The United States travel insurance market is estimated to USD 4.1 billion during the current year and is poised to grow at a CAGR of greater than 2% during the forecast period.
The travel industry is recovering from the aftermath of COVID-19, with air passenger volumes on the rise. As per Expedia’s 2022 Travel Trends Report, 59 percent of American respondents had planned domestic trips for the year, while 37 percent are planning both domestic and international trips. With significant importance on safeguarding and acute awareness of the ever-present risk of unexpected cancellations and possible shifting rules and regulations, travel insurance is in need. In fact, according to Yonder Travel Insurance, customers are purchasing travel insurance earlier in the booking process and a growing number of millennials are buying travel insurance.
Seven Corners is leveraging technology to enhance the claims process via a program called Claims Your Way. Regardless of how consumers choose to file, the software is used to automatically assign a claim to Seven Corners employees based on experience and availability. This allows for ample time and attention for each claim. Claims Your Way then sends consumers an automated message with the name and contact information of the employee handling their claim and pushes the claim to the customer’s account on sevencorners.com, making documentation and tracking easy to retrieve. Not only does this improve transparency, which is an ongoing goal for the industry, but it also simplifies the process and improves customer experience. Appeals and complaints regarding claims have decreased significantly since the program was launched.
The travel industry is recovering from the aftermath of COVID-19, with air passenger volumes on the rise. As per Expedia’s 2022 Travel Trends Report, 59 percent of American respondents had planned domestic trips for the year, while 37 percent are planning both domestic and international trips. With significant importance on safeguarding and acute awareness of the ever-present risk of unexpected cancellations and possible shifting rules and regulations, travel insurance is in need. In fact, according to Yonder Travel Insurance, customers are purchasing travel insurance earlier in the booking process and a growing number of millennials are buying travel insurance.
US Travel Insurance Market Trends
Increased Focus on Travel Safety and Insurance is Driving the Market Growth
With tourist uncertainty at an all-time high due to the COVID-19 pandemic, awareness for travel insurance has improved significantly. Travel insurance sales through Squaremouth.com surpassed pre-pandemic levels in the summer of 2021 and have continued to steadily rise as more people resume travelling. In 2021, sales were up 50 percent over 2019, and more than 200 percent over 2020. In the first two months of 2022, sales increased by 275 percent over the same period in 2021. Due to the pandemic, the rapid increase in Travel Insurance can be seen in the market. Therefore, it is the main key factor that is driving the insurance market.
Insurtech is dominating the Insurance Market
According to Susan Silfen, President of the US Travel Insurance Association (UStiA), stated that: “One of the growing travel insurance technology trends attractive to the younger generation of travelers is the immediate electronic payment for approved profits for the all-too-common travel inconveniences like a missed connection, baggage delay, flight delay, or an airline’s last-minute flight cancellation. Some travel insurance providers can track an insured’s flights, recognize a covered delay or cancellation, and automatically deposit the covered limit into an account or debit card, reducing the need to file a claim with receipts.” Technology has been a key attributor for travel insurance's increased penetration in the US.Seven Corners is leveraging technology to enhance the claims process via a program called Claims Your Way. Regardless of how consumers choose to file, the software is used to automatically assign a claim to Seven Corners employees based on experience and availability. This allows for ample time and attention for each claim. Claims Your Way then sends consumers an automated message with the name and contact information of the employee handling their claim and pushes the claim to the customer’s account on sevencorners.com, making documentation and tracking easy to retrieve. Not only does this improve transparency, which is an ongoing goal for the industry, but it also simplifies the process and improves customer experience. Appeals and complaints regarding claims have decreased significantly since the program was launched.
US Travel Insurance Market Competitor Analysis
The report includes major players operating in US Travel Insurance Market. In terms of market share, few of the major players currently lead the market. The companies which are holding the major market share in the Travel Insurance industry are Allianz Partners Sas and American International Group, Inc. Though, with technological advancement and service innovation, domestic to international companies are increasing their market presence by securing new contracts and tapping new markets. Moreover, companies including Travel Safe Insurance, Seven Corners Inc., Allianz Partners Sas, American International Group Inc., and USI Insurance Services, LLC, among others have been profiled in the report.Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Table of Contents
1 INTRODUCTION
4 MARKET DYNAMICS
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Seven Corners Inc.
- Travel Safe Insurance
- American International Group Inc.
- Allianz Partners Sas
- USI Insurance Services, LLC
- MH Ross Travel Insurance Services, Inc.
- Travel Insured International
- Travelex Insurance Services Inc.
- Berkshire Hathaway Travel Protection
- American Express Company
Methodology
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