Published on : Friday, April 12, 2019
Travel insurance market is expected to grow at 7.9% CAGR touching U.S. dollar 35.1 billion by 2025 as per Adroit Market Research. Business travel insurance market is expected to foresee the fastest growth of 8.0 per cent between 2018 and 2025. The U.S. travel insurance market size is estimated to go beyond U.S. dollar 8 billion by 2025.
In 2017, size of global travel insurance market was U.S. dollar 18.9 billion and is projected to increase to U.S. dollar 35.1 billion with a CAGR of 7.9% in terms of revenue in the coming years.
There is usage of data analytics to predict risks and formulate precise contingency plans. For example, insurers can monitor weather conditions and notify their customers in advance, to enable them to plan their trips accordingly.
If the tourism sector is growing, so is the natural calamities, medical emergencies and loss of luggage. To alleviate the risk related with occurrences, various travelers are choosing travel insurance.
Tourism is the biggest component of international trade in services, comprising about 30 per cent of the total share. Asia-Pacific was leading the travel insurance industry in the year 2017 with a market share of 44.9 per cent, followed by North America which occupied 30 per cent of the pie.
Medical expenses segment dominated the overall travel insurance industry. This segment is expected to generate revenues of U.S. dollar 10.8 billion by the end of 2025.