Travel Insurance Market
The market for Travel Insurance was estimated at $41.6 billion in 2024; it is anticipated to increase to $96.7 billion by 2030, with projections indicating growth to around $195 billion by 2035.
Report Summary
Market Data
Methodology
Table of Contents
Global Travel Insurance Market Outlook
Revenue, 2024
$41.6B
Forecast, 2034
$169B
CAGR, 2025 - 2034
15.1%
The Travel Insurance industry revenue is expected to be around $47.9 billion in 2025 and expected to showcase growth with 15.1% CAGR between 2025 and 2034. The impressive CAGR highlights the strong significance of Travel Insurance in today's rapidly globalizing world. Key driving factors behind this growth include increased awareness of the potential risks associated with travel, such as trip cancellations, lost luggage, or medical emergencies. An increase in international travel, coupled with rising healthcare costs globally, has reiterated the importance and ongoing relevance of Travel Insurance in medical protection and risk mitigation efforts while abroad. The emergence of digital platforms in the space has amplified accessibility, increasing the markets scope and consumer reach, thus driving demand further.
Travel Insurance, at its core, provides coverage for unexpected events that may occur during travel. These primarily include remedial costs for medical emergencies, costs incurred due to trip cancellation or delay, and reimbursement for lost or damaged luggage. More comprehensive plans also cover legal liabilities, accidental death or disability, and additional services like emergency evacuation. A trend noticed in recent times is the growing affinity for bespoke or customized insurance plans tailoring to the specific needs of the traveler.
Market Key Insights
- The Travel Insurance market is projected to grow from $41.6 billion in 2024 to $170 billion in 2034. This represents a CAGR of 15.1%, reflecting rising demand across International Travel, Domestic Travel and Adventure Travel.
- AXA SA, Allianz SE, American International Group or AIG are among the leading players in this market, shaping its competitive landscape.
- U.S. and UK are the top markets within the Travel Insurance market and are expected to observe the growth CAGR of 13.6% to 18.1% between 2024 and 2030.
- Emerging markets including Vietnam, Kenya and Peru are expected to observe highest growth with CAGR ranging between 10.6% to 15.9%.
- Transition like The Shift towards Digitalization is expected to add $6 billion to the Travel Insurance market growth by 2030.
- The Travel Insurance market is set to add $128 billion between 2024 and 2034, with manufacturer targeting Business & Education End-Users projected to gain a larger market share.
- With Emerging tourism trends, and Technology-driven innovation, Travel Insurance market to expand 308% between 2024 and 2034.
Opportunities in the Travel Insurance
There is also a significant to expand travel insurances reach by forming strategic alliances with travel agencies. By integrating insurance policy sales into travel booking procedures, both insurance companies and travel agencies will benefit. Strategic collaboration can facilitate the penetration of travel insurance into untouched markets and demographics, establishing it as a necessity rather than a choice
Growth Opportunities in North America and Asia Pacific
In the realm of travel insurance, North America portrays a significantly competitive market, backed by a population that is highly aware and meticulous about travel-related uncertainties. Fueled by technological advancements and an increased propensity to mitigate risks associated with travel, the demand for travel insurance is burgeoning in this region. The market landscape reveals a plethora of opportunities, such as diversification of travel insurance packages and alignment with technological interfaces for a seamless customer experience. The stiff competition, largely among key players including Allianz, AIG and Manulife, imparts a dynamic impetus to the market, necessitating innovation and strategic partnerships. Primary drivers in this region include an increased propensity to travel and high adoption of digital platforms for insurance purchase
Simultaneously, the Asia Pacific region is emerging as a promising market for travel insurance. Characterized by a rapidly evolving tourism sector, increasing outbound travels, and growing consciousness regarding the importance of travel insurance, the region showcases immense growth potential. Opportunities in the Asia Pacific extend towards addressing the needs of a segment that is witnessing an exponential rise in solo and adventure travelers, who are more prone to risks. Competitive landscape includes prominent players like AIA, Sompo Holdings, and Dai-chi Life, pushing the market boundaries by offering customized solutions.
Market Dynamics and Supply Chain
01
Driver: Emerging Tourism Trends, and Growing Cross-Border Travel
The global surge in tourism has also invariably triggered an increased demand for travel insurance. The rise of Eco-tourism, adventure-based, and experiential travel introduced added risks and unique requirements, making travel insurance essential. These insurance policies often cover unforeseen circumstances like flight cancellations, personal accidents, medical emergencies, or baggage loss, thus enhancing the overall traveling experience. The accelerated pace of globalization is also causing more people to travel across borders for business, studies, or leisure. This cross-border mobility has also raised concerns about the potential risks travelers may also encounter abroad, therefore driving the uptake of travel insurance. This trend is also expected to significantly fuel the growth of the global travel insurance market.
Insurance providers are also leveraging technology to streamline the process of purchasing travel insurance policies. With the adoption of InsureTech, providers offer personalized plans based on user profiles and travel patterns employing AI and data analytics. This offers customers an easy and hassle-free experience that encourages further use of travel insurance.
02
Restraint: Unawareness of Travel Insurance Benefits
Despite the growing significance of travel insurance, a large number of travelers remain oblivious to its benefits. This lack of awareness, often, leads to the under-utilization of travel insurance products and services, thus restricting the market growth. For instance, travelers often misunderstand the extent of medical coverage provided by travel insurance, leading them to, either, overlook purchasing it, or underestimating its utility in case of high-cost medical emergencies abroad.
03
Opportunity: Exploiting the Digital Landscape and Catering to Evolving Consumer Needs
With the advent of technology and the rise of digital platforms, there is a vast arena unexplored in the field of Travel Insurance. The digital landscape presents a tremendous for tapping into a larger customer base and providing them with tailor-made travel insurance plans. Online platforms allow companies to offer a more personalized customer experience, which includes simplifying the purchase process and providing prompt customer service, thereby fostering loyalty and retaining existing customers
The changing dynamics of the travel industry and the evolving needs of the modern consumer present an exciting for growth in travel insurance. Innovations leading to unique, versatile, and flexible insurance policies that cater to specialized travel - such as space tourism, adventure sports, or eco-tourism - can help to capture a larger share of the market.
04
Challenge: Stringent Regulatory Frameworks
Concurrently, stringent regulatory frameworks and complex claim processes create significant challenges in the travel insurance market, effectively acting as s to its growth. The opaque insurance claim process coupled with restrictions and exceptions often create an off-putting experience for travelers.
Supply Chain Landscape
1
Product Innovation & Development
AXAAllianz
2
Product Marketing
Berkshire Hathaway Travel ProtectionTravelex
3
Distribution & Sales
Thomas Cook IndiaFlight Centre
4
Customer Service & Support
American International GroupInsureandGo
1
Product Innovation & Development
AXAAllianz
2
Product Marketing
Berkshire Hathaway Travel ProtectionTravelex
3
Distribution & Sales
Thomas Cook IndiaFlight Centre
4
Customer Service & Support
American International GroupInsureandGo
Use Cases of Travel Insurance in International & Domestic
International Travel : It is a well-established fact that international travel is one of the most commonly utilized applications for travel insurance. Most individuals traveling abroad prefer comprehensive travel insurance plans to cover unexpected situations such as medical emergencies, trip cancellation, or lost baggage. Top players providing this of insurance include Allianz and American Express, who are recognized for their comprehensive policies and strong customer support.
Adventure Travel : Adventure travel is a growing segment where travel insurance can be deemed essential. Because of the inherent risks related to adventurous activities such as mountaineering or scuba diving, specialized travel insurance plans cater to this niche group, offering inclusive emergency medical assistance and evacuation. Companies such as World Nomads and IMG Global have established a strong position in this market, specifically due to their travel insurance options tailored for adventure seekers.
Domestic Travel : Even for domestic journeys, travel insurance has become popular, protecting travelers against trip interruption, cancellation, and other potential issues that can affect travel plans. While it may seem unnecessary for domestic trips, factors such as weather-related disruptions or sudden illness make this application quite essential. Top providers in this application include Travel Guard and Generali, boasting robust policy options for domestic travelers.
Business Travel : Business travel is another significant application for travel insurance. Corporations and businesses often mitigate risks associated with their employees travel by investing in comprehensive travel insurance.
Recent Developments
In recent years, the travel insurance market has witnessed significant changes that have redefined its landscape. Following the aftermath of global disruption due to the Covid-19 pandemic, interest in travel insurance has soared, brought about by a newfound awareness of the unpredictability inherent in travel plans. Amid this backdrop, insurance providers are swiftly adapting by offering innovative coverages to meet changing consumer needs.
December 2024 : Allianz Global announced its expansion into the Asia-Pacific market, offering comprehensive travel insurance services
October 2024 : AXA introduced its innovative Pay-per-Day travel insurance scheme, allowing flexibility for customers to choose coverage duration
August 2024 : WORLDNOMADS launched its AI-based predictive modeling tool to calculate risk and premium for its travel insurance products.
Impact of Industry Transitions on the Travel Insurance Market
As a core segment of the Core BFSI industry,
the Travel Insurance market develops in line with broader industry shifts.
Over recent years, transitions such as The Shift towards Digitalization and Advent of Customization have redefined priorities
across the Core BFSI sector,
influencing how the Travel Insurance market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
The Shift towards Digitalization
The travel insurance industry has been significantly impacted by the push towards a more digitalized experience. The advancements in digital technology have changed the way travel insurance companies operate, from usage of mobile apps to online consultations and claim settling. This shift has led to a more streamlined process, leading to quicker results and increased customer satisfaction. Digitalization has not only improved operations but has also enhanced the customer experience by providing them with more information, options, and the ability to make quick decisions, thereby driving greater customer engagement and loyalty.
02
Advent of Customization
Driven by the growing consumer demand for personalized experiences, travel insurance providers have started offering customizable insurance plans. This trend signals a significant departure from the traditional onesizefitsall approach. Customizable plans allow travelers to tailor their insurance based on their specific needs, catering to their unique travel plans, level of risk comfort, health conditions, and more. As a result, customers feel more appreciated and valued, leading to enhanced customer experience and increased retention rates.