Travel Insurance Market Revenue To Cross Million-Dollar Milestone By 2026
Travel insurance plans are designed to cover costs arising from losses, and also to reduce risks associated with unexpected events encountered while traveling. Prudour analysis of various segments across markets in North America, Europe, China, Japan, India, Middle East & Africa, South America, and Rest of the World reveals that revenue from the global travel insurance market will increase at a Compound Annual Growth Rate (CAGR) of over 4.5%. Single-trip insurance being the most preferred insurance plan has emerged the major revenue contributor and growth driver of the global market.
Global Travel Insurance Market Dynamics:
Increasing business travelers and increasing tourism are major factors driving growth of the global travel insurance market. According to the United Nations World Tourism Organization (UNWTO) Barometer, the number of international tourists grew by 3.9% to reach a total of 1.2 Bn in 2016 as compared to 2015 numbers. It is further expected to reach 1.8 Bn by 2030. Moreover, according to, The Global Business Travel Association (GBTA), around 79% business travelers purchased corporate travel insurance plans for medical emergencies and 60% opted for travel insurance plan for luggage protection in 2015. Increasing uncertain events and terrorist attacks globally are other factors expected to further boost demand for travel insurance in the global market. Travel insurance policies consider terrorism as a coverable reason. Travel insurers are providing benefits in various scenarios involving acts of terror, including scenario in which a terrorist attack occurs at a destination within 30 days of scheduled arrival.
Travel insurance market revenue to hike over $18B by 2026:
• Single trip insurance segment revenue projected to reach over $6,500M in 2026.
• Annual multi-trip insurance segment projected to be valued at well over $7,500M in 2026.
• Mandatory travel insurance for obtaining VISA in countries such as the US, France, Belgium, Luxembourg, Norway, Finland, and Poland.
• Polices for foreign visitors to have travel insurance prior to entry or buy travel insurance upon arrival in UAE and Malaysia.
• The current trend of more frequent, but shorter breaks instead of the traditional summer holiday.
• Reducing airfares to further boost demand for multi-trip policies.
These are some of the insights regarding the future of the global travel insurance market and other aspects and factors driving market growth currently, which were obtained during extensive study and analysis conducted by market research firm, Prudour.
Going by an optimistic scenario, revenue from the global travel insurance market is projected to increase at a CAGR of 5.7 % and reach a value of $21,162M in 2026, while likely and conservative scenarios indicate CAGR of 4.7% and value of $18,244M, and CAGR of 4.0% and value of $17,00M respectively for the same forecast period.
Global Travel Insurance Market: Segmental Snapshot
The market report has been segmented on the basis of type, application, and region/country. The types segment includes single trip, annual multi-trip, and long stay. The application segment includes senior citizens, education travelers, backpackers, business travelers, and family travelers. The regions/countries covered in the analysis are North America, Europe, China, Japan, Middle East & Africa, India, South America, and Rest of the World.
By type: The annual multi-trip segment accounted for highest revenue share contribution as compared to other type segment, and is expected to maintain its dominance over the forecast period. The annual multi-trip segment is expected to register a CAGR of over 5.0% between 2017 and 2026.
By application: The business travelers segment accounted for highest revenue share in the global market in 2017, and is projected to continue contributing the highest revenue share as compared to that of other application segments by 2026. The business travelers segment is projected to register highest CAGR of over 5% during the forecast period.
By region/country: The China travel insurance market is expected to register highest CAGR of over 5.0% in terms of revenue during the forecast period. The market in Europe accounted for major revenue share in the global travel insurance market in 2016, and is expected to witness significant growth over the forecast period.
The market in Europe has been estimated to account for the highest revenue share of over $5,500M in 2018 and is expected to register a moderate CAGR of 4.7% over a nine-year period. This projected high revenue growth can be attributed to the high penetration of travel insurance offerings and an increasing number of individuals who are nearing retiree age opting to go places. The number of outbound tourists from Europe was 596.1M in 2016 and is projected to increase to 842M in 2030.
North America is the second-largest market currently and is estimated to account for a revenue share of 28.3% in the global market in 2017. This is projected to increase at a CAGR of 4.6% over the next nine years, attributed to the presence of prominent players such as CSA Travel Protection, Seven Corners Inc., TravelSafe Insurance, Travel Insured International, coupled with increasing presence of domestic travel insurance providers in countries in the region. The number of outbound tourists from North America was 96M in 2016 and is projected to increase to 198Mn in 2030. Favorable government regulations related to travel insurance, coupled with increasing incidences of loss of luggage, medical emergencies, and natural calamities reported in countries in the region are expected to continue to boost adoption of travel insurance in future.
The market in the Asia Pacific is also expected to witness significant revenue growth between 2016 and 2026, particularly driven by travel insurance sales in China and Japan. The number of outbound tourists from the Asia Pacific was 317M in 2016 and is projected to increase to 535M in 2030. The increasing presence of prominent international insurance firms in the country, as well as a rising number of domestic insurance providers, are major factors anticipated to fuel the growth of the China travel insurance market. Meanwhile, government regulations in Japan that mandate travel insurance for all international travelers are expected to continue to fuel the growth of the Japan travel insurance market.
The market in the Middle East & Africa accounted for a revenue share of 4.6% in the global travel insurance market in 2016 and was valued at over $520M, which is further projected to reach a value of around $800M in 2026. This projected growth is attributed to an increasing number of tourists visiting African countries, especially for adventure trips in the Sub-Saharan deserts and rain forests in the Congo. This is also projected to open up revenue opportunities for prominent international players in the market in the region to expand the market footprint and revenue share.