Travel Insurance Market

Travel Insurance Market Size:

The global travel insurance market size reached USD 20.0 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 50.4 Billion by 2033, exhibiting a growth rate (CAGR) of 10.77% during 2025-2033. There are various factors that are driving the market, which include the rising focus on enhanced convenience during purchasing, managing, and utilizing services, favorable government initiatives, and increasing demand for personalized and customized traveling solutions.

Travel Insurance Market Analysis:

• Major Market Drivers: One of the key market drivers include the rising number of international travelers. Moreover, there is an increase in the utilization of digital platforms, which is acting as another growth-inducing factor.
• Key Market Trends: The rising focus on enhanced convenience and favorable government initiatives are main trends in the market.
• Geographical Trends: North America exhibits a clear dominance, accounting for the biggest market share owing to the high number of frequent travelers.
• Competitive Landscape: Major market players in the travel insurance industry are Allianz SE, American Express Company, American International Group, AXA SA, Berkshire Hathaway Specialty Insurance Company, Generali Group, Insure & Go Insurance Services (Mapfre S.A.), Seven Corners Inc., Travel Insured International Inc. (Crum & Forster), USI Affinity (USI Insurance Services), Zurich Insurance Group AG., among many others.
• Challenges and Opportunities: Regulatory and compliance issues represent a key market challenge. Nonetheless, the increasing focus on value-added services, coupled with the integration of insurance into corporate wellness, is projected to overcome these challenges and provide market opportunities.
   

Travel Insurance Market Trends:

Rising Focus on Enhanced Convenience

The increasing focus on improved convenience in terms of purchasing, managing, and utilizing travel insurance is propelling the market growth. Insurance companies are offering online platforms and mobile apps that allow individuals to purchase policies, file claims, and manage their coverage anytime and anywhere. People can easily compare different policies and get instant quotes, enabling informed decision-making with minimal hassle. In addition, many insurers are offering multilingual support to assist travelers in their preferred language, which is offering a favorable travel insurance market outlook. Furthermore, there is a rise in the demand for digital claims filing procedures as they minimize paperwork, speed up claim decisions, and improve user satisfaction. Major competitors in the market are launching different insurance packages to give individuals enhanced convenience. For instance, the 'Travel Guard Plus' travel insurance plan was introduced by TATA AIG General Insurance on March 18, 2024. It offers coverage for up to one year through numerous or single journeys. Optional assistance services, such as Care at Home, Baggage tracking, and Lost Passport tracking are added to enhance convenience for travelers.

Favorable Government Initiatives

Governing agencies of various countries are implementing regulations to standardize travel insurance policies, ensuring that they meet minimum coverage requirements and provide adequate protection for individuals, which is propelling the travel insurance market growth. They are mandating travel insurance for entry, especially for international travelers. By doing this, travelers are guaranteed covering for unanticipated circumstances, medical crises, and repatriation. Governing authorities are mandating proof of travel insurance to individuals when applying for visas in order to maintain transparency and reduce fraud. For example, on 1 January 2023, India's Insurance Regulatory and Development Authority (IRDAI) mandated Know Your Customer (KYC) verification for all motor insurance users. Aadhaar-based KYC, digital KYC, video KYC, and central KYC (CKYC) are all acceptable forms of verifying an individual’s identity. Not just motor insurance but new health, travel, and home insurance policies also require KYC documents, regardless of the policy's premium. It aims to detect and reduce the insurance-related impact, like crimes such as money laundering. 

Increasing Demand for Personalized Traveling Solutions

The rising focus on personalized traveling solutions among individuals is significantly boosting the travel insurance market size. Insurance that fits individual travel plans is what customers are looking for, whether they are going on an adventure, a luxury vacation, a business trip, or a family vacation. Insurers are offering policies that address these specific demands. In order to avoid being under- or overinsured, travelers can select coverage limits based on their risk tolerance and trip budget. Travelers can also add or subtract coverage components such trip cancellation, baggage loss, or medical crises, from insurers' modular plans according to their specific needs. Apart from this, companies are allowing travelers to modify their coverage in real time through digital platforms or mobile apps in order to increase their travel insurance market revenue. For instance, on 7 August 2024, Gigasure, an insurtech platform, announced its official launch with travel, backpackers, and car hire excess insurance. Travelers can utilize the platform to personalize their insurance policies and meet their unique demands while on the road. Gigasure policyholders can add or remove advantages using the app as per their demands and financial constraints. The platform also offers real time assistance for flight and baggage delays and on-demand customization. Gigasure provides new features, flexibility, and seamless claims through the app, giving individuals complete control over their insurance.

Travel Insurance Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on insurance type, coverage, distribution channel, and end user.

Breakup by Insurance Type:

• Single-Trip Travel Insurance
• Annual Multi-Trip Insurance
• Long-Stay Travel Insurance
   

Annual multi-trip insurance accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the insurance type. This includes single-trip travel insurance, annual multi-trip insurance, and long-stay travel insurance. According to the report, annual multi-trip insurance represented the largest segment.

Annual multi-trip insurance offers a cost-effective solution for frequent travelers who take multiple trips throughout the year. Instead of purchasing separate policies for each trip, travelers can save money with a single annual policy. This type of insurance allows travelers to purchase insurance once a year and eliminates the need to arrange coverage for each individual trip. Furthermore, managing a single annual policy is simpler and less time-consuming than handling multiple policies for various trips, which is leading to a positive travel insurance market forecast.

Breakup by Coverage:

• Medical Expenses
• Trip Cancellation
• Trip Delay
• Property Damage
• Others
   

Medical expenses hold the largest share of the industry

A detailed breakup and analysis of the market based on the coverage have also been provided in the report. This includes medical expenses, trip cancellation, trip delay, property damage, and others. According to the report, medical expenses account for the largest market share.

Travelers can avoid paying large out-of-pocket costs by purchasing travel insurance, which covers medical expenses. While traveling, there is a chance of getting sick or having an accident, therefore having insurance is necessary to deal with unanticipated medical needs. The market is expanding as people are becoming more conscious of the possible health concerns associated with travel. Travel insurance companies are covering medical expenses in their coverage to provide improved convenience to individuals. 

Breakup by Distribution Channel:

• Insurance Intermediaries
• Banks
• Insurance Companies
• Insurance Aggregators
• Insurance Brokers
• Others
   

Insurance intermediaries represent the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes insurance intermediaries, banks, insurance companies, insurance aggregators, insurance brokers, and others. According to the report, insurance intermediaries represent the largest segment.

Insurance intermediaries such as travel agents and brokers provide personalized advice and recommendations based on the specific needs and preferences of travelers. They help individuals navigate the complexities of different travel insurance policies, ensuring they choose the most suitable coverage. Intermediaries often have extensive networks and partnerships with multiple insurance providers, giving them access to a wide range of products and options.

Breakup by End User:

• Senior Citizens
• Education Travelers
• Business Travelers
• Family Travelers
• Others
   

Family travelers exhibit a clear dominance in the market 

A detailed breakup and analysis of the market based on the end user have also been provided in the report. This includes senior citizens, education travelers, business travelers, family travelers, and others. According to the report, family travelers account for the largest market share.

Family travelers are seeking coverage that includes medical emergencies, trip cancellations, lost luggage, and other potential risks, ensuring peace of mind for all members. Families tend to travel frequently, whether for holidays, reunions, or educational trips, increasing the demand for travel insurance. Travel insurance providers usually offer group discounts for family policies, making it more economical for families to insure their trips.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest travel insurance market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represents the largest regional market for travel insurance.

North America has a high number of frequent travelers, both domestically and internationally. The region’s residents often travel for leisure, business, and educational purposes, driving demand for travel insurance. In addition, North America has a well-developed insurance industry with a wide range of travel insurance products and services tailored to meet the diverse needs of travelers. Top players in the region are engaging in partnerships, collaborations, and mergers and acquisitions (M&As) to expand their market reach. For instance, on 26 June 2024, Zurich Insurance Group (Zurich) announced an agreement to acquire AIG’s global personal travel insurance and assistance business (AIG Travel) for USD 600 Million, plus a potential additional earn-out payment. The business will be combined with Zurich’s travel insurance provider Cover-More Group (Cover-More) and will expand its footprint in the United States. The acquisition gives Zurich access to a new global retail consumer base and makes it a leading travel insurer worldwide.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the travel insurance industry include:

• Allianz SE
• American Express Company
• American International Group
• AXA SA
• Berkshire Hathaway Specialty Insurance Company
• Generali Group
• Insure & Go Insurance Services (Mapfre S.A.)
• Seven Corners Inc.
• Travel Insured International Inc. (Crum & Forster)
• USI Affinity (USI Insurance Services)
• Zurich Insurance Group AG
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Key players in the market are developing specialized policies, integrating digital platforms, expanding product portfolio, and engaging in partnerships with other firms. All of these are providing travel insurance market recent opportunities. Companies are investing in digital platforms and mobile apps that allow individuals to purchase, manage, and claim travel insurance easily and conveniently. They are focusing on offering round-the-clock client support to assist travelers with emergencies, claims, and other inquiries. Moreover, they are partnering with travel agencies, airlines, and online travel booking platforms to offer comprehensive travel insurance products. Furthermore, companies are expanding their market reach by undertaking many initiatives. For example, on 4 May 2023, Travel insurance aggregator InsureMyTrip expanded its product offerings in Canada. Traveling Canadians and visitors to the country can now go online to InsureMyTrip.ca to quote, compare, and purchase travel insurance.

Travel Insurance Market Recent Developments:

• 21 March 2024: Zurich Insurance partnered with travel and leisure e-commerce platform Klook to introduce FlyEasy coverage, which, powered by Zurich Edge platform with micro-services from Blink Parametric, aims to reduce stress among individuals from long flight delays at airports. FlyEasy offers travelers real time complimentary lounge access that is available through Blink Parametric’s association with DragonPass network in any airport around the world whenever their flights are delayed by more than two hours with no claims filing or application processing required.
• 23 October 2023: Travel Insured International (Travel Insured), a leading travel insurance provider, engaged Robin Assist, a tech-driven emergency travel assistance platform, to deliver responsive user service, emergency travel and medical assistance, and claims to its insureds from any device, anytime, anywhere. The alliance provides Travel Insured’s individuals mitigate travel risk.
• On 17 June 2024: AXA Hong Kong and Macau (AXA) and HK Express Airways (HK Express) announced an exclusive insurance partnership agreement. AXA is committed to offering HK Express customers a fast, simple, and convenient travel insurance experience while providing tailored protection for mass travelers.

Travel Insurance Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the travel insurance industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.