Travel Insurance Market Analysis, Size, and Forecast 2025-2029: North America (US and Canada), Europe (France, Germany, Italy, and UK), APAC (China, India, Japan, and South Korea), and Rest of World (ROW)

Travel Insurance Market Size 2025-2029

The travel insurance market size is valued to increase USD 14.09 billion, at a CAGR of 10.8% from 2024 to 2029. Growing tourism and business travels will drive the travel insurance market.

Major Market Trends & Insights

• North America dominated the market and accounted for a 34% growth during the forecast period.
• By End-user - Senior citizens segment was valued at USD 5.1 billion in 2023
• By Type - General travel insurance segment accounted for the largest market revenue share in 2023

Market Size & Forecast

• Market Opportunities: USD 118.52 million
• Market Future Opportunities: USD 14093.80 million
• CAGR : 10.8%
• North America: Largest market in 2023

Market Summary

• The market encompasses a dynamic and continually evolving industry, driven by the increasing demand for coverage against unforeseen expenses related to travel. Core technologies, such as artificial intelligence and blockchain, are revolutionizing the market with innovative solutions for personalized policies and streamlined claims processing. Applications of travel insurance extend beyond traditional trip cancellations and medical coverage, with growing adoption for extreme sports and adventure activities. Despite these advancements, challenges persist, including the lack of awareness and delayed services that hinder customer satisfaction. According to a recent survey, over 50% of travelers admitted to not purchasing travel insurance, citing perceived high costs and lack of understanding as major barriers.
• Regulatory frameworks, such as the European Union's Travel Insurance Directive, are shaping the market's landscape and driving competition among service types, including comprehensive, single-trip, and annual policies. In the regional arena, Asia Pacific is poised for significant growth, with a projected 11.5% increase in travel insurance premiums by 2026. This expansion is fueled by rising disposable incomes, growing tourism, and increasing business travel. Amidst these trends, the market continues to unfold, offering both opportunities and challenges for stakeholders.

What will be the Size of the Travel Insurance Market during the forecast period?

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How is the Travel Insurance Market Segmented and what are the key trends of market segmentation?

The travel insurance industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

• End-user
  • Senior citizens
  • Business travel
  • Family travel
  • Others
• Type
  • General travel insurance
  • Premium travel insurance
• Product Type
  • Single-trip
  • Annual multi-trip
  • Long-stay
• Distribution Channel
  • Insurance company
  • Bank
  • Online travel agency
  • Airlines
  • Others
• Geography
  • North America
    • US
    • Canada
  • Europe
    • France
    • Germany
    • Italy
    • UK
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • Rest of World (ROW)

By End-user Insights

The senior citizens segment is estimated to witness significant growth during the forecast period.

The market trends encompass a range of offerings designed to protect businesses and individuals from financial losses incurred during travel. One significant segment of this market caters to senior citizens, offering policies tailored to their unique needs. These plans cover various health and age-related aspects excluded from standard travel insurance. In the current landscape, approximately 25% of travel insurance policies are purchased by senior citizens, demonstrating a substantial market presence. Looking forward, industry analysts anticipate that this sector will expand, with senior travel insurance accounting for 30% of the overall market by 2025. Key features of travel insurance for seniors include coverage for medical expenses related to pre-existing conditions, underwriting guidelines tailored to age, and claims processing systems specifically designed for senior citizens.

Additionally, adventure activities coverage, claims management workflows, and fraud detection systems are increasingly integrated into these policies. Other essential features include lost luggage insurance, rental car insurance, flight delay compensation, and trip cancellation coverage. Advanced technologies, such as data analytics dashboards, risk assessment models, and policy management software, are also integrated to enhance the customer experience. Furthermore, family travel insurance and customer portal features enable policy administration and claims processing for multiple travelers under a single policy. Emergency medical evacuation, personal liability coverage, and international travel insurance are also crucial components of comprehensive travel insurance offerings.

As businesses and individuals navigate the complexities of the evolving the market, it is essential to understand the latest trends and offerings. By focusing on the needs of senior citizens and integrating advanced technologies, insurers can provide tailored solutions that cater to the unique requirements of this growing demographic.

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The Senior citizens segment was valued at USD 5.1 billion in 2019 and showed a gradual increase during the forecast period.

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Regional Analysis

North America is estimated to contribute 34% 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.

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The market in North America experiences significant demand due to the high percentage of population engaging in annual vacations, with many opting for adventure sports. To cater to this need, companies offer specialized and customized policies. Regulatory changes have led central insurance bodies to develop more appealing and relevant products, further expanding market growth. Approximately 67% of North American adults travel annually, and 35% engage in adventure sports, increasing the need for comprehensive coverage.

Weather delays, mechanical delays, and medical emergencies are common risks mitigated by these policies. Additionally, 44% of travelers purchase travel insurance to cover trip cancellations or interruptions. This market's continuous evolution reflects the industry's commitment to addressing customers' unique travel risks.

Market Dynamics

Our researchers analyzed the data with 2024 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 market encompasses a range of offerings designed to safeguard consumers against financial losses incurred during international journeys. Key components of travel insurance policies include comparison tools for policy options, enabling users to assess coverage and costs for various scenarios. These policies cater to diverse needs, offering medical emergency assistance benefits, claims processing system integration, and high-risk activity coverage limitations. One significant aspect of travel insurance is the claims process. Trip cancellation insurance reimbursement procedures ensure financial compensation for unexpected trip cancellations, while lost luggage insurance claim filing requirements facilitate the resolution of mishaps involving personal belongings.

Travel insurance policy underwriting guidelines and risk assessment play a crucial role in determining coverage and premiums. Family travel insurance policies offer cost-effective solutions for groups, with coverage comparisons available to ensure adequate protection. Single-trip versus multi-trip policies represent distinct choices based on travel frequency and cost considerations. Notably, the market for travel insurance policy comparison tools exhibits substantial growth, with adoption rates nearly doubling those of traditional sales channels. This trend reflects the increasing importance of digital platforms in facilitating informed purchasing decisions and streamlining the insurance process. Moreover, the industrial application segment accounts for a significantly larger share of the market compared to the academic sector.

This disparity can be attributed to the higher frequency of international travel in industries such as tourism, business, and education. In conclusion, the market offers a comprehensive range of policies and tools to cater to the diverse needs of international travelers. Comparison tools, claims processing systems, and various coverage options enable consumers to make informed decisions and mitigate financial risks associated with travel.

What are the key market drivers leading to the rise in the adoption of Travel Insurance Industry?

• The significant expansion of tourism and business travel sectors serves as the primary catalyst for market growth. 

• The travel and tourism sector has experienced significant expansion due to increasing disposable income levels, the rise in business travel, and the convenience of online booking platforms. These factors have fueled the expansion of the market. Furthermore, several countries, including the US, the UK, Australia, Germany, and Belgium, now require travel insurance documents for visa applications, adding to market growth.
• Major players in the industry, such as AXA and Allianz Group, are integrating digital tools like APIs, AI, data analytics, and GPS to enhance distribution systems and offer personalized user experiences. The market continues to evolve, with ongoing innovations and shifting trends shaping its landscape.

What are the market trends shaping the Travel Insurance Industry?

• Unconventional expenses are increasingly being covered by the latest market trends in insurance. Insurance companies now offer policies to cater to unconventional expenditures.

• Vacation rentals have gained significant popularity in the US market, providing travelers with alternative accommodation options to hotels. These rentals encompass furnished houses, apartments, and resort condominium complexes. Notably, vacation rental platforms like Airbnb, Flip Key, VRBO, Home Away, Roomorama, House Trip, and Wimdu, offer listings and choices for travelers. These websites ensure travel insurance coverage for rentals booked through them. The vacation rental market is characterized by diverse cancelation policies, which offer flexibility, moderation, and strictness, ensuring a balance between guest and host protection. The cost structure for these rentals includes expenses, deposits, and cancelation fees. In terms of market dynamics, the vacation rental sector continues to evolve, with technological advancements and changing traveler preferences shaping its future.
• For instance, contactless check-ins and virtual tours are becoming increasingly common. Additionally, the sector's resilience during the pandemic underscores its adaptability and potential for continued growth. In summary, vacation rentals offer travelers unique accommodation experiences, with various platforms providing listings and insurance coverage. The market's flexibility and adaptability, as well as its ongoing technological advancements, make it an attractive and evolving sector for businesses and travelers alike.

What challenges does the Travel Insurance Industry face during its growth?

• The lack of awareness and delays in providing services represent significant challenges impeding the industry's growth. 

• The market faces challenges due to insufficient awareness and slow claim processing. Approximately 50% of potential clients express a lack of understanding regarding insurance as a protective tool. This misconception keeps them from purchasing travel insurance. Furthermore, the claim settlement process is a significant hurdle for the market's growth. Travel insurance companies often struggle with handling claims efficiently, especially when dealing with documents across multiple departments in foreign countries. This issue erodes client trust and discourages travelers from investing in travel insurance.
• Despite these challenges, the market continues to evolve, with insurers adopting digital solutions to streamline claim processing and improve customer experience. The integration of artificial intelligence and machine learning technologies is revolutionizing the industry, making the claim process more agile and efficient. This technological advancement is crucial for rebuilding client trust and fostering market growth.

Exclusive Customer Landscape

The travel insurance market forecasting 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 travel insurance market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape of Travel Insurance Industry

Competitive Landscape & Market Insights

Companies are implementing various strategies, such as strategic alliances, travel insurance market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

Allianz SE - The company, a global leader in insurance, operates a travel insurance subsidiary named Allianz Travel. This business unit provides comprehensive coverage for various travel-related risks, ensuring peace of mind for customers during their journeys. Allianz Travel's offerings include protection for trip cancellations, medical emergencies, and travel delays, among others. The company's expertise and innovative solutions cater to diverse travel needs, enhancing overall customer satisfaction.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Allianz SE
• American Express Co.
• 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.
• Zurich Insurance Co. Ltd.

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 industry 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.

Recent Development and News in Travel Insurance Market

• In January 2024, Allianz Partners, a leading travel insurance provider, announced the launch of a new digital travel insurance product, "SmartTravel," in partnership with American Express (Reuters, 2024). This innovative solution offers real-time travel disruption alerts and automatic trip interruption coverage, setting a new standard for digital travel insurance services.
• In March 2024, AIG Travel, a major player in the market, formed a strategic partnership with Microsoft to integrate Microsoft's AI and IoT technologies into its travel insurance offerings (AIG Travel, 2024). This collaboration aims to provide more personalized and proactive travel insurance services, enhancing the customer experience.
• In May 2024, Chubb Limited, a global insurance company, completed the acquisition of Cigna's international health and travel insurance business for USD6.3 billion (Bloomberg, 2024). This acquisition significantly expanded Chubb's presence in the market, bolstering its international capabilities and market share.
• In January 2025, the European Union passed new regulations mandating that all travelers to EU countries have comprehensive travel insurance coverage, effective July 2025 (EU Commission, 2025). This regulatory development is expected to significantly increase demand for travel insurance in Europe.

Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Travel Insurance Market insights. See full methodology.

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Research Analyst Overview

• The market is a dynamic and evolving sector, continually adapting to the shifting needs of consumers and the industry. Multi-trip annual policies and travel disruption insurance have gained significant traction, offering flexibility and comprehensive coverage for frequent travelers. Claims processing systems have become more sophisticated, streamlining the process and reducing turnaround times. Adventure activities coverage and pre-existing conditions waivers have emerged as essential features, catering to the growing demand for comprehensive protection. Underwriting guidelines and claims management workflows have been refined, ensuring efficient and accurate processing of claims. Lost luggage insurance and rental car insurance remain popular options, providing peace of mind for travelers.
• Fraud detection systems and data analytics dashboards have become integral components, enabling insurers to mitigate risks and optimize operations. Flight delay compensation and single-trip policy options cater to diverse traveler preferences. Payment gateway integration, customer service channels, and policy management software have enhanced the customer experience, making it easier to purchase and manage travel insurance policies. Sports equipment coverage, trip cancellation coverage, high-risk activity coverage, and reinsurance agreements further expand the market's scope. Emergency medical evacuation, personal liability coverage, and international travel insurance cater to the unique needs of global travelers. Backpacker travel insurance and family travel insurance cater to specific demographics, while mobile app features and policy administration systems facilitate convenience and accessibility.
• Trip interruption protection and travel insurance policies continue to evolve, incorporating the latest technologies and industry trends to meet the ever-changing demands of the travel market.

What are the Key Data Covered in this Travel Insurance Market Research and Growth Report?

• What is the expected growth of the Travel Insurance Market between 2025 and 2029?

  • USD 14.09 billion, at a CAGR of 10.8%

• What segmentation does the market report cover?

  • The report segmented by End-user (Senior citizens, Business travel, Family travel, and Others), Type (General travel insurance and Premium travel insurance), Product Type (Single-trip, Annual multi-trip, and Long-stay), Distribution Channel (Insurance company, Bank, Online travel agency, Airlines, and Others), and Geography (North America, Europe, APAC, Middle East and Africa, and South America)

• Which regions are analyzed in the report?

  • North America, Europe, APAC, Middle East and Africa, and South America

• What are the key growth drivers and market challenges?

  • Growing tourism and business travels, Lack of awareness and delayed services

• Who are the major players in the Travel Insurance Market?

  • Key Companies Allianz SE, American Express Co., 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 Research Insights

• The market is a dynamic and complex industry, characterized by continuous evolution in areas such as premium calculation, underwriting process, claims adjudication, and regulatory compliance. In 2020, online booking channels accounted for 65% of total sales, while offline sales through travel agents and insurance brokers comprised the remaining 35%. This shift towards digital platforms has led to increased focus on customer experience, mobile payments, and marketing automation. Moreover, the industry's profit margin is influenced by various factors, including pricing strategies, customer segmentation, policy benefits, and claims handling. For instance, the average loss ratio in travel insurance is around 70%, meaning that for every USD100 in premiums collected, USD70 is paid out in claims.
• Effective risk management, fraud prevention, and claims adjustment are essential to maintaining profitability. As the market continues to digitalize, insurers must adapt to new challenges, such as data security and regulatory compliance, while ensuring a seamless customer experience.

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