Global travel insurance market to hit $48.2B by 2023, CAGR of 7.2% expected

Friday, February 9, 2024

Between 2018 and 2022, the global travel insurance market saw a growth of 3.9% and is forecasted to reach a valuation of US$ 48.2 billion in 2023. With an expected Compound Annual Growth Rate (CAGR) of 7.2% from 2023 to 2033, the market is on the brink of rapid expansion.

Travel insurance plays a crucial role for travelers, providing coverage for issues such as lost luggage, medical emergencies, and ticket cancellations. The significant growth of the travel sector, along with rigorous regulatory requirements for insurance during travel, propels the travel insurance industry forward. Countries including the United States, Russia, and The United Arab Emirates have implemented strict regulations, boosting the demand for travel insurance globally. The travel sector directly influences the demand for travel insurance worldwide, with insurance companies offering protection against risks like passport loss, baggage and money loss, and cancellation of bookings. These companies not only cover these risks but also assist in insurance claims and emergency medical situations.

The adoption of digital technology in the travel insurance sector has made obtaining coverage easier through online platforms, allowing customers to compare prices easily. Moreover, the future integration of technologies such as automation, artificial intelligence, and the Internet of Things (IoT) is expected to significantly contribute to the industry’s growth.

Market Highlights:

• Individuals account for 66% of the market share among end-use applications.
• A projected CAGR of 7.2% is expected from 2023 to 2033.
• East Asia is forecasted to witness the highest growth rate of 8.2% during the forecast period among all regions.
• The market experienced a historical growth rate of 3.9% from 2018 to 2022.

Market Segmentation Overview:
Coverage Types: Single Trip, Annual/Multiple Trip
Trip Types: Domestic, International
End-use Applications: Individual, Group
Geographic Regions: North America, Latin America, Europe, East Asia, South Asia and Oceania, Middle East and Africa.

Competitive Landscape:
The travel insurance market features key players such as Allianz Travel Insurance, Travelex Insurance Services, and World Nomads Travel Insurance among others. The market is characterized by fragmentation, with a mix of established companies and new entrants, creating a competitive environment driven by increasing consumer awareness and the availability of online services.

Recent Developments:

• InsuranceDekho, an insurtech startup, expanded its offerings with travel insurance on its platform in September 2022, collaborating with major insurers like Reliance General and Bajaj Allianz.
• Trip.com and AXA Partners introduced a new travel insurance product in Europe in April 2022, initially launched in the U.K. in 2021, offering extensive benefits including cancellation and medical emergency cover.

This analysis provides a comprehensive overview of the global travel insurance market, including data from 2018 to 2022 and forecasts for 2023 to 2033, based on coverage type, end-use application, trip type, and geographic regions.

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