The global travel insurance market size was valued at $19.2 billion in 2019 and is projected to reach $39.3 billion by 2027, growing at a CAGR of 17.4 percent from 2020 to 2027.
The market is evaluated based on its regional penetration, explaining the performance of the market in each regional market covering provinces such as North America (United States, Canada and Mexico), Europe (Germany, France, UK, Russia and Italy), Asia-Pacific (China, Japan, Korea, India and Southeast Asia), South America (Brazil, Argentina, Colombia), Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria and South Africa).
The key players operating in the global travel insurance industry include Allianz Group, American International Group Inc., Assicurazioni Generali S.P.A, AXA, Insure & Go Insurance Services Limited, Seven Corners Inc., Travel Insured International, Travel Safe Insurance, USI Insurance Services, and Zurich Insurance Co. Limited.
Several intermediaries in distribution channel such as insurance aggregators, banks, insurance brokers providing consumers with various options to compare products and prices, suggest suitable policies, and others. In addition, travel insurance providers offer different plans by covering costs and losses depending on coverages in the policy.
Convenient options provided to the consumers for travel insurance purchases via online comparison-shopping sites such as direct airline sites and online travel agencies (OTAs), company websites & applications, and others fuel the travel insurance market growth.
In addition, rise in tourism due to increase in disposable income, easy online travel bookings, package holidays, extensive coverage of holidays, and others also drive the market growth.
Moreover, increase in tourism led to several incidences such as trip cancellations, loss of luggage & important documents, medical emergencies, and others take place. To mitigate these risks, consumers opt for travel insurance, which is a significant driving factor for the travel insurance market.
Travel insurance providers in the market are adopting several model acts, laws & regulations including development of prospective legislation, and enforcement activity, accelerating the growth of travel protection products and services in the industry.
However, lack of awareness towards travel insurance policies, low consumer experiences in terms of coverages, premium rates, and services by third-party providers of travel insurance remains a primary concern, as a result, these factors limit the growth of travel insurance premium in the market.
On the contrary, insurers are expected to enhance existing distribution platforms of travel insurance to accelerate productivity with the help of technologies such as geo-location, application program interface (API), artificial intelligence (AI), data analytics, and global positioning system (GPS), among others. As a result, these factors are expected to create travel insurance market opportunity in the upcoming years.
The insurance intermediaries sector dominated the travel insurance industry in 2019 and is projected to maintain its dominance during the forecast period. Due to several intermediaries upgrading their offerings by incorporating software such as global distribution system (GDS), which enables transactions between travel industry service providers such as airlines, hotels, car rental companies, and travel agencies.
The report focuses on the growth prospects, restraints, and trends of the travel insurance market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the travel insurance market.