Travel Insurance Market

Travel Insurance Market Analysis, By Coverage Type (Single Trip, Annual/Multiple Trips), By End-use Application (Individuals, Groups), By Trip Type (Domestic, International), and Region - Global Market Insights 2023 to 2033

Analysis of Travel Insurance Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Travel Insurance Market Outlook (2023-2033)

The global travel insurance market is estimated at US$ 48.2 billion in 2023, with a projected market valuation of US$ 96.6 billion for 2033, expanding rapidly at a CAGR of 7.2% over the next ten years.

The global insurance market was valued at US$ 5 trillion in 2022 and is projected to double its current value over the decade. Digital transformation, growing focus on personalized premiums, and integration of advanced technology (Artificial Intelligence, Internet of Things, and automation) will be the leading factor driving market expansion.

The travel industry has a direct impact on the demand for travel insurance across the world. A travel insurance company covers the risks that occur during travel, such as loss of passport, baggage, and money. They also provide coverage for bookings that are canceled by the customer. Apart from these services, travel insurance companies assist customers in claiming their insurance and finding a hospital in case of an emergency.

With the significant rise in the travel industry over the past few years due to the increasing disposable income of people and easy availability of online travel booking, these services are seeing substantial demand globally.

Travel insurance services are easily available on online platforms that are utilized for travel bookings. This approach is helping customers reach travel insurance companies easily and is enhancing consumer awareness regarding insurance.

  • Short Term (2023-2026): In the short term, the market is expected to rise at a high growth rate as relief on travel is been offered by governments in various countries post-COVID pandemic. With the increase in travel and tourism, the market for travel insurance has also gained momentum.
  • Medium Term (2026-2029): In the medium term, increasing people's awareness about insurance is expected to be a major factor resulting in the expansion of the travel insurance market. The entrance of new market players in the industry with customized service offerings will also aid market expansion.
  • Long Term (2029-2033): The ease of getting travel insurance through online apps and ticket booking platforms is expected to be a major factor driving market growth. Also, strict regulations by governments on travel insurance while traveling is another factor that will stimulate market growth.

The market in East Asia is forecasted to expand at the highest CAGR of 8.2% throughout the forecast period, followed by South Asia and Europe.

Report Attributes


Market Size (2022A)

US$ 45 Billion

Estimated Market Value (2023E)

US$ 48.2 Billion

Forecasted Market Value (2033F)

US$ 96.6 Billion

Global Market Growth Rate (2023-2033)

~7.2% CAGR

North America Market Share (2022)


East Asia Market Growth Rate (2023-2033)

~8.2% CAGR

United States Market Growth Rate (2023-2033)

~7% CAGR

Key Companies Profiled

  • Allianz Travel Insurance
  • Travelex Insurance Services
  • World Nomads Travel Insurance
  • Tata AIG General Insurance Company Limited
  • Seven Corners
  • HTH Travel Insurance
  • Generali Global Assistance
  • IMG Travel Insurance
  • AXA Assistance USA
  • Berkshire Hathaway Travel Protection
  • Nationwide Insurance
  • Aviva
  • AA Travel Insurance
  • Staysure
  • Virgin Money Travel Insurance
  • Cover For You
  • Flexicover Travel Insurance

Know thy Competitors

Competitive landscape highlights only certain players
Complete list available upon request

Market Factors Affecting Travel Insurance Space

“Positive Related Government Initiatives”

Travel insurance is important while traveling to a foreign country where companies cover medical emergencies, flight delays, loss or damage of baggage, and other issues. The governments of various countries such as the United States, UAE, New Zealand, and Schengen countries have mandated travel insurance while traveling to their countries, which is escalating the demand for travel insurance services. These counties have mandated attaching travel insurance documents while applying for a visa.

Also, in many countries, government and regulatory authorities have laid down strict regulations on travelers regarding visas post-COVID-19 pandemic.

  • For instance, in 2021, the government of Singapore imposed a regulation to have travel insurance for travelers covering COVID-19-related medical care and hospitalization.

With the presence of strict government norms, the need for travel insurance is increasing at a significant pace worldwide.

Integration of Advanced Technology

To improve current travel insurance platforms, travel insurance service providers are opting for cutting-edge technologies such as artificial intelligence (A.I.), data analytics, and machine learning with GPS, which is resulting in sizable profit creation for them. To enhance their services and fulfill clients’ expectations, several travel insurance companies are seeking to strengthen their connections with insurers. The purpose of these upgrades is to enhance the experience for customers.

Market players are also taking initiatives regarding the integration of Blockchain technology. Blockchain technology will efficiently streamline the claims process by automating touchpoints from First Notice of Loss/First Notification of Loss to claim payments. This will be beneficial for market players for hassle-free claims processing and client engagement, which will drive market expansion during the forecast period.

“Lack of Awareness Regarding Travel Insurance Policies”

A major factor restraining the growth of the market is the lack of understanding and awareness about travel insurance among many people. Eliminating market-wide knowledge gaps for travel insurance is necessary to address this issue and drive the uptake of the product. Also, misinformation about premium costs, the value proposition of travel insurance, offered coverage, and advantages of opting for travel insurance are observed, which is limiting market growth to some extent.

Additionally, the market's expansion is being constrained by consumers' ignorance about the premium costs and coverages of travel insurance. The total sum assured, existing medical issues, age of the assured, and frequency of travel are just a few examples of the variables that can influence the premium rate that a traveler needs to pay for both, domestic and international travel insurance.

Travel insurance market size, share, demand and sales forecast report by Fact.MR

Image depicts expected total addressable market value of US$ 48.2 billion. Domestic trips are projected to hold a leading share of 54% in the market.

Country-wise Insights

United States to Hold Leading Share of Global Market

The travel insurance market is highly fragmented in the United States. With a substantial number of business travels observed in the country, demand for travel-related insurance services is significantly high. Travel insurance companies here offer coverage for the loss of luggage, medical emergencies, natural calamities, and other business travel.

  • As per a study by the National Household Travel Survey (NHTS), in America, more than 405 million long-distance business trips take place every year, depicting 16% share of all long-distance travel in the world.

Also, the country witnesses a significant number of inbound travel every year supported by the increase in disposable income and packaged holidays. People prefer online booking services that offer a one-click option to opt for travel insurance. This is resulting in the procurement of a significant number of travel insurance policies in the United States.

Market in China to Expand Rapidly

The growing travel and tourism industry in China is a leading factor driving market growth in the country. China is the second-leading market in the world with a large contribution to GDP from the travel and tourism industry. Also,

China is one of the world’s largest outbound tourist markets, encouraged by the newly rich middle class and the mitigation of restrictions on travel & tourism by the Chinese government, stimulating the travel industry in the country. These factors are prominently driving the demand for travel insurance in China.

China is a business hub where the migration rate is significantly high. The country sees a substantial number of business travel. Post-pandemic, the country has observed an increase in business travel, and the government has mandated regulations on travel insurance. Owing to this factor, travel insurance services are expected to see a jump over the forecasted period in China.

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Category-wise Insights

Single Trip Travel Insurance Demand to Be High

Under coverage type, single trip coverage holds a leading share of 71% in the global market. In comparison with multiple trips, single trips are observed in significant numbers worldwide where people plan for trips and travel once or twice a year. People who are not frequent travellers opt for single-trip travel insurance coverage.

A single trip is the preferred option for people who travel once or twice a year, where they save money on costly multi-trip travel insurance. Increasing travel activities among the middle-income population worldwide with an increase in disposable income is a major factor driving the demand for travel insurance covering single trips.

Domestic Trips to Account for Major Market Share

In comparison with international trips, domestic trips and more in number across the world, which is a major factor behind the demand for travel insurance for domestic trips. Government initiatives on the promotion of domestic travel to enhance economic growth is a major factor resulting in revenue generation in the travel insurance industry from domestic trips.

However, international travel insurance is more costly than domestic travel insurance, resulting in an almost equivalent share in revenue contributing to the travel insurance market.

  • As per a study by the UNWTO World Tourism Barometer, international travel increased by threefold from January to July 2022, which is a jump of 172% in comparison to the same period during 2021.

This indicates an increase of around 60% of pre-pandemic levels. Owing to this factor, revenue from insurance for international trips is expected to rise at the highest CAGR over the next ten years.

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Competitive Landscape

Key players in the travel insurance market are Allianz Travel Insurance, Travelex Insurance Services, World Nomads Travel Insurance, Tata AIG General Insurance, Seven Corners, HTH Travel Insurance, Generali Global Assistance, IMG Travel Insurance, AXA Assistance USA, Berkshire Hathaway Travel Protection, Nationwide Insurance, Aviva, AA Travel Insurance, Staysure, Virgin Money Travel Insurance, Cover For You, and Flexicover Travel Insurance.

The market is highly fragmented with the presence of established companies and many new players entering the market. Increasing people's awareness about travel insurance and the easy availability of these services on online platforms are creating a highly competitive scenario in the market.

To sustain in the industry and deal with a highly competitive business environment, market players are making strategic moves such as the expansion of service offerings and partnerships.

For instance :

  • In September 2022, Insurtech Startup InsuranceDekho enhanced its service offerings by introducing travel insurance on its online platform. The company has partnered with leading insurance organizations such as Reliance General, Bajaj Allianz, ICICI Lombard, and others to offer travel insurance services.
  • In April 2022, online platform and AXA Partners announced the expansion of a new travel insurance product in the European region that was introduced in the U.K. in 2021. It offers a wide range of benefits such as cancellation, baggage cover, medical emergency cover, and others.

Fact.MR has provided detailed information about the providers of travel insurance positioned across regions, revenue growth, and service offering expansion, in the recently published report.

Segmentation of Travel insurance Industry Survey

  • By Coverage Type :

    • Single Trip
    • Annual/Multiple Trip
  • By Trip Type :

    • Domestic
    • International
  • By End-use Application :

    • Individual
    • Group
  • By Region :

    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia & Oceania
    • Middle East & Africa

- FAQs -

What is the estimated value of the global travel insurance market?

The global travel insurance market stands at US$ 48.2 billion in 2023.

At what rate is the demand for travel insurance likely to increase?

The global travel insurance market is anticipated to rise at a CAGR of 7.2% during the forecast period 2023-2033.

Which country is set to witness high demand growth during the forecast period?

China’s market is expected to grow to the highest CAGR of 8.3% through 2033.

What will the value of the travel insurance market be by the end of 2033?

The market for travel insurance services is projected to reach a value of US$ 96.6 billion by 2033.

Travel Insurance Market