New York, United States, Jan. 09, 2024 (GLOBE NEWSWIRE) -- Travel insurance is designed to cover unanticipated expenses while traveling overseas or domestically. Typically, travel insurance provides coverage for emergency medical bills, trip cancellations, aircraft delays, lost luggage, public liability, and other costs incurred to reduce the risks associated with travel. In addition, based on coverages, travel insurance providers provide different plans for covering travel expenditures and losses. In addition, numerous intermediaries in the distribution channel, such as insurance aggregators, banks, and insurance brokers, provide consumers with various options to evaluate goods and pricing, recommend suitable plans, and so on. In addition, international travel insurance is required for visitors visiting Thailand, Cuba, Antarctica, Schengen nations, the United States, and the United Arab Emirates.
Increased smartphone and internet usage for online travel insurance purchases via direct airline websites, online travel agents (OTAs), and company websites & applications are gaining momentum and contributing to the expansion of the online travel insurance market. In addition, a surge in tourism due to a rise in disposable income, the convenience of internet travel bookings, package holidays, and extensive coverage of holidays, among other factors, contribute to the market's growth as tourism increases, numerous incidents, including travel cancellations, the loss of bags and essential papers, and medical issues. To mitigate these risks, consumers elect to purchase travel insurance, which is a significant market driver.
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Convenient Shopping due to Online Comparison Sites to Drive the Global Travel Insurance Market
With the rising use of the Internet for online comparison shopping, customer preferences are shifting toward a more seamless experience when purchasing travel insurance. The online portals, such as direct airline websites, online travel agents (OTAs), and company websites and applications, drive the growth of the online insurance market by increasing customer awareness. In addition, these online portals often offer restricted alternatives from a single firm, making it easier for travelers to evaluate and purchase travel insurance coverages from the market's highest-rated suppliers. As a result, the growth of the travel insurance premium during the forecast period is fueled by the factors underlying online comparison shopping. In 2019, TravelInsurance.com performed a study predicting that online comparison sites will be the industry's fastest-growing sales channel.
New Technological Developments in the Travel Insurance Industry to Provide Opportunities for the Global Travel Insurance Market
According to Straits Research, "The global travel insurance market size was valued at USD 22780 million in 2021 and is estimated to reach an expected value of USD 48665 million by 2030, registering a CAGR of 8.8% during the forecast period (2022 – 2030)." Increasing technologies such as geolocation, application program interface (API), artificial intelligence (AI), data analytics, blockchain, and big data are providing innovative opportunities for insurers in the market. With these technological advancements, it is anticipated that travel insurance distribution platforms will become more efficient at providing seamless coverage at the point of sale.
Moreover, digital transformation enables travel insurance firms to provide customers with highly customized user experiences. In addition, to preserve their market position, insurers are contemplating using big data analytics to generate substantial premiums. In addition, technology assists with data collecting, customer-specific demands, risk calculation, and fraud detection. Therefore, technological improvements that facilitate quick accessibility and give comfortable travel insurance options are anticipated to create profitable market prospects for insurers.
Key Highlights
- In terms of insurance cover, the global travel insurance market is segmented into single-trip travel insurance, annual multi-trip travel insurance, and long-stay travel insurance. The single-trip travel insurance segment was the highest contributor to the market and is estimated to grow at a CAGR of 7.8% during the forecast period.
- Based on distribution channels, the global travel insurance market is classified into insurance intermediaries, insurance companies, banks, insurance brokers, and insurance aggregators. The insurance intermediaries segment was the highest contributor to the market and is estimated at a CAGR of 7.9% during the forecast period.
- Based on end-users, the global travel insurance market is segmented into senior citizens, education travelers, business travelers, family travelers, and others. The family travelers segment was the highest contributor to the market and is estimated to grow at a CAGR of 7.1% during the forecast period.
Regional Insights
Region-wise, the travel insurance market growth is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific was the highest revenue contributor and is estimated to grow at a CAGR of 11.3%. It is one of the fastest-growing regions in the world due to its emerging economies, expanding population, and middle-income population segment. The travel insurance industry is particularly robust in nations with significant GDP growth and rising per capita income, such as China, Japan, India, Indonesia, Korea, Australia, Hong Kong, Taiwan, New Zealand, and Singapore. In addition, senior adults and baby boomers are selected for insurance intermediaries due to the long-term relationship and trust connected with travel insurance transactions. The services and knowledge of travel insurance policies provided by insurance intermediaries are superior.
Europe is the second largest region. It is estimated to reach an expected value of USD 12145 million by 2030, registering a CAGR of 6.4%. A rise in the number of elderly citizens traveling internationally and domestically, as well as an increase in the amount spent on business travel, are among the causes driving the expansion of the European travel insurance industry. In addition, a boost in the popularity of multigenerational travel contributes to expanding the travel insurance market in the region. In Europe, single-trip policies have the highest share in the travel insurance market. In addition, the increase in corporate travelers and older citizens is anticipated to increase the demand for annual and long-stay travel insurance coverage.
Competitive Landscape
The key players profiled in the global travel insurance market analysis are Allianz Group, American International Group, Inc., Assicurazioni Generali SPA, AXA, Insure and Go Insurance Services Limited, Seven Corners, Inc., Travel Insured International, TravelSafe Insurance, USI Insurance Services, and Zurich Insurance Co. Limited
Market News
- September 2022 - Allianz is recognized as a Sustainable Insurer by Dow Jones Sustainability Index.
- July 2022 - Zurich Insurance Group's (Zurich) health and wellbeing business has announced a collaboration with Polar Electro, a leader in wearable sports and heart rate and health technology, with customers of both companies now able to gain access to services that will help them reach their wellbeing goals. The collaboration will initially start with six countries – Brazil, Italy, Portugal, Spain, the UK, and Ireland – and will expand to other countries in due course where Polar and LiveWell are present.
Global Travel Insurance Market: Segmentation
By Insurance Cover
- Single-trip Travel Insurance
- Annual Multi-trip Travel Insurance
- Long-Stay Travel Insurance
By Distribution Channel
- Insurance Intermediaries
- Insurance Companies
- Banks
- Insurance Brokers
- Insurance Aggregators
By End User
- Senior Citizens
- Education Travelers
- Business Travelers
- Family Travelers
- Others
By Region
- North America
- Europe
- Asia-Pacific
- Lamea
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