Global Travel Insurance Market Overview
The global Travel Insurance Market was valued at USD 13.9 BN in 2019 and is likely to grow with a CAGR of over 5.5% between 2020 and 2026. The travel insurance market growth is mainly driven by the rising number of tourists and travelers worldwide. An increase in travelers is primarily accountable to higher disposable income with easy and convenient travel booking. The expansion in businesses globally is one of the significant factors contributing to the high growth of the travel insurance market. The international business expansion provides an option to conquer new territories and reach more consumers, thus increasing sales. The increasing expansion of businesses increases the single and multiple trips to different countries, which significantly helps propel the growth of the travel insurance market globally.
Currently, many jobs involve sporadic or regular business travel. Business travel is projected to grow by 6% between 2018 and 2019. Owing to the ever-rising number of business travelers, the global business travel market is anticipated to reach over USD 1.6 trillion by 2026. Besides, travel insurance has witnessed substantial demand from Europe and North America over the past decade; thus, accounting for the largest stake of the global travel insurance market in terms of revenue generation. Tourism is one of the primary target markets for travel insurance. Europe and North America have witnessed the largest number of international tourists’ arrival since the past few decades. Ever rising international traveling is thus, one of the major growth factors for travel insurance.
The sudden outbreak of COVID in late 2019 disrupted the business operations. This has led the insurance companies to bring change in the existing travel insurance policy and its coverage. Due to this pandemic, there has been a sharp decline in domestic and international travelers, which is negatively impacting this market. In addition to trip cancellations, several governments have imposed strict restrictions on international and domestic commercial flights that have traumatized this market.
The global travel insurance market is high competitive due to presence of large number of companies. The key leaders are entering into various strategic like agreement and collaboration to expand their presence. For instance, In Feb 2020, AXA Thailand partners with Bangkok Airways to launch new travel insurance product. The report studies a few key players of the global travel insurance market in detail, covering the company profile, major product, and financial information. The dominating key players included in the report are Allianz SE, Munich Reinsurance America, Inc., American Express Company, Travelex Insurance Services, Atlas Travel Insurance Services Ltd., Aviva PLC, Saga Plc, Bajaj Finserv Limited, China Pacific Life Insurance Co., Ltd., China Life Insurance Company Limited., Prudential Financial Inc. and many others.
In this market research report, the market is segmented by type, insurance cover, application, end user and region.
Analysis By Type
By type, the market is segmented into medical expenses, trip cancellation, trip delay, and property damages. Among these medical expenses is dominating the segment accounting more than 45% market share in 2019, followed by trip cancellation. Most of the travel insurance providers cover the medical expenditure to offer the highest financial benefit related to the medical issue during traveling. This helps the traveler to get medical treatment through any medical contingencies and emergencies. Under the travel medical insurance, the traveler can benefit from cashless hospitalization, personal accident cover, illness insurance, natural disaster benefits, and many others.
Analysis By Insurance Cover
Based on insurance cover, the market is segmented into Single-Trip Travel Insurance, Annual Multi-Trip Travel Insurance, and Long-Stay Travel Insurance. Among these, annual multi-trip travel insurance is dominating the segment accounting for more than 40% market share in 2019, followed by single trip travel insurance. Multi-trip travel insurance protects travelers against unexpected costs, such as flight delays, cancellations, lost luggage, and others. The growing trend of business expansion across the globe and favorable government policy is propelling the demand. Many air operators offering low-cost tickets for international travel along with the rising trend of holidays, and rising disposable income is catalyzing the market growth.
Analysis By Application
By application, the market is bifurcated into domestic and international travel. International travel is dominating the segment, followed by domestic travel and is expected to maintain its dominancy over the forecast period. Increasing abroad trips due to a rise in per capita income and higher spending on traveling, with increasing exposure to the unique travel destination, drives the demand for international trips. Also, growing medical tourism dedicated to cosmetic and non-cosmetic surgeries promotes international travel.
Analysis By End User
Based on end-user, the market is segmented into Senior Citizens, Education Travelers, Business Travelers, Family Travelers, and Others. Among these, the family travelers segment dominated the end-user segment in 2019, followed by business travelers. This segment's growth is mainly responsible for rising disposable income coupled with a tendency to spend on travel and leisure activities. With a higher desire to spend time with family, encourages the exploration of new places, cultures, and lifestyles, and further promotes the family travelers. The ongoing trend of spending a family vacation abroad countries is another factor propelling the growth of this segment.
Analysis By Region
The travel insurance market is analyzed across the region of North America, Asia-Pacific, Europe, Latin America, and Middle East& Africa. From a geographical perspective, the travel insurance market is dominated by Europe. Europe is a region of the worlds’ best tourist destinations. The regional market is driven by growing vacation trips and mandatory rules for travelers. Europeans are fond of going on vacation. Europeans believe that vacations reduce stress, improve physical and mental health, and increases productivity. In many European countries, vacations are mandatory. Businesses close for a month in July or August when their employees go on vacation. The majority of countries require compulsory travel insurance. Austria, Belgium, Cuba, Denmark, Finland, Germany, Hungary, Iceland, Lithuania, Malta, Netherlands, Sweden, and Switzerland are the countries where travel insurance is mandatory.
The Asia Pacific houses a vast travel industry and lucrative holiday destinations. As far as the current scenario is concerned, the penetration in the region is low, but considering the growing segment of travelers and changing trends, there are tremendous opportunities opening ways for growth. The increasing disposable income, increase in business travel, better transportation, regulation mandate, and low travel cost are encouraging market growth.
Market Segmentation covered in the Report:
By Insurance Cover
- Medical Expenses
- Trip Cancellation
- Trip Delay
- Property Damages
- Single-Trip Travel Insurance
- Annual Multi-Trip Travel Insurance
- Long-Stay Travel Insurance
By End User
- Domestic Travel
- International Travel
- Senior Citizens
- Education Travelers
- Business Travelers
- Family Travelers
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
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