Travel Insurance Market Size (2024 - 2029)

The travel insurance market is projected to experience significant growth over the forecast period, driven by the increasing need for financial protection against various travel-related risks. This market expansion is particularly relevant for frequent travelers who require coverage for issues such as flight cancellations and lost baggage, which are often not included in other insurance policies. The digital transformation of insurance distribution channels is further propelling this market, as more travelers prefer to purchase insurance online through established providers or innovative insurtech companies.

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Market Size of Travel Insurance Industry

Travel Insurance Market Summary
Study Period 2020 - 2029
Market Size (2024) USD 23.31 Billion
Market Size (2029) USD 44.84 Billion
CAGR (2024 - 2029) 15.40 %
Fastest Growing Market Asia Pacific
Largest Market North America

Major Players

Travel Insurance Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Travel Insurance Market Analysis

The Travel Insurance Market size is estimated at USD 23.31 billion in 2024, and is expected to reach USD 44.84 billion by 2029, growing at a CAGR of 15.40% during the forecast period (2024-2029).

Travel insurance plays a pivotal role in shielding individuals from potential hazards, whether traveling domestically or internationally. It is especially vital for frequent travelers, offering financial protection against risks like flight cancellations and baggage losses, often not covered by other insurance policies.

Traveling carries risks, from lost baggage to flight disruptions. Travel insurance steps in, covering losses of not just baggage but also money and crucial documents. It protects against accidents, injuries, and unforeseen events like riots or terrorist incidents.

Insurance distribution channels have swiftly pivoted toward digitalization. While detailed online sales data remains limited, a noticeable trend emerges: in many European nations, a significant share of clients now favors online platforms for their travel, property, and motor insurance needs.

The surge in OTA app usage underscores a growing preference for digital travel planning. This trend is expected to drive travelers to explore and purchase travel insurance online from established providers or emerging insurtech firms.

Travel Insurance Industry Segmentation

Travel insurance covers various risks in the course of travel. It covers medical expenses, lost baggage, flight cancellations, and other losses a passenger may incur while traveling. The travel insurance market is segmented by coverage type, by product type, distribution channel, and geography. By type, the market is segmented into single-trip travel insurance and annual-trip travel insurance. By product type, the market is segmented by trip cancellation/delay, travel medical insurance (personal accident), and other product types. By distribution channel, the market is segmented into insurance companies, insurance intermediaries, banks, insurance brokers and other distribution channels and by geography, the market is segmented into North America, South America, Asia-Pacific, Europe and Middle East & Africa. The report offers market sizes and forecasts for the travel insurance market in value (USD) for the all above segments.

by Coverage Type
Single-Trip Travel Insurance
Annual Multi-Trip Travel Insurance
By Product Type
Trip Cancellation/Delay
Travel Medical Insurance (Personal Accident)
Other Product Types
By Distribution Channel
Insurance Companies
Insurance Intermediaries
Banks
Insurance Brokers
Other Distribution Channels
By Geography
North America
United States
Canada
Europe
United Kingdom
Germany
France
Italy
Spain
Rest of Europe
Asia-Pacific
China
India
Japan
Rest of Asia-Pacific
Latin America
Mexico
Brazil
Argentina
Rest of Latin America
Middle-East and Africa
United Arab Emirates
Saudi Arabia
South Africa
Rest of Middle East and Africa
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Travel Insurance Market Size Summary

The travel insurance market is experiencing significant growth, driven by the increasing need for financial protection against travel-related risks such as flight cancellations, baggage losses, and unforeseen events like accidents or political unrest. This market is particularly crucial for frequent travelers and is becoming more accessible through digital platforms, reflecting a broader trend towards online travel planning and insurance purchases. The shift towards digitalization is evident in the growing use of online travel agency apps, which facilitate the exploration and acquisition of travel insurance from both established providers and emerging insurtech firms. Single-journey travel insurance is a popular choice, offering flexibility and affordability for travelers embarking on trips that span multiple countries without returning home between visits.

The Asia-Pacific region is at the forefront of the travel insurance market's expansion, fueled by government investments in tourism, robust economic growth, and a surge in online travel bookings. Countries like China and India are witnessing increased demand for travel insurance due to rising online bookings and a growing awareness of its importance for financial security. In Japan, the high cost of healthcare has made travel insurance a necessity. The market is characterized by fragmentation, with numerous international players competing to meet diverse traveler needs. However, consolidation is occurring as larger companies acquire smaller firms to strengthen their market position. Key industry players, including Allianz, American International Group Inc., Assicurazioni Generali SpA, Aviva, and AXA, are actively engaging in strategic collaborations and acquisitions to enhance their service offerings and market presence.

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Travel Insurance Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Role of Social Media in Fueling the Global Travel Insurance Market

      2. 1.2.2 Growing International Travelers and Changing Demographics Drive Demand

    3. 1.3 Market Restraints

      1. 1.3.1 Lack of Awareness Acting as a Restraint for Travel Insurance

      2. 1.3.2 Intense Competition and Price Sensitivity Challenges the Travel Insurance Market 

    4. 1.4 Market Opportunities

      1. 1.4.1 Technological Advancements in Travel Insurance

      2. 1.4.2 Lack of Awareness and Delayed Services is Challenging Market Growth

    5. 1.5 Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Insights into Technological Advancements in the Industry

    7. 1.7 Insights on Government Regulations in the Industry

    8. 1.8 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 by Coverage Type

      1. 2.1.1 Single-Trip Travel Insurance

      2. 2.1.2 Annual Multi-Trip Travel Insurance

    2. 2.2 By Product Type

      1. 2.2.1 Trip Cancellation/Delay

      2. 2.2.2 Travel Medical Insurance (Personal Accident)

      3. 2.2.3 Other Product Types

    3. 2.3 By Distribution Channel

      1. 2.3.1 Insurance Companies

      2. 2.3.2 Insurance Intermediaries

      3. 2.3.3 Banks

      4. 2.3.4 Insurance Brokers

      5. 2.3.5 Other Distribution Channels

    4. 2.4 By Geography

      1. 2.4.1 North America

        1. 2.4.1.1 United States

        2. 2.4.1.2 Canada

      2. 2.4.2 Europe

        1. 2.4.2.1 United Kingdom

        2. 2.4.2.2 Germany

        3. 2.4.2.3 France

        4. 2.4.2.4 Italy

        5. 2.4.2.5 Spain

        6. 2.4.2.6 Rest of Europe

      3. 2.4.3 Asia-Pacific

        1. 2.4.3.1 China

        2. 2.4.3.2 India

        3. 2.4.3.3 Japan

        4. 2.4.3.4 Rest of Asia-Pacific

      4. 2.4.4 Latin America

        1. 2.4.4.1 Mexico

        2. 2.4.4.2 Brazil

        3. 2.4.4.3 Argentina

        4. 2.4.4.4 Rest of Latin America

      5. 2.4.5 Middle-East and Africa

        1. 2.4.5.1 United Arab Emirates

        2. 2.4.5.2 Saudi Arabia

        3. 2.4.5.3 South Africa

        4. 2.4.5.4 Rest of Middle East and Africa

Travel Insurance Market Size FAQs

The Travel Insurance Market size is expected to reach USD 23.31 billion in 2024 and grow at a CAGR of 15.40% to reach USD 44.84 billion by 2029.

In 2024, the Travel Insurance Market size is expected to reach USD 23.31 billion.

Travel Insurance Market Report Snapshots

Travel Insurance Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)