Travel Insurance Market Growth, Size, Trends, Analysis Report by Type, Application, Region and Segment Forecast 2021-2025
- Published: Mar 2021
- Pages: 118
- SKU: IRTNTR70405
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The travel insurance market share is expected to increase by USD 12.61 billion from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 9%.
This travel insurance market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers travel insurance market segmentations by end user (senior citizens, business travel, family travel, and others) and geography (North America, Europe, APAC, MEA, and South America). The travel insurance market report also offers information on several market vendors, including Allianz Group, American Express Co., American International Group Inc., AXA Group, Insure and Go Insurance Services Limited, MH Ross, Seven Corners Inc., Travel Insured International, USI Insurance Services, and Zurich Insurance Co. Ltd. among others.
What will the Travel Insurance Market Size be During the Forecast Period?
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Travel Insurance Market: Key Drivers, Trends, and Challenges
Based on our research output, there has been a negative impact on the market growth during and post COVID-19 era. The growing tourism and business travels is notably driving the travel insurance market growth, although factors such as lack of awareness and delayed services may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the travel insurance industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Travel Insurance Market Driver
One of the key factors driving the travel insurance market growth is the growing tourism and business travels. The travel and tourism industry has witnessed substantial growth in recent years on account of inflating disposable incomes, rising business travel, and the easy availability of online travel bookings. These factors are bolstering the global travel insurance market growth. Moreover, governments of numerous countries, such as the US, the UK, Australia, Germany, and Belgium, have made it mandatory to attach travel insurance documents while applying for visas, which is also contributing to market growth. Major market vendors such as AXA and Allianz Group are incorporating digital tools, such as application program interface (API), artificial intelligence (AI), data analytics, and global positioning system (GPS), for improving distribution systems and providing personalized user experience. Some insurers are offering insurance cover for COVID-19-related medical expenses for inbound travelers and extending the expiration period without adding extra charges in their policies. Coverage of medical emergencies, trip cancelation, and trip interruption during the pandemic has become essential. Hence, the growth of the tourism industry will fuel gross premiums for the travel insurance market during the forecast period.
Key Travel Insurance Market Trend
Another key factor driving the travel insurance market growth is the insurance for unconventional expenses. Vacation rentals are popular, especially in the US. Thus, when a tourist opts for vacation rentals, the person gets accommodation in furnished houses, apartments, or resort condominium complexes. Most vacation rentals have standardized cancelation policies (flexible, moderate, and strict), which protect both the guest and host alike and generate little or negligible reimbursements. Some of the top websites where people can list and choose rentals include Airbnb, Flip Key, VRBO, Home Away, Roomorama, House Trip, and Wimdu. If a tourist book rental is offered by these vendors, then the travel is covered under the travel insurance policy. In such rentals, the cost includes the expenses, deposits, and cancelation fee. Therefore, if a tourist (including a family member) falls ill during a vacation, he or she needs to show valid proof of the vacation rental and out-of-the-pocket expenses to claim reimbursements.
Key Travel Insurance Market Challenge
Lack of awareness and delayed services is one of the key challenges hindering the travel insurance market growth. Lack of awareness about insurance as a protection tool and inadequate details about the types of insurance products pose a major threat to the market. This often keeps potential clients away, which is one of the primary reasons for the slow growth of the market. The insurance service providers often offer services at a slow pace. The claim settlement process is a vital component in the whole process flow as it is crucial for the goodwill of the insurance company. Often the insurance companies are not agile in processing claims, especially processing documents through various departments in a foreign country. This has eroded client trust in travel insurance products and makes travelers reluctant to spend on such products. Moreover, in emerging countries, most insurance firms do not provide adequate insurance coverage for trip cancelation, especially for high-end customized trips that cost between $1,000 and above. This is another biggest challenges in the travel insurance market because some customers pay higher premiums; however, companies may not provide journey coverage for established international destinations.
This travel insurance market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Parent Market Analysis
Technavio categorizes the global travel insurance market as a part of the global specialized consumer services market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the travel insurance market during the forecast period.
Who are the Major Travel Insurance Market Vendors?
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
- Allianz Group
- American Express Co.
- American International Group Inc.
- AXA Group
- Insure and Go Insurance Services Limited
- MH Ross
- Seven Corners Inc.
- Travel Insured International
- USI Insurance Services
- Zurich Insurance Co. Ltd.
This statistical study of the travel insurance market encompasses successful business strategies deployed by the key vendors. The travel insurance market is fragmented and the vendors are deploying growth strategies such as organic and inorganic strategies to compete in the market.
Product Insights and News
- Allianz Group - The company offers various travel insurance policies.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The travel insurance market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Travel Insurance Market Value Chain Analysis
Our report provides extensive information on the value chain analysis for the travel insurance market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The report has further elucidated on other innovative approaches being followed by service providers to ensure a sustainable market presence.
Which are the Key Regions for Travel Insurance Market?
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37% of the market's growth will originate from North America during the forecast period. US and Canada are the key markets for travel insurance in North America. Market growth in this region will be slower than the growth of the market in APAC regions.
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 trip risks remain high. Therefore, vendors in the market offer special and customized policies to meet customer needs. This has expanded the demand for travel insurance products as the industry is trying to mitigate the risks associated with traveling, such as weather delays, mechanical delays, and medical emergencies. There is also a rise in the demand for travel insurance from students relocating to the US for higher education. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
The travel insurance market in the region registered a decline in growth owing to the lockdowns imposed because of the outbreak of COVID-19 in 2020. Government organizations imposed travel restrictions to prevent the spread of COVID-19. Flight operations were also suspended, due to which there was a decrease in the number of travelers. The International Air Transport Association (IATA) and the World Tourism Organization (UNWTO) estimated that international tourist arrivals declined by 20%-30% in 2020 due to the COVID-19 outbreak in comparison to 2019. However, the Insurance Regulatory department will make buying travel insurance mandatory to ensure that travelers are covered against any emergencies and medical expenses triggered by any infectious disease. Thus, the above-mentioned factors will drive the travel insurance market in the region during the forecast period.
What are the Revenue-generating End User Segments in the Travel Insurance Market?
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The travel insurance market share growth by the senior citizens will be significant during the forecast period. Travel insurance plans for senior citizens are meant for elderly travelers. These plans cover various health and age-related aspects of senior citizens that are excluded from basic travel insurance benefits. Travel insurance for senior citizens can safeguard trips by covering overseas medical expenses, theft of belongings, and more, depending on the coverage which will drive the demand for this segment during the forecast period.
Besides the above-mentioned factors, the post COVID-19 impact has brought forth a slowdown in or fast tracked the demand for the service or product. This report provides an accurate prediction of the contribution of all the segments to the growth of the travel insurance market size and actionable market insights on post COVID-19 impact on each segment.
Travel Insurance Market Scope
Growth momentum & CAGR
Accelerate at a CAGR of 9%
Market growth 2021-2025
$ 12.61 billion
YoY growth (%)
North America, Europe, APAC, MEA, and South America
Performing market contribution
North America at 37%
Key consumer countries
US, China, Germany, UK, and Canada
Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled
Allianz Group, American Express Co., American International Group Inc., AXA Group, Insure and Go Insurance Services Limited, MH Ross, Seven Corners Inc., Travel Insured International, USI Insurance Services, and Zurich Insurance Co. Ltd.
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 forecast period
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.
What are the Key Data Covered in this Travel Insurance Market Report?
- CAGR of the market during the forecast period 2021-2025
- Detailed information on factors that will drive travel insurance market growth during the next five years
- Precise estimation of the travel insurance market size and its contribution to the parent market
- Accurate predictions on upcoming trends and changes in consumer behavior
- The growth of the travel insurance industry across North America, Europe, APAC, MEA, and South America
- A thorough analysis of the market's competitive landscape and detailed information on vendors
- Comprehensive details of factors that will challenge the growth of travel insurance market vendors
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1 Executive Summary
2 Market Landscape
- 2.1 Market ecosystem
- Exhibit 01: Parent market
- Exhibit 02: Market characteristics
- 2.2 Value chain analysis
- Exhibit 03: Value Chain Analysis: Specialized Consumer Services
3 Market Sizing
- 3.1 Market definition
- Exhibit 04: Offerings of vendors included in the market definition
- 3.2 Market segment analysis
- Exhibit 05: Market segments
- 3.3 Market size 2020
- 3.4 Market outlook: Forecast for 2020 - 2025
- Exhibit 06: Global - Market size and forecast 2020 - 2025 ($ million)
- Exhibit 07: Global market: Year-over-year growth 2020 - 2025 (%)
4 Five Forces Analysis
- 4.1 Five force summary
- Exhibit 08: Five forces analysis 2020 & 2025
- 4.2 Bargaining power of buyers
- Exhibit 09: Bargaining power of buyers
- 4.3 Bargaining power of suppliers
- Exhibit 10: Bargaining power of suppliers
- 4.4 Threat of new entrants
- Exhibit 11: Threat of new entrants
- 4.5 Threat of substitutes
- Exhibit 12: Threat of substitutes
- 4.6 Threat of rivalry
- Exhibit 13: Threat of rivalry
- 4.7 Market condition
- Exhibit 14: Market condition - Five forces 2020
5 Market Segmentation by End-user
- 5.1 Market segments
- Exhibit 15: End user - Market share 2020-2025 (%)
- 5.2 Comparison by End user
- Exhibit 16: Comparison by End user
- 5.3 Senior citizens - Market size and forecast 2020-2025
- Exhibit 17: Senior citizens - Market size and forecast 2020-2025 ($ million)
- Exhibit 18: Senior citizens - Year-over-year growth 2020-2025 (%)
- 5.4 Business travel - Market size and forecast 2020-2025
- Exhibit 19: Business travel - Market size and forecast 2020-2025 ($ million)
- Exhibit 20: Business travel - Year-over-year growth 2020-2025 (%)
- 5.5 Family travel - Market size and forecast 2020-2025
- Exhibit 21: Family travel - Market size and forecast 2020-2025 ($ million)
- Exhibit 22: Family travel - Year-over-year growth 2020-2025 (%)
- 5.6 Others - Market size and forecast 2020-2025
- Exhibit 23: Others - Market size and forecast 2020-2025 ($ million)
- Exhibit 24: Others - Year-over-year growth 2020-2025 (%)
- 5.7 Market opportunity by End user
- Exhibit 25: Market opportunity by End user
6 Customer landscape
7 Geographic Landscape
- 7.1 Geographic segmentation
- Exhibit 27: Market share by geography 2020-2025 (%)
- 7.2 Geographic comparison
- Exhibit 28: Geographic comparison
- 7.3 North America - Market size and forecast 2020-2025
- Exhibit 29: North America - Market size and forecast 2020-2025 ($ million)
- Exhibit 30: North America - Year-over-year growth 2020-2025 (%)
- 7.4 Europe - Market size and forecast 2020-2025
- Exhibit 31: Europe - Market size and forecast 2020-2025 ($ million)
- Exhibit 32: Europe - Year-over-year growth 2020-2025 (%)
- 7.5 APAC - Market size and forecast 2020-2025
- Exhibit 33: APAC - Market size and forecast 2020-2025 ($ million)
- Exhibit 34: APAC - Year-over-year growth 2020-2025 (%)
- 7.6 MEA - Market size and forecast 2020-2025
- Exhibit 35: MEA - Market size and forecast 2020-2025 ($ million)
- Exhibit 36: MEA - Year-over-year growth 2020-2025 (%)
- 7.7 South America - Market size and forecast 2020-2025
- Exhibit 37: South America - Market size and forecast 2020-2025 ($ million)
- Exhibit 38: South America - Year-over-year growth 2020-2025 (%)
- 7.8 Key leading countries
- Exhibit 39: Key leading countries
- 7.9 Market opportunity by geography
- Exhibit 40: Market opportunity by geography ($ million)
8 Drivers, Challenges, and Trends
- 8.1 Market drivers
- 8.2 Market challenges
- Exhibit 41: Impact of drivers and challenges
- 8.3 Market trends
9 Vendor Landscape
- 9.1 Overview
- 9.2 Vendor landscape
- Exhibit 42: Vendor landscape
- 9.3 Landscape disruption
- Exhibit 43: Landscape disruption
- Exhibit 44: Industry risks
10 Vendor Analysis
- 10.1 Vendors covered
- Exhibit 45: Vendors covered
- 10.2 Market positioning of vendors
- Exhibit 46: Market positioning of vendors
- 10.3 Allianz Group
- Exhibit 47: Allianz Group - Overview
- Exhibit 48: Allianz Group - Business segments
- Exhibit 49: Allianz Group - Key news
- Exhibit 50: Allianz Group - Key offerings
- Exhibit 51: Allianz Group - Segment focus
- 10.4 American Express Co.
- 10.5 American International Group Inc.
- Exhibit 56: American International Group Inc. - Overview
- Exhibit 57: American International Group Inc. - Business segments
- Exhibit 58: American International Group Inc. - Key offerings
- Exhibit 59: American International Group Inc. - Segment focus
- 10.6 AXA Group
- Exhibit 60: AXA Group - Overview
- Exhibit 61: AXA Group - Business segments
- Exhibit 62: AXA Group - Key news
- Exhibit 63: AXA Group - Key offerings
- Exhibit 64: AXA Group - Segment focus
- 10.7 Insure and Go Insurance Services Limited
- Exhibit 65: Insure and Go Insurance Services Limited - Overview
- Exhibit 66: Insure and Go Insurance Services Limited - Product and service
- Exhibit 67: Insure and Go Insurance Services Limited - Key offerings
- 10.8 MH Ross
- Exhibit 68: MH Ross - Overview
- Exhibit 69: MH Ross - Product and service
- Exhibit 70: MH Ross - Key offerings
- 10.9 Seven Corners Inc.
- Exhibit 71: Seven Corners Inc. - Overview
- Exhibit 72: Seven Corners Inc. - Product and service
- Exhibit 73: Seven Corners Inc. - Key offerings
- 10.10 Travel Insured International
- Exhibit 74: Travel Insured International - Overview
- Exhibit 75: Travel Insured International - Product and service
- Exhibit 76: Travel Insured International - Key offerings
- 10.11 USI Insurance Services
- Exhibit 77: USI Insurance Services - Overview
- Exhibit 78: USI Insurance Services - Product and service
- Exhibit 79: USI Insurance Services - Key offerings
- 10.12 Zurich Insurance Co. Ltd.
- Exhibit 80: Zurich Insurance Co. Ltd. - Overview
- Exhibit 81: Zurich Insurance Co. Ltd. - Business segments
- Exhibit 82: Zurich Insurance Co. Ltd. - Key news
- Exhibit 83: Zurich Insurance Co. Ltd. - Key offerings
- Exhibit 84: Zurich Insurance Co. Ltd. - Segment focus
- 11.1 Scope of the report
- 11.2 Currency conversion rates for US$
- Exhibit 85: Currency conversion rates for US$
- 11.3 Research methodology
- Exhibit 86: Research Methodology
- Exhibit 87: Validation techniques employed for market sizing
- Exhibit 88: Information sources
- 11.4 List of abbreviations
- Exhibit 89: List of abbreviations
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
- Market size and forecast
- Market segmentation
- Geographical insights
- Competitive landscape
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Frequently Asked Questions?
- growing tourism and business travels
- insurance for unconventional expenses
Key Questions Answered
- What are the key global market and the regional market share?
- What are the revenue-generating key market segments?
- What are the key factors driving and challenging this market’s growth?
- Who are the key market vendors and their growth strategies?
- What are the latest trends influencing the growth of this market?
- What are the variables influencing the market growth in the primary regions?
- What are the factors influencing the growth of the parent market?
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