Travel Insurance Global Market Opportunities and Strategies to 2032

This report describes and explains the travel insurance market and covers 2017-2022, termed the historic period and 2022-2027 termed the forecast period, along with further forecasts for the period 2027-2032. The report evaluates the market across each region and the major economies within each region.

The global travel insurance market reached a value of nearly $19,278.6 million in 2022, having increased at a compound annual growth rate (CAGR) of 10.5% since 2017. The market is expected to grow from $19,278.6 million in 2022 to $41,424.6 million in 2027 at a rate of 16.5%. The market is then expected to grow at a CAGR of 16.6% from 2027 and reach $89,122.9 million in 2032.

Growth in the historic period resulted from increased travel and tourism, increased occurrences of natural disasters, the rise in business travel driven by urbanization, and the rise in disposable income. Factors that negatively affected growth in the historic period were the COVID-19 impact and the limitations and exclusions in travel insurance coverage.

Going forward, a growing demand for embedded, event-driven insurances, a growing awareness of travel associated risks, and the rising medical costs will drive the market. Factors that could hinder the growth of the travel insurance market in the future include the impact of the Russia-Ukraine war and the economic fluctuations.

The travel insurance market is segmented by type into domestic and international. The domestic market was the largest segment of the travel insurance market by type, accounting for $10,351.5 million or 53.7% of the total market in 2022. The international market is expected to be the fastest-growing segment going forward at a CAGR of 16.9%.

The travel insurance market is segmented by insurance cover into single-trip travel insurance, annual multi-trip travel insurance, and long-stay travel insurance. The single-trip travel insurance market was the largest segment of the travel insurance market by insurance cover, accounting for $11,501.6 million or 59.7% of the total market in 2022. The annual multi-trip travel insurance market is expected to be the fastest-growing segment going forward at a CAGR of 17.6%.

The travel insurance market is segmented by distribution channel into insurance intermediaries, insurance companies, banks, and other distribution channels. The insurance intermediaries market was the largest segment of the travel insurance market by distribution channel, accounting for $9,193.3 million or 47.7% of the total market in 2022. The other distribution channels market is expected to be the fastest-growing segment going forward at a CAGR of 18.6%.

The travel insurance market is segmented by coverage into medical expenses, trip cancellation, trip delay, property damage, and other coverages. The medical expenses market was the largest segment of the travel insurance market by coverage, accounting for $8,095.1 million or 42.0% of the total market in 2022. The medical expenses market is expected to be the fastest-growing segment going forward at a CAGR of 17.5%.

The travel insurance market is segmented by end-user into family travelers, corporate travelers, senior citizens, education travelers, and other end-users. The family travelers market was the largest segment of the travel insurance market by end-user, accounting for $8,482.6 million or 44.0% of the total market in 2022. The corporate travelers market is expected to be the fastest-growing segment going forward at a CAGR of 17.0%.

North America was the largest region in the travel insurance market, accounting for 28.9% of the global market in 2022. It was followed by Western Europe, Asia-Pacific and other regions. Going forward, the fastest growing regions in the travel insurance market will be the Asia-Pacific and South America, where growth will be at CAGRs of 18.6% and 18.3% respectively from 2022-2027.

The global travel insurance market is highly concentrated, with a few large players operating in the market. The top ten competitors in the market made up to 59.45% of the total market in 2021. Allianz Group was the largest competitor with a 16.03% share of the market, followed by Axa S.A with 14.52%, Berkshire Hathaway Specialty Insurance Company with 8.66%, Zurich Insurance Group AG with 5.51%, American International Group Inc. with 5.30%, American Express Company with 3.37%, Chubb Limited with 2.14%, Aviva Plc with 2.01%, Seven Corners Inc with 1.16%, and Travelex Insurance Services Inc with 0.75%.

The top opportunities in the travel insurance market by type will arise in the domestic market, which will gain $11,618.6 million of global annual sales by 2027. The top opportunities in the travel insurance market by insurance cover will arise in the single-trip travel insurance market, which will gain $12,563.1 million of global annual sales by 2027. The top opportunities in the travel insurance market by distribution channel will arise in the insurance intermediaries’ market, which will gain $9,870.7 million of global annual sales by 2027. The top opportunities in the travel insurance market by coverage will arise in the medical expenses market, which will gain $10,006.2 million of global annual sales by 2027. The top opportunities in the travel insurance market by end-user will arise in the family travelers market, which will gain $9,885.8 million of global annual sales by 2027. The travel insurance market size will gain the most in the USA at $4,620.0 million.

Market-trend-based strategies for the travel insurance market include focus on tech-driven platforms, digitalization and mobile integration, focus on blockchain technology, and strategic partnerships and collaborations.

Player-adopted strategies in the travel insurance industry include a focus on constant innovation and collaboration to form the financial plans for the business divisions, a focus on expanding the business by expansion of new travel insurance products to travellers from other countries, a focus on strengthening the business by providing services to companies from other geographic regions to increase the geographic reach, a focus on significant acceleration of the customer-centred strategy by utilizing advantage of data and innovation, and a focus on technological advancements and innovation in distribution, underwriting, recordkeeping, advisory, claims and operations.

To take advantage of the opportunities, the publisher recommends the travel insurance companies to focus on digitalization and mobile integration, focus on embracing blockchain technology, focus on tech-driven platforms, expand in emerging markets, focus on strategic partnerships and collaborations, provide competitively priced offerings, participate in trade shows and events, use direct-to-consumer (DTC) advertising, continue to target fast-growing end-users, target the millennial and Gen Z population, and increase focus on online consumers.