The global travel insurance market is flourishing, with a projected value of USD 17.8 billion in 2021, poised for substantial growth at a CAGR of 15.4% from 2022 to 2030. This surge is primarily driven by the escalating demand for tourism and the rapid advancements in technology. Furthermore, the increasing number of travel laws and regulations imposed by governments on both travelers and insurance providers is significantly contributing to the rising demand for travel insurance worldwide.
A notable example of this trend is Allianz Global Assistance, a Canada-based travel assistance and insurance provider, which launched its COVID-19 assistance and insurance coverage in May 2020. This comprehensive coverage offers up to USD 1,000,000 for emergency treatment related to COVID-19, in addition to other essential benefits. The company leverages its extensive distribution network, comprising over 9,000 insurance brokers and travel agency partners, to deliver these plans to a wide range of customers.
Travel insurance is a valuable tool that provides coverage for a variety of expenses and damages associated with travel. These policies typically include protection for trip cancellation, medical emergencies, travel delays, and luggage loss. The post-pandemic period has witnessed a significant surge in demand for travel insurance, driven by the stricter rules and regulations imposed by governments and regulatory authorities on travelers, particularly concerning visa policies. For instance, in January 2021, Singapore implemented a mandatory travel insurance requirement for visitors, stipulating a minimum coverage of USD 30,000 for COVID-19-related medical care and hospitalization.
Gather more insights about the market drivers, restrains and growth of the Travel Insurance Market
Distribution Channels Segmentation Insights
The insurance market is primarily divided into five major distribution channels: insurance intermediaries, insurance companies, banks, insurance brokers, and insurance aggregators.
Insurance Companies
In 2021, insurance companies held the largest share of the market, accounting for 34.8% of the revenue. This trend is expected to continue throughout the forecast period.
The growth of this segment is driven by two key factors:
1. Consolidating Risk: As more and more individuals and businesses seek insurance coverage, insurance companies are able to pool and manage risk more effectively. This allows them to offer competitive premiums and a wider range of products.
2. Actuarial Science: Insurance companies utilize advanced actuarial techniques to assess the likelihood of specific events and calculate appropriate premiums. This precise risk assessment enables them to maintain profitability while providing essential coverage.
Banks
While insurance companies dominate the market, the banks segment is poised for significant growth, with an expected CAGR of 18.0% during the forecast period. This rapid expansion is fueled by the increasing integration of insurance services into banking offerings. Banks across regions like Europe, Asia, and Australia are actively selling and underwriting insurance products. This strategic move allows banks to diversify their revenue streams and offer comprehensive financial solutions to their customers.
Order a free sample PDF of the Travel Insurance Market Intelligence Study, published by Grand View Research.
