Travel Insurance Market By Type (Single Trip, Annual Multi-trip, Long Stay) By Application (Senior Citizens, Education Travelers, Backpackers, Business Travelers, Family Travelers) and Region - Global Forecast to 2026
10 April 2018
The global travel insurance market was valued at nearly US$ 12 billion in 2017, and is expected to register a CAGR of 4.7%. The report offers in-depth insights, revenue details, and other vital information regarding the global travel insurance market and the various trends, drivers, restraints, opportunities, and threats in the target market till 2026. The report also offers insightful and detailed information regarding the various key players operating in the global travel insurance market, and their financials, apart from strategies, acquisitions & mergers, and market footprint. The global travel insurance market is segmented on the basis of type, application, and region/country.
Travel insurance plans are designed to cover costs and losses and reduce the risks associated with unexpected events encountered while traveling. It is a useful method of protection for those traveling domestically or abroad.
Global Travel Insurance Market Dynamics:
Increasing business travelers and increasing tourism are major factors driving growth of the global travel insurance market. According to the United Nations World Tourism Organization (UNWTO) Barometer, the number of international tourists grew by 3.9% to reach a total of 1.2 Bn in 2016 as compared to 2015 numbers. It is further expected to reach 1.8 Bn by 2030. Moreover, according to, The Global Business Travel Association (GBTA), around 79% business travelers purchased corporate travel insurance plans for medical emergencies and 60% opted for travel insurance plan for luggage protection in 2015. Increasing uncertain events and terrorist attacks globally are other factors expected to further boost demand for travel insurance in the global market. Travel insurance policies consider terrorism as a coverable reason. Travel insurers are providing benefits in various scenarios involving acts of terror, including scenario in which a terrorist attack occurs at a destination within 30 days of scheduled arrival.
Low penetration rate of travel insurance coverage in developing and underdeveloped countries is a major factor hampering growth of the global travel insurance market. In addition, lack of awareness about travel insurance policies among travelers and low transparency in travel insurance policies are other factors restraining growth of the global travel insurance market.
Adoption of travel insurance for unconventional expenses especially in developed countries such as the US, Germany, France, etc. is the current trend in the global market. Moreover, changing travel patterns and rising awareness among individuals are factors expected to create lucrative opportunities for major players in the global market over the next 10 years.
Preferred travel insurance policies by individuals across the globe are insurance with medical coverage, luggage protection, and trip covers. The medical insurance is the commonly purchased travel insurance cover.
Market analysis by type:
On the basis of type segmentation, the annual multi-trip segment is expected to contribute major revenue share and is expected to maintain its dominance over the forecast period. The annual multi-trip segment witnesses a highest CAGR of over 5.0%. The single-trip segment closely follows the annual multi-trip segment in terms of revenue share, and is expected to witness considerable growth over the forecast period.
Market analysis by application:
Among the application segments, the business travelers segment is expected to dominate with over 25% of revenue share contribution in the global market in 2017, and is expected to continue its dominance over the forecast period. Increasing business trips and rising preference for suitable policies with last minute flight booking or cancellation are major factors attributed to growth of the business travelers segment. The senior citizens segment is expected to witness significant growth in terms of revenue over the forecast period.
Market analysis by region/country:
Among the regions, the market in Europe is estimated to account for major revenue share of over 40% in the global travel insurance market in 2017, and is estimated to continue its dominance over the forecast period. The North America market is estimated to account for second-largest revenue share in the global market in 2017.
The dominance of Europe market can be attributed to increasing outbound tourist from countries such as Germany, the UK. According to World Tourism Organization (UNWTO), the number of international outbound tourist from Europe were 583.8 million in 2015. Presence of major travel insurance providers such as Allianz Global Assistance, AXA, Insure & Go Insurance Services Limited, etc. in this region is another factor driving growth of the Europe travel insurance market. Moreover, stringent government regulations mandating travel insurance for international travellers is another factor further propelling driving growth of the Europe travel insurance market.
The North America market accounted for second-highest revenue share in the global travel insurance market in 2017, and is expected to maintain its position over the forecast period. High awareness among individuals regarding benefits of travel insurance policies, favorable government regulations, and increasing incidence of baggage loss or misplacing, medical emergencies are major factors driving growth of the North America travel insurance market. Moreover, according to the US Travel Insurance Association in 2016, US citizens spent around US$ 2.4 Bn on all types of travel insurance, and over 0.021 Bn of travel insurance policies were provided by US Travel Insurance Association member companies.
The china travel insurance market is expected to witness highest growth in terms of revenue in the global market over the forecast period. Increasing number of senior citizen travelers, increasing business travelers, and increasing presence of international travel insurance providers in China are major factors driving growth of the China travel insurance market.
The market in India accounts for lowest revenue share in the global market. Lack of awareness of travel insurance policies among individuals, and people in India still believe that travel insurance is a waste of money and is not necessary. This are some major factors hampering growth of the India travel insurance market.
The market in South America accounted for around 2% share in the global travel insurance market in terms of revenue. Increasing presence of travel insurance service providers, coupled with domestic players expanding their presence in countries such as Brazil in the region are factors driving growth of the South America travel insurance market.
Global Travel Insurance Market segmentation, by type:
- Single Trip
- Annual Multi-trip
- Long Stay
Global Travel Insurance Market segmentation, by application:
- Senior Citizens
- Education Travelers
- Business Travelers
- Family Travelers
Global Travel Insurance Market segmentation, by region/country:
- North America
- Middle East & Africa
- South America
- Rest of the World
- CSA Travel Protection
- USI Affinity
- Seven Corners Inc.
- TravelSafe Insurance
- MH Ross
- Allianz Global Assistance
- Travel Insured International
- American International Group, Inc.
- Insure & Go Insurance Services Limited
- Berkshire Hathaway Specialty Insurance
- Travelex Group
- Tokio Marine HCC Medical Insurance Services Group
- Aviva plc
- American Express Company
- Munich RE
- MAPFRE ASSISTANCE
- Sompo Japan Nipponkoa Insurance Inc.
- Ping An Insurance Company of China, Ltd.
- Starr Companies
- 1.0 Chapter 1
- 1.1 Preface
- 1.2 Assumptions
- 1.3 Abbreviations
- 2.1 Report Description
- 2.1.1 Market Definition and Scope
- 2.2 Executive Summary
- 2.2.1 Market Snapshot, By Type
- 2.2.2 Market Snapshot, By Application
- 2.2.3 Market Snapshot, By Region
- 2.2.4 Opportunity Map Analysis
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