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The personal travel accident insurance market size is forecast to increase by USD 37.6 billion, at a CAGR of 6.66% between 2023 and 2028. The growth of the market depends on several factors such as increasing number of travel accidents, rise in travel activities and increasing disposable incomes.
The report includes a comprehensive outlook on the market, offering forecasts for the industry segmented by Age Group, which comprises adults, senior citizens and children. Additionally, it categorizes Type into general personal travel accident insurance and premium personal travel accident insurance and covers Region, including North America, APAC, Europe, Middle East and Africa, and South America. The market analysis and report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, market growth and trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing disposable incomes is notably driving the market growth. The disposable income of people has increased significantly globally. For instance, according to the data stated by the Bureau of Economic Analysis, disposable personal income (DPI) increased to USD 89.7 billion (0.5%) in March 2022 in the US. Factors such as the rise in dual household income, per capita income, and rapid growth in the employment rate have driven the increase in disposable incomes worldwide. The growth in disposable income is expected to increase the spending and purchasing power of consumers.
Moreover, the boom in the tourism insurance industry has also encouraged consumers to spend on personal accidental travel insurance products owing to adventure activities such as skydiving, Jetman, kite surfing, hiking on mountains, and paragliding. Therefore, the increasing disposable income boosts the demand for personal accidental travel insurance products, which, in turn, will foster the growth of the market during the forecast period.
An increase in M&A of vendors is an emerging trend shaping the market growth. The market is fragmented, with many vendors. These vendors present in the market adopt strategies such as mergers and acquisitions to gain market shares and expand their reach across the globe. For instance, in January 2021, Allstate Corp. announced that it had acquired National General Holdings Corp. for USD 4 billion. The acquisition of National General allows Allstate Corp. to increase its market share globally.
Similarly, Liberty Mutual Insurance Group acquired Malaysian insurer AmGeneral Insurance Berhad in July 2022. The acquisition allows it to become a leading global property and casualty insurance company. Such developments by market vendors are expected to drive market growth and forecasting during the market forecast period.
Different healthcare laws in different countries are a significant challenge hindering market growth. In most countries, travel visas are not processed until personal travel accidental insurance is in place. For instance, rules and regulations imposed by governments have mandated consumers to avail of travel insurance, including accidental one, as a prerequisite for entering into any of the Schengen Area countries. Insurance policies should cover emergency medical and accidental conditions and treatment when travelling abroad because most nations do not provide access to healthcare facilities or hospitals without valid travel accidental insurance. The insurance industry should ensure that all treatment-related costs are paid as the costs of such healthcare are expensive, and a traveller may be unable to afford them.
As a result, it is important to opt for personal travel accidental insurance policies that cover emergencies, such as accident or injury coverage and death and disability coverage, while travelling abroad. However, different healthcare laws globally are expected to be a challenge for insurance providers, which will hamper the growth of the market during the forecast period.
The market research and growth report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AFIA Insurance Brokerage Services L.L.C - The company offers insurance such as the AIG TravelGuard deluxe travel insurance plan, which covers medical expenses, trip cancellation, trip delay, lost, delayed, or damaged baggage, and other
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The adults segment is estimated to witness significant growth during the forecast period. Adult travel accident insurance includes insurance for personal travellers above the age of 18 years. Factors such as growing interest in adventure activities and travel accidents are the major drivers for the growth of the adult segment. One example of accident insurance is coverage for accidental death or dismemberment (AD and D).
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The adults segment was the largest and was valued at USD 53.01 billion in 2018. The growing number of road accidents and plane crashes has also provided high growth opportunities for vendors in the market. For instance, around 20,600 people were killed in road crashes in 2022, a 3% increase in 2021 as traffic levels. Similarly, in 2021, 121 fatalities were recorded in aviation accidents on EU territory and involving EU-registered aircraft. Furthermore, in countries such as the UK, Germany, Spain, and Switzerland, the rising number of adventurous sports, such as kite surfing, hiking on mountains, and paragliding, attract many domestic and international tourists to these countries. However, the growing number of these adventure sports has also increased accidents. For instance, in 2022, 30 people have died during the first six months of 2022 in the Alps. Such factors are likely to continue during the forecast period, which is anticipated to increase the demand for personal accidental travel insurance coverage for adults, thereby driving the growth of the market during the forecast period.
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North America is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The majority percentage of the population in North America goes on annual travel vacations within the country or abroad. As many opt for adventure sports, their risks of accidents remain high. Therefore, vendors in the market offer special and customized policies to meet customer needs. This has expanded the demand for personal accidental travel insurance products in the regional market to mitigate the risks associated with travel accidents, such as death, disability, and injury. Moreover, other factors that will contribute to the growth of the market in the region during the forecast period include increasing road accidents resulting in death, the rising demand for air ambulance services, and the growing geriatric population.
For instance, according to the National Highway Traffic Safety Administration, 42,795 people died in motor vehicle traffic crashes in 2022. Similarly, the older population who are more than 65 years of age stands between 50 and 60 million at the end of 2021, which represents a significant percentage of the US population. The rise in the number of aged people who can afford to travel often is expected to boost the potential for personal accidental travel insurance coverage during the forecast period.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest market trends and analysis and growth opportunities from 2018 to 2028.
Personal Travel Accident Insurance Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2023 |
Historic period |
2018-2022 |
Market forecasting period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.66% |
Market Growth 2024-2028 |
USD 37.6 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.0 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 36% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aegon N.V., AFIA Insurance Brokerage Services L.L.C, Allianz SE, American Express Co., American International Group Inc., Aon plc, Assicurazioni Generali S.p.A., Aviva insurance Ltd., AXA Group, Berkshire Hathaway Inc., Chubb Ltd., ICICI Bank Ltd., Liberty Mutual Holding Co. Inc., Manulife Financial Corp., MAPFRE S.A., Munich Reinsurance Co., Nationwide Mutual Insurance Co., Seven Corners Inc., Star Health and Allied Insurance Co Ltd., The Allstate Corp., The Travelers Co. Inc., and Zurich Insurance Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
Detailed information on factors that will drive the growth of the market between 2024 and 2028
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Age Group
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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