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The travel insurance market size is estimated to grow by USD 10.4 billion at a CAGR of 9.69% between 2022 and 2027. The travel insurance market is experiencing significant expansion, driven by several key factors. Firstly, the surge in tourism and business travel has led to an increased demand for risk mitigation solutions. Secondly, technological advancements have facilitated the digitalization of insurance processes, making it more convenient for customers to purchase and manage their policies. Lastly, the recognition of travel insurance as an essential component of comprehensive travel planning has fueled its growing popularity. As a result, market growth is anticipated to continue, with a focus on innovation, customer experience, and regulatory compliance.
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In today's dynamic travel landscape, travel insurance plays a crucial role for longstay travel, education travelers, family travelers, and business travelers alike. As insurance brokers and insurance aggregators facilitate coverage, modern travelers face uncertainties like lockdown measures, trip cancellations, lost baggage, and flight delays. With potential risks including natural disasters, political unrest, and terrorist attacks, travelers prioritize adaptability and secure their travel plans against changing conditions. The market responds with policies tailored to mitigate vulnerability and minimize inconveniences. From domestic travelers to those flying with international carriers like Malaysian airliner, trip insurance remains essential for safeguarding against unforeseen circumstances, ensuring peace of mind amid evolving travel conditions. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing tourism and business travel are driving market growth. Increasing consumer disposable income, rising business travel, and convenience of travel have resulted in the growth of the travel and tourism industry. As the travel insurance market is directly related, these factors also positively influenced the travel insurance market. Additionally, the shift towards carrying travel insurance being made mandatory by governments of numerous countries like the US, the UK, Australia, Germany, and Belgium has propelled market growth.
Moreover, several companies like AXA and Allianz Group are integrating technological advances like application program interface (API), artificial intelligence (AI), data analytics, and global positioning system (GPS) to enhance the user experience. Additionally, government initiatives to boost tourism will also result in rising demand for affordable travel insurance plans. Coverage such as medical emergencies, trip cancelation, and trip interruption during the pandemic has become essential. Hence such factors will boost market growth during the market forecasting period.
Insurance for unconventional expenses is a key trend in the market. Vacation rentals are popular, especially in the US with tourists opting for accommodation in furnished houses, apartments, or resort condominium complexes. Moreover, such vacation rentals usually have standardized cancelation policies to protect both the guests and the host alike for negligible costs. Some platforms from which people can choose rentals include Airbnb, Flip Key, VRBO, Home Away, Roomorama, House Trip, and Wimdu.
Moreover, if a tourist book rental is offered by these companies, then travel is covered under the travel insurance policy. Expenses incurred, such as deposits, cancellation fees, or any other out-of-pocket expenses, can be used as proof to claim reimbursements in case a tourist falls ill during a vacation. Hence, such factors will boost travel insurance market growth during the market forecast period.
The lack of awareness and delayed services is challenging market growth. There is limited awareness among consumers about insurance as a protection tool and details regarding coverage of insurance policies. Due to such factors, consumers hesitate to opt for travel insurance plans and this has resulted in limited adoption of it. This results in insurance service providers also offering services at a slow pace.
Moreover, claim settlements which are vital to ensure the goodwill of the company and renew consumer trust are not quickly processed. Companies may delay the processing of documents, especially those through various departments in a foreign country, which will result in delayed reimbursements. Such situations have resulted in a loss of client trust in travel insurance products and made them reluctant to purchase such products. Hence, such factors will hinder market growth during the market growth and forecasting period.
The market research 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 growth strategies.
Global Travel Insurance Market 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.
Allianz SE - The company offers travel insurance through its subsidiary Allianz Travel.
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 senior citizens segment is estimated to witness significant growth during the forecast period. Elderly people are increasingly demanding travel insurance that goes beyond basic insurance benefits and covers various health and age-related aspects of senior citizens. Moreover, senior citizens can adjust their travel insurance plans according to their requirements such as American International Group (AIG) which offers coverage for medical expenses related to COVID-19 when the insured person is outside India. This can help senior citizens to ensure safety in situations like overseas medical expenses, theft of belongings, etc.
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The senior citizens segment was the largest segment and was valued at USD 4.34 billion in 2017. Moreover, travel insurance policies might even pre-existing medical conditions at higher prices and can insure people up to 100 years old. However, the premium for people over 65 years keeps on increasing as they get older due to being vulnerable to illness, bad health, and accidents. Despite this limitation, they are offered far more benefits such as extra emergency and medical cover. Hence such factors are expected to propel the market growth of this segment during the market research and growth period.
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North America is estimated to contribute 38% 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. In North America, the largest regional market, a significant amount of the population goes for annual travel vacations abroad. Out of this population, engaging in adventure sports is very popular but risky as well. Hence, to cater to this, companies offer specialized policies that reduce the risks associated with travel, such as weather delays, mechanical delays, and medical emergencies.
Moreover, marketing and sales of such policies are devised in more appealing and relevant ways by travel agents who primarily sell insurance products. Additionally, companies are also using online platforms and channels that help expand visibility and increase sales to the strongly growing tourism industry in the region. Hence such factors will boost regional market growth during the market growth analysis period.
The market report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments
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In the realm of travel insurance, uncertainty is met with innovative solutions by insurance providers and insurtech firms. Whether for unique travel or specific activities, policies offer comprehensive coverage amidst epidemics and other health risks. Travel agencies and insurance intermediaries facilitate upsells and customization options, ensuring travelers recalibrate plans with ease. Recent mergers and new headquarters enhance service delivery, addressing concerns like lost luggage, changing travel conditions, and flight cancellations. Covering costs and losses from personal property to rental cars, insurers safeguard international travelers and Millennials alike, especially in tourist destinations. From package holidays to holiday coverage, policies protect against natural calamities, health problems, and loss of important documents. With diverse offerings from insurance vendors like Abstract Ventures, Comcast Ventures, and Foundation Capital, the sector evolves to meet evolving travel needs.
Travel Insurance Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.69% |
Market growth 2023-2027 |
USD 10.4 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.67 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 38% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Allianz SE, American Express Co., American International Group Inc., Arch Capital Group Ltd., Assicurazioni Generali S.p.A., Aviva insurance Ltd., AXA Group, Berkshire Hathaway Inc., British United Provident Association Ltd., Chester Perfetto Agency Inc., Chubb Ltd., Fairfax Financial Holdings Ltd., HanseMerkur Reiseversicherung AG, HDFC Ltd., MAPFRE S.A., Seven Corners Inc., SiriusPoint Ltd., Sun Life Financial Inc., The Goldman Sachs Group 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, and 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. |
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 End-user
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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