Travel Insurance: Market Overview
Definition:
Travel insurance is a type of insurance coverage designed to protect travelers from risks associated with traveling, such as trip cancellations, medical emergencies, lost luggage, flight accidents, and other losses incurred while traveling domestically or internationally.
Key Coverage Areas:
Trip Cancellation/Interruption: Reimbursement for prepaid, non-refundable travel expenses if a trip is canceled or interrupted due to covered reasons.
Medical Expenses: Covers emergency medical treatments and hospitalizations during travel.
Emergency Evacuation: Covers transport to the nearest adequate medical facility or repatriation to the home country.
Baggage Loss/Delay: Compensation for lost, stolen, or delayed baggage.
Travel Delay: Reimbursement for additional expenses incurred due to delayed flights or other transport.
Accidental Death and Dismemberment (AD&D): Provides a benefit for accidental death or severe injury during travel.
Market Trends:
Rising Demand for Post-COVID Coverage: Travelers are seeking pandemic-related protection, including trip cancellation due to illness or quarantine.
Digital Distribution Growth: Online channels and travel booking integrations are driving sales.
Customization & Modular Policies: Insurers are offering more flexible plans tailored to individual travel needs.
Adoption of Embedded Insurance: Travel platforms are increasingly bundling insurance during ticket or hotel bookings.
Key Players:
Allianz Travel
AXA Assistance
Berkshire Hathaway Travel Protection
Travel Guard (AIG)
Generali Global Assistance
InsureMyTrip
Travelex Insurance Services
Market Outlook:
2024 Estimated Market Size: USD 20.4 Billion
Forecast (2025–2034): Projected to reach USD 34.1 Billion by 2034
CAGR: ~5.3%