Travel Insurance Market Expected to Grow at a CAGR of 24.7% by 2031
Travel Insurance Market
“In the last decade, the tourist industry across the world has seen consistent development. There are many countries in the world that are becoming travel hubs and gaining more popularity among millennials.”
NEW CASTLE, DELAWARE, UNITED STATES, January 17, 2024 /EINPresswire.com/ — The travel insurance market is expected to experience significant growth, with a projected CAGR of 24.7% by 2031. This growth can be attributed to the increasing demand for safer travel and tourism as the fear of COVID-19 subsides. Local government policies favoring the growth of the travel insurance market have also contributed to its expansion. For example, in June 2021, the Turkey Tourism Promotion and Development Agency (TGA) mandated tourist destinations in the country to provide proper health safety measures and sanitary environments to their customers. As a result, these destinations started including travel insurance plans in their regular charges to better prepare for potential COVID-19 outbreaks. Such trends are expected to create lucrative opportunities for market expansion in the coming years.
Allied Market Research has published a report titled “Travel Insurance Market by Insurance Cover, Distribution Channel, End User, and Age Group: Global Opportunity Analysis and Industry Forecast, 2021-2031.” According to the report, the global travel insurance industry was estimated to be worth $14.2 billion in 2021 and is projected to reach $124.8 billion by 2031, growing at a CAGR of 24.7% from 2022 to 2031. The report provides a comprehensive analysis of market trends, key segments, investment opportunities, value chain, competitive landscape, and regional outlook.
Key Drivers, Restraints, and Opportunities
The growth of the global travel insurance market is driven by factors such as increased tourism due to rising disposable income, easy online travel bookings, package vacations, and robust holiday coverage. However, the lack of awareness about travel insurance among people hinders market growth to some extent. Technological advancements such as geo-location, application program interface (API), artificial intelligence (AI), data mining, and global positioning system (GPS) have opened up lucrative opportunities in the industry.
Impact of COVID-19
The travel and tourism industry was severely affected by the strict lockdown measures imposed by governments worldwide. This had a negative impact on the global travel insurance market, especially during the initial period. However, the market has now recovered and is back on track.
Single-Trip Travel Insurance Segment to Dominate
Among different insurance covers, the single-trip travel insurance segment held the largest share in 2021, accounting for around three-fifths of the global travel insurance market. This is because these policies offer customized coverage with additional premium costs for activities such as winter sports, climbing, bungee jumping, and diving. They are particularly suitable for family travelers who prefer to go on vacation once or twice a year. On the other hand, the long-stay travel insurance segment is expected to grow at the fastest CAGR of 28.7% during the forecast period. This type of insurance provides comprehensive coverage compared to conventional travel insurance policies, including medical costs, lost luggage, and trip cancellations or postponements.
Insurance Intermediaries Segment to Maintain Dominance
In terms of distribution channels, the insurance intermediaries segment accounted for the highest share in 2021, contributing to nearly one-third of the global travel insurance market. This is because insurance intermediaries are integrating software such as global distribution systems (GDS) to facilitate transactions between service providers in the travel industry. On the other hand, the insurance aggregators segment is expected to grow at the fastest CAGR of 27.9% from 2022 to 2031. Insurance aggregators collect data on various insurance policies and present them on a single online portal, allowing individuals to compare products, prices, and terms and conditions offered by different insurance companies.
Family Travelers Segment to Retain Dominance
Among different end-users, the family travelers segment accounted for the largest share in 2021, holding more than one-fourth of the global travel insurance market. This can be attributed to the increasing trend of intergenerational travel among families. The business travelers segment is expected to grow at the fastest CAGR of 28.1% by 2031 due to the rapid increase in national and international business travel.
Asia-Pacific Leads the Market
In terms of regional analysis, Asia-Pacific contributed to the largest share of the global travel insurance market in 2021, accounting for nearly two-fifths of the market. The region is also expected to grow at the fastest CAGR of 28.1% during the forecast period. The rise in awareness about the significant advantages of travel insurance in developing nations presents high growth opportunities in the region.
Key Players in the Market
The key players in the global travel insurance market include Assicurazioni Generali S.P.A., Aviva, Zurich, Just Travel Cover, American International Group, Inc., PassportCard, Trailfinders Ltd., Staysure, Insurefor.com, and AXA. These players have implemented various strategies such as expansion, new product launches, and partnerships to increase their market share and strengthen their position in the industry.
About the Author
“In the last decade, the tourist industry across the world has seen consistent development. There are many countries in the world that are becoming travel hubs and gaining more popularity among millennials.” – Allied Market Research
Conclusion
The global travel insurance market is poised for significant growth in the coming years, driven by increasing demand for safer travel and tourism. Local government policies favoring the inclusion of travel insurance plans have further boosted market expansion. The single-trip travel insurance segment dominates the market, while insurance intermediaries maintain a strong presence. Asia-Pacific leads in terms of market share and growth potential. With key players implementing strategic initiatives, the travel insurance market is expected to thrive in the forecast period.
George Barham, an accomplished journalist and avid gambling enthusiast, serves as the esteemed Editor-in-Chief at fly-to-australia.com, Australia’s leading source for comprehensive gambling news and insights. With an unwavering passion for both the written word and the ever-evolving world of betting and gaming, George brings a wealth of knowledge and expertise to the helm of our editorial team.
