Global Travel Insurance Market 2024-2031

Global Travel Insurance Market 2024-2031

Travel Insurance Market Size, Share & Trends Analysis Report by Type (Single-Trip Travel Insurance, and Annual Multi-Trip Travel Insurance), by Distribution Channel (Insurance Companies, Insurance Intermediaries, Banks, Insurance Brokers, and Others), and by End-User (Senior Citizens, Education Travelers, Family Travelers, and Others) Forecast Period (2024-2031)

Travel insurance market is anticipated to grow at a CAGR of 15.4% during the forecast period (2024-2031). The travel insurance market is expanding owing to factors like increasing global tourism. The COVID-19 pandemic has increased demand for travel insurance. Technological advancements and product innovation have made it easier for consumers to compare and purchase policies. Demographic changes and strategic partnerships among providers, agencies, and airlines also contribute to market growth.

Market Dynamics

Increase in foreign arrivals

Growing international arrivals have led to a large increase in the number of travelers seeking insurance coverage for medical emergencies, trip cancellations, and other travel-related threats. According to, UN Tourism, in January 2024, at a substantial increase from pre-pandemic levels, the global tourist industry reached in 2023 with an expected 1.3 billion global arrivals.

Increasing Consumer Awareness and Engagement

Consumer awareness of travel insurance is increasing owing to global events and health crises, leading to more proactive planning and securing comprehensive coverage. For instance, in October 2022, India International Insurance launched i-Journey, a travel insurance policy for Singapore residents. The policy offers comprehensive coverage for terrorism, travel delays, child protection, baggage loss, personal money, and home contents. It also includes COVID-19 extended coverage, including medical expenses, repatriation, travel cancellations, quarantine allowances, and follow-up treatment. As travel borders open, Singapore residents are eager to travel, as many international borders require proof of sufficient travel insurance for visas or entry.

The demand for travel insurance coverage is also driven by increasing awareness of the potential risks associated with travel, such as interruptions, medical problems, and cancellations, which encourages tourists to safeguard vacations and finances. For instance, in January 2024, EaseMyTrip launched its new subsidiary, EaseMyTrip Insurance Broker Private Limited, to enter the booming Indian insurance market, estimated at ₹7.9 trillion and growing at 32-34% annually. This move aims to diversify services and offer a complete travel ecosystem.

Market Segmentation

Based on type, the market is segmented into single-trip travel insurance and annual multi-trip travel insurance.

Based on distribution channel, the market is segmented into insurance companies, insurance intermediaries, banks, insurance brokers, and others (travel agencies & tour operators, retail stores, and specialty travel insurance providers).

Based on end-users, the market is segmented into senior citizens, education travelers, family travelers, and others (business travelers, expatriates, and international assignees).

Insurance Intermediaries Sub-segment to Hold a Considerable Market Share

This model can increase insurance penetration in rural areas and cater to economic growth by boosting rural areas, particularly as travel increases. For instance, in October 2023, IRDAI introduced a new insurance intermediary business model, allowing Bima Vahaks to distribute life and general insurance policies in rural areas using a hand-held electronic device, 'Bima Vistaar', a digital platform.

Regional Outlook

The travel insurance market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).

Growing Demand for Inclusive Insurance In Asia-Pacific Region

Increased demand for comprehensive insurance policies in India that provide comprehensive healthcare coverage results from increased mobility globally. For instance, in December 2023, Reliance General Insurance Company Ltd launched Reliance Health Global, a policy offering comprehensive coverage for global healthcare accessible to Indians, including critical illnesses like cancer and bypass surgery, air ambulance, and organ donor expenses, without restrictions on room rent.

North America Holds Major Market Share

The travel industry is recovering and growing owing to increased travel volumes and demand for travel insurance to cover potential risks. According to the US Travel Association, in 2022, US travel spending reached $1.2 trillion, matching pre-pandemic levels. The economic influence was $2.6 million, with average domestic flight prices of $378 and daily costs of $354.5 in major US cities. The growing tourism across the region along with the high expenditure of citizens on insurance services is a key factor driving the regional market growth.

Market Players Outlook

The major companies serving the travel insurance market include Allianz SE, American International Group, Inc., AXA Group, Berkshire Hathaway Specialty Insurance Co., and Generali Global Assistance & Insurance Services among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers and acquisitions to stay competitive in the market. For instance, in May 2023, Easy Trip Planners plans acquired entities in cruise and tour package services, hotel reservation services, medical and educational tourism, and other regions in North America, UAE, South Pacific, and India, subject to regulatory and shareholder approval.