout their trip in the region. The insurance plans offered, such as Silver, Gold, and Platinum, cater to varying levels of coverage to accommodate different travel requirements.

Furthermore, the growing trend of Mexican nationals pursuing educational and academic opportunities abroad contributes to market expansion. Their increasing demand for travel insurance significantly boosts the sector in the region. Moreover, strategic collaborations within the industry play a pivotal role in the growth trajectory. In May 2023, Volaris, a budget-friendly Mexican airline, teamed up with Cover Genius to provide customers with comprehensive travel protection options. This partnership enables Volaris customers to access a range of coverage, including medical insurance, baggage protection, and flight cancellation insurance, at the time of booking flights. Such initiatives enhance the accessibility and awareness of travel insurance among Mexican travelers, ensuring a financially secure journey during their travels.

Key Market Players

The key players in the travel insurance market include companies such as:
• Allianz Group
• AXA SA
• Zurich Insurance Group Limited
• American International Group, Inc.
• Chubb Limited, Aviva PLC
• Nationwide
• Berkshire Hathaway Speciality Insurance
• Travel Insured International
• Generali Group
• Others.

Recent Developments

April 2023

Generali Group launched Generali Malaysia following the acquisition of a controlling majority in AXA Affin joint ventures in Malaysia and the complete purchase of MPI Generali Insurans. The integration under a single brand, Generali Malaysia, aims to enhance customer experience and provide comprehensive protection solutions across various insurance sectors such as travel, health, and motor.

March 2024

Zurich Insurance partnered with Klook, a travel and e-commerce company, to introduce a service called FlyEasy, aiming to ease the inconvenience of flight delays for travelers by providing free access to airport lounges globally when flights are delayed for over two hours.

January 2024

Aviva launched a comprehensive wellness package to enhance its group accident and travel insurance offerings, providing added value to customers. This includes mental health help, discounts on health products, support for cancer patients, and counselling. It's the first of its kind and aims to help employees with their mental health and overall wellness.

January 2024

Allianz Partners launched the Allyz mobile app, offering digital insurance, assistance, and travel-related services, offering customers a comprehensive suite of digital solutions for their insurance needs.

October 2023

Travel Insured International partnered with Robin Assist to enhance customer claims and emergency travel assistance services. This collaboration aims to provide travelers with streamlined claims processing and comprehensive emergency assistance, ensuring a seamless and worry-free travel experience.

KEY BENEFITS
• The travel insurance market report provides a quantitative analysis of the current market and estimations from 2024 to 2030. This analysis assists in identifying the prevailing market opportunities.
• The study comprises a detailed analysis of the travel insurance market trends, including current and future trends to depict prevalent investment pockets in the market.
• The information related to key drivers, restraints, and opportunities and their impact on the Travel insurance market is provided in the report.
• The competitive analysis of the market players along with their market share in the Travel insurance market is provided in the report.
• The SWOT analysis and Porter’s Five Forces model are elaborated in the report.
• The value chain analysis in the market study provides a clear picture of the role of stakeholders.