Global travel insurance market to reach $119 billion by 2030, report
The global travel insurance market size was valued at $12.38 billion in 2020, and is projected to reach $119.31 billion by 2030, growing at a compound annual growth rate (CAGR) of 26.1% from 2021 to 2030. This is according to a report by Research and Markets.
Travel insurance is a type of insurance that accounts for any unanticipated or undesired losses that can occur when travelling (either internationally or domestically). Typical travel insurance policies normally are designed to cover any medical emergencies during the period of travel, whereas more comprehensive travel insurance policies may also include trip cancellation, lost luggage, flight delays, public liability, and among other unanticipated charges during the period of travel.
Moreover, travel insurance can provide the traveler with a sense of security and safety while visiting a foreign land. However, with the slowdowns in the travel and hospitality segment caused by the outbreak of the COVID-19 pandemic, the global travel insurance industry also experienced significant shrinkage during the period. Although, with the average travel scene returning back on the levels of pre-pandemic levels, the travel insurance market is also expected to grow in the coming years.
The growth of the global travel insurance market is driven by factors such as rising tourism demands post the pandemic are boosting the growth of the travel insurance market. In addition, government-mandated travel policies are further fueling the growth of the travel insurance market. However, the low penetration of insurance policies limits the growth of this market. Conversely, new technological developments for the travel insurance industry are expected to provide numerous opportunities for the expansion of the travel insurance market during the forecast period.
The global travel insurance market is segmented into coverage type, distribution channel, end user, and region. Depending on coverage type, the market is bifurcated into single-trip travel insurance and annual multi-trip travel insurance. On the basis of distribution channel, it is segregated into insurance intermediaries, insurance companies, banks, insurance brokers, and insurance aggregators. As per end user, it is differentiated into senior citizens, education travelers, business travelers, family travelers, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.