Travel Insurance Market Analysis and Global Forecast 2022-2030

The Travel Insurance market size is projected to reach approximately $ 119.31 billion by 2030, at a CAGR of 26.1% from 2022 to 2030.  Travel insurance aids the traveler in preparing them for any unprecedented events that can negatively affect their travel. Travel insurance provides financial protection against expenses or losses incurred as a result of unforeseen circumstances while traveling within the country or abroad. Typically, this includes the cost of lost or stolen items, medical emergencies, accidental death, and trip cancellation or interruption costs. It is valid from the date of travel until the arrival of the insured at the place of residence. Several companies now offer travel insurance along with 24/7 emergency services including replacement of lost passports, cash assistance, and rebooking of canceled flights. Major players also offer individual options depending on the geographic location and the insured person’s needs.

COVID-19 Impact Analysis

The COVID19 pandemic has brought the world to a standstill, with unprecedented and unforeseen consequences affecting people’s lives, the global economy, communities, and even livelihoods, and the ability to the global recession and record-high layoffs. With strict quarantine regulations and travel restrictions around the world, the travel and tourism sector has experienced a severe economic downturn. According to a report released by the World Tourism Organization (UNWTO) in January 2021,  international arrivals decreased by more than 74% in 2020  compared to the previous 2019. These factors have impacted the travel insurance market.

However, with the easing of travel restrictions, the tourism and hospitality sectors are expected to regain their customers soon. According to a survey conducted by Morning Consult and commissioned by the American Hotel & Lodging Association (AHLA) in February 2021, more than 56% of Americans indicated an intention to travel shortly. Such cases promise great opportunities for the growth of the travel insurance market in the coming years.

Market Dynamics

The growth of the global travel insurance market is driven by factors such as increased travel demand after the pandemic. In addition, government-imposed travel policies are further driving the growth of the travel insurance market. However, the low penetration of insurance policies has limited the growth of this market. On the contrary, new technological developments in the travel industry are expected to present many opportunities for the expansion of the travel insurance market during the forecast period.

Drivers

Ø  Increase in Tourism

The growing number of international travelers seeking financial protection while traveling should be driving the growth of the industry. Growing demand for lost and found replacements, travel cancellations, and health concerns will boost market revenues. The cost of such accidents is significant when traveling abroad, and travel insurance offers several benefits that minimize risks while traveling.

Restraint:

• The lack of awareness of different schemes

the lack of awareness of different insurance schemes and the benefits of this alternative can affect travel insurance market negatively. Moreover, relaxed restrictions and low fluctuation in rates due to a large number of competitors have caused a decline in gross written premium.

Opportunity:

• Travel insurance companies offer customized plans to increase the customer base

The travel insurance market is poised for significant development as more and more insurance companies offer affordable and attractive plans. These companies offer attractive packages for various travel categories. For example, Chubb Limited offers Passport 360 travel insurance which offers upgrade options including golf packages. This package covers recreational equipment delays and recreational vehicle breakdowns. Companies are also focusing on existing value-added plans, including online health consultations and Wi-Fi rental services.

Segment Overview

By  Coverage Type

Depending on coverage type, the travel insurance market has been segmented into a single trip and an annual multi-trip. The annual multi-travel insurance segment dominated the travel insurance market in 2020 and is forecast to show the highest growth and this segment is expected to maintain this trend over the forecast period. The growth of the sector is attributed to the normalization of travel restrictions after the COVID-19 pandemic and the recovery of the tourism industry.

By Distribution channel

Based on distribution channels, the travel insurance market has been divided into Insurance Intermediaries, Insurance Companies, Banks, Insurance Brokers, and Insurance Aggregators. The insurance companies are expected to hold the largest market share due to increased demand from the corporate sector.

Regional Analysis

Based on region, the travel insurance market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World.

Europe Market

The travel insurance market is led by Europe and is expected to peak during the forecast period due to the growing demand for travel and tourism in Europe and the region’s rapid economic growth supporting the growth of the travel insurance industry.

Asia-Pacific Market

The Asia-Pacific region is expected to experience significant growth over the forecast period, driven by the growth of many industries in the Asia-Pacific region driving business travel and thriving tourism industry in the region supporting the growth of China’s travel insurance in this market region.

Competitive Landscape

The market comprises tier-1, tier-2, and local players. With their wide product portfolios, tier-1 and tier-2 players have a global reach. Because of their strategic innovations and broad regional presence, companies such as ALLIANZ, AMERICAN INTERNATIONAL GROUP INC., Assicurazioni Generali S.P.A., AXA, Insure and Go Insurance Services Limited, Seven Corners Inc., Trip Mate Inc., Travel Insured International, Travel Safe Insurance, and USI INSURANCE SERVICES LLC. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as growth, product releases, and alliances.

Prominent Players:

• ALLIANZ, AMERICAN INTERNATIONAL GROUP INC.
• Assicurazioni Generali S.P.A.
• AXA
• Insure and Go Insurance Services Limited
• Seven Corners Inc.
• Trip Mate Inc.
• Travel Insured International
• Travel Safe Insurance
• USI INSURANCE SERVICES LLC.

Scope of the Report

Travel Insurance Market, by Coverage Type

• Single trip
• Annual multi-trip

Travel Insurance Market, by distribution channel

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

 

Global Travel Insurance Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Rest of Europe
• The Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia Pacific
• Rest of the World

 

Parameters	Indicators
Market Size	2030: $ 1,19.31Billion
CAGR	21.6% CAGR (2022-2030)
Base year	2021
Forecast Period	2022-2030
Historical Data	2020
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Coverage Type, Distribution channel, end-user
Geographies Covered	North America, Europe, Asia-Pacific, Latin America, Middle East, Africa
Key Vendors	ALLIANZ, AMERICAN INTERNATIONAL GROUP INC., Assicurazioni Generali S.P.A., AXA, Insure and Go Insurance Services Limited, Seven Corners Inc., Trip Mate Inc., Travel Insured International, Travel Safe Insurance, and USI INSURANCE SERVICES LLC.
Key Market Opportunities	Travel insurance companies offer customized plans to increase the customer base
Key Market Drivers	Increase in Tourism

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future travel insurance market trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities in the future
• Travel insurance market historical market size for the year 2020, and forecast from 2021 to 2028
• Travel insurance market share analysis at each product level
• Competitor analysis with a detailed insight into its product segment, financial strength, and strategies adopted.

• Identifies key strategies adopted, including product launches and developments, mergers and acquisitions, joint ventures, collaborations, partnerships, and funding taken and investment done, among others.
• To identify and understand the various factors involved in the global Travel Insurance market affected by the pandemic
• To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.