Travel Insurance Market Size - By Type (Domestic, International), Trip (Single, Multiple, Extended), End-Use (Senior Citizens, Corporate Travellers, Family Travellers, Education Travellers, Backpacker & Adventure Travellers), Provider & Forecast, 2023 - 2032
Published Date: April - 2025 | Publisher: MRA | No of Pages: 240 | Industry: Media and IT | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationTravel Insurance Market Size
Travel insurance is on the rise, valued at $21 billion in 2022. It's projected to continue growing at a rate greater than 9.5% per year up until 2032. So, why's it becoming more and more popular? More and more individuals are flying around the world, and they're getting that things happen while you're out there on the road. Travel insurance helps to safeguard against some of these unpleasant surprises like missing luggage, medical issues, or canceled trips. As per the World Travel & Tourism Council, the travel sector has been on a roll since the pandemic. It's now valued at $5.8 trillion, and it's also generating new employment. In 2021 alone, the travel sector created 18.2 million jobs—that's a 6.7% boost! So it's no surprise that travel insurance is gaining significance.
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Individuals are becoming aware that unforeseen incidents like trip cancellations, medical issues, lost luggage, or flight delays can ruin their vacation plans and cost them a lot of money. This realization has fueled increased demand for travel insurance as travelers try to cover themselves against such risks, further supporting the growth of the travel insurance market.
| Report Attribute | Details |
|---|---|
| Base Year | 2022 |
| Travel Insurance Market Size in 2022 | USD 21 Billion |
| Forecast Period | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR | 9.5% |
| 2032 Value Projection | USD 52.8 Billion |
| Historical Data for | 2018 - 2022 |
| No. of Pages | 200 |
| Tables, Charts & Figures | 317 |
| Segments covered | Type, Trip, Provider, End-Use |
| Growth Drivers |
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| Pitfalls & Challenges |
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What are the growth opportunities in this market?
The tourism industry is sensitive to worldwide happenings, including natural disasters, political instability, pandemics, and terrorism. These events may result in travel disruption, cancellation, or itinerary alteration. The uncertainty of the conditions of travel and the potential for unexpected alterations may deter tourists from buying travel insurance because they may not know whether their policy will cover them in certain circumstances. The pandemic of COVID-19, for example, prompted extensive travel ban and uncertainties that had a deep impact on the travel insurance market.
But today's traveler is venturing into all corners of the world and indulging in every sort of activity from adventure sports to business travel overseas. Each method of travel poses its own challenges and potential for problems. It is this mix of travel endeavors that has inspired the creation of specialized travel insurance products that respond to unique demands, like adventure travel insurance, business travel insurance, and cover for individual geographical areas.
For example, in order to simplify obtaining travel insurance for its consumers, Malaysian carrier MYAirline has selected Zurich Malaysia as its official travel insurer. Zurich will now insure all existing and new routes of the Malaysian carrier as part of the new agreement.
Travelers on MYAirline can acquire the MYAirline Travel Insurance, previously called MY Travel Shield, to shield their travels against inconveniences and accidents. Since it comes as part of the purchase of an airplane ticket, this protection is convenient to acquire. This personalization has broadened the market and drawn in a wider array of customers looking for special coverage on unique travel arrangements, boosting the outlook of the travel insurance market.
COVID-19 Impact
The arrival of COVID-19 seriously affected the nature of travel insurance, bringing uncertainty and rebalancing to an unprecedented level. Global travel limitations and lockdowns triggered a clamor for the cancellation and disruption of trips, which resulted in increased demand for trip interruption and cancellation coverage. Cases of stranding travelers offshore due to countries closing borders added emphasis to providing extensive emergency medical coverage, resulting in insurance firms reviewing their products. Further, the pandemic also highlighted the value of coverage against unexpected occurrences such as epidemics, which induced possible movement toward broader policies against health crises.
Travel Insurance Market Trends
Travelers' needs and wants regarding insurance protection are varied. To address this, the travel insurance market may see a trend towards more adaptable and personalized policies. This may include insurance companies providing modular coverage that enables travelers to choose particular coverage components according to their travel itinerary and personal preferences.
For instance, a visitor may opt for coverage in case of medical emergencies, cancellation of trips, and particular activities (e.g., adventure sports) but not in areas irrelevant to his or her trip. Personalizable policies may assist travelers in obtaining coverage that is more tailored to their specific requirements, perhaps enhancing the attractiveness of travel insurance.
In pursuit of that objective, in July 2021, a 2020-established insurtech named Pattern Insurance Services and Setoo, a company that helps travel agencies sell special and bespoke travel insurance products as upsells agreed to combine. The merged entity will be based in Palo Alto, California, and do business as Pattern across the United States and in Europe. The terms of the deal were not disclosed between the two companies. Collectively, the startups have secured $25 million in grant from a number of investors such as Abstract Ventures, MS&AD Ventures, Comcast Ventures, Foundation Capital, FinTLV, Kamet Ventures, TechAviv Founder Partners, and Kli Capital.
Travel Insurance Market Analysis
Discover more about the major segments defining this market
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The international segment travel insurance market achieved USD 15 billion revenue in 2022 and is expected to progress at more than 10% CAGR from 2023 to 2032, owing to increasing awareness of possible risks during global travel. Cases of travelers facing medical emergencies while traveling abroad, unforeseen cancellation of trips, lost baggage, and natural catastrophes have brought the exposed position of travelers to the forefront.
The COVID-19 pandemic further emphasized the need for comprehensive coverage as travelers faced uncertainties such as flight disruptions and quarantine requirements. As people increasingly explore diverse destinations, international travel insurance offers a safety net, assuring travelers that they are financially protected against unforeseen challenges during their journeys.
Learn more about the key segments shaping this market
The insurance companies segment held 55.86% of the travel insurance market share in 2022 and will exceed USD 25 billion in 2032. Insurance companies are witnessing a growth surge as leading travel insurance players and may hold a promising market share because of their ability to evolve with changing travel scenarios. With the emergence of personalized travel experiences, insurers are offering customized coverage to fit particular activities and locations.
For example, providing policies that suit adventure sport enthusiasts or corporate travelers. Furthermore, the COVID-19 pandemic highlighted insurers' capacity to create policies that tackle worldwide health emergencies. Such responsiveness and flexibility in response to shifting travel patterns place insurance firms in a critical position as key allies in protecting travelers from a wide range of possible disruptions, thus driving revenue for the travel insurance market.
Need region specific data?
North America travel insurance market size exceeded USD 6 billion in 2022 and will witness approximately 9.5% CAGR during 2032, driven by growing awareness and shifting travel patterns. With growing awareness of risks, demand for insurance has increased. For instance, the complications introduced by the COVID-19 pandemic led travelers to opt for protection against unexpected cancellations and medical emergencies. Besides, the varied spectrum of travel activities, from vacations with family to adventure tourism, has given rise to a demand for customized insurance products, contributing further to the growth of the sector within the region.
Travel Insurance Market Share
Some of the major companies operating in the travel insurance market are
- Generali Group
- Ping An Insurance Company of China,Ltd
- Aviva PLC
- Allianz Partners
- ERGO Group AG
- American Express Company
- Arch Capital Group Limited
- China Pacific Insurance (Group) Co.Ltd
- American International Group, Inc. (AIG)
- AXA Travel Insurance
- Zurich Insurance Group AG
Travel Insurance Industry News
- In May 2022, Generali Group acquired a 25% stake in Future Generali India Insurance (FGII). This acquisition gives Generali Group a controlling stake in FGII, the 7th largest non-life insurer in India, helping Generali Group expand its presence in the Indian market and offer a wide range of travel insurance products to Indian travelers.
The travel insurance market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments
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Market, By Type
- Domestic
- International
Market, By Trip
- Single
- Multiple
- Extended
Market, By Provider
- Insurance companies
- Banks
- Others
Market, By End-Use
- Senior citizens
- Corporate travellers
- Family travellers
- Education travellers
- Backpacker & adventure travellers
- Others
The above information has been provided for the following regions and countries
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Russia
- Asia Pacific
- China
- India
- Japan
- South Korea
- Australia
- Latin America
- Brazil
- Mexico
- MEA
- South Africa
- UAE
- Saudi Arabia
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