Travel Insurance Market by End-user and Geography: Global Opportunity Analysis and Industry Forecast, 2021-2025

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NEW YORK, June 22, 2022 /PRNewswire/ — The Travel Insurance Market is segmented by geography (North America, Europe, APAC, MEA, and South America). 37% of the market’s growth will originate from North America during the forecast period. US and Canada are the key markets for travel insurance in North America. Market growth in this region will be slower than the growth of the market in APAC regions. The majority percentage of the population in North America goes on annual travel vacations within the country or abroad. As many opt for adventure sports, their trip risks remain high. Therefore, vendors in the market offer special and customized policies to meet customer needs. This has expanded the demand for travel insurance products as the industry is trying to mitigate the risks associated with traveling, such as weather delays, mechanical delays, and medical emergencies. There is also a rise in the demand for travel insurance from students relocating to the US for higher education.

Technavio has announced its latest market research report titled Travel Insurance Market by End-user and Geography – Forecast and Analysis 2021-2025

Track Pricing, Supply, Demand, Trade, and Distribution Scenario along with Key Customers. View at Special Pricing

The Travel Insurance Market value is set to grow by USD 12.61 billion, progressing at a CAGR of 9% from 2020 to 2025, as per the latest report by Technavio

Travel Insurance Market End User Outlook (Revenue, USD bn, 2020-2025)

  • Senior citizens – size and forecast 2020-2025

  • Business travel – size and forecast 2020-2025

  • Family travel – size and forecast 2020-2025

  • Others – size and forecast 2020-2025

The travel insurance market share growth by the senior citizens will be significant during the forecast period. Travel insurance plans for senior citizens are meant for elderly travelers. These plans cover various health and age-related aspects of senior citizens that are excluded from basic travel insurance benefits. Travel insurance for senior citizens can safeguard trips by covering overseas medical expenses, theft of belongings, and more, depending on the coverage which will drive the demand for this segment during the forecast period.

Travel Insurance Market Scope

Report Coverage

Details

Page number

120

Base year

2020

Forecast period

2021-2025

Growth momentum & CAGR

Accelerate at a CAGR of 9%

Market growth 2021-2025

$ 12.61 billion

Market structure

Fragmented

YoY growth (%)

7.56

Regional analysis

North America, Europe, APAC, MEA, and South America

Performing market contribution

North America at 37%

Key consumer countries

US, China, Germany, UK, and Canada

Competitive landscape

Leading companies, competitive strategies, consumer engagement scope

Companies profiled

Allianz Group, American Express Co., American International Group Inc., AXA Group, Insure and Go Insurance Services Limited, MH Ross, Seven Corners Inc., Travel Insured International, USI Insurance Services, and Zurich Insurance Co. Ltd.

Market Dynamics

Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and future consumer dynamics, market condition analysis for forecast period,

Customization preview

If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

Travel Insurance Market: Growing Tourism and Business Travels to Drive the Market Growth

The travel and tourism industry has witnessed substantial growth in recent years on account of inflating disposable incomes, rising business travel, and the easy availability of online travel bookings. These factors are bolstering the global travel insurance market growth. Moreover, governments of numerous countries, such as the US, the UK, Australia, Germany, and Belgium, have made it mandatory to attach travel insurance documents while applying for visas, which is also contributing to market growth. Major market vendors such as AXA and Allianz Group are incorporating digital tools, such as application program interface (API), artificial intelligence (AI), data analytics, and global positioning system (GPS), for improving distribution systems and providing personalized user experience. Some insurers are offering insurance cover for COVID-19-related medical expenses for inbound travelers and extending the expiration period without adding extra charges in their policies. Coverage of medical emergencies, trip cancelation, and trip interruption during the pandemic has become essential. Hence, the growth of the tourism industry will fuel gross premiums for the travel insurance market during the forecast period.

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Travel Insurance Market: Insurance for Unconventional Expenses will be a Key Trend of the Market in Future

Vacation rentals are popular, especially in the US. Thus, when a tourist opts for vacation rentals, the person gets accommodation in furnished houses, apartments, or resort condominium complexes. Most vacation rentals have standardized cancelation policies (flexible, moderate, and strict), which protect both the guest and host alike and generate little or negligible reimbursements. Some of the top websites where people can list and choose rentals include Airbnb, Flip Key, VRBO, Home Away, Roomorama, House Trip, and Wimdu. If a tourist book rental is offered by these vendors, then the travel is covered under the travel insurance policy. In such rentals, the cost includes the expenses, deposits, and cancelation fee. Therefore, if a tourist (including a family member) falls ill during a vacation, he or she needs to show valid proof of the vacation rental and out-of-the-pocket expenses to claim reimbursements.

Some of the Major Travel Insurance Companies:

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

  • Allianz Group

  • American Express Co.

  • American International Group Inc.

  • AXA Group

  • Insure and Go Insurance Services Limited

  • MH Ross

  • Seven Corners Inc.

  • Travel Insured International

  • USI Insurance Services

  • Zurich Insurance Co. Ltd.

The travel insurance market is fragmented and the vendors are deploying growth strategies such as organic and inorganic strategies to compete in the market.

Travel Insurance Market: Lack of Awareness and Delayed Services to Challenge the Market Growth

Lack of awareness about insurance as a protection tool and inadequate details about the types of insurance products pose a major threat to the market. This often keeps potential clients away, which is one of the primary reasons for the slow growth of the market. The insurance service providers often offer services at a slow pace. The claim settlement process is a vital component in the whole process flow as it is crucial for the goodwill of the insurance company. Often the insurance companies are not agile in processing claims, especially processing documents through various departments in a foreign country. This has eroded client trust in travel insurance products and makes travelers reluctant to spend on such products. Moreover, in emerging countries, most insurance firms do not provide adequate insurance coverage for trip cancelation, especially for high-end customized trips that cost between $1,000 and above. This is another biggest challenge in the travel insurance market because some customers pay higher premiums; however, companies may not provide journey coverage for established international destinations.

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Insurance Brokerage Market in Europe by Type and Geography – Forecast and Analysis 2022-2026: The insurance brokerage market share in Europe share is expected to increase by USD 7.60 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 5.98%. Find More Exclusive Research Insights Here

Table of Contents

1 Executive Summary

2 Market Landscape

  • 2.1 Market ecosystem

  • 2.2 Value chain analysis

3 Market Sizing

  • 3.1 Market definition

  • 3.3 Market size 2020

4 Five Forces Analysis

  • 4.1 Five force summary

  • 4.6 Threat of rivalry

  • 4.7 Market condition

5 Market Segmentation by End-user

  • 5.1 Market segments

6 Customer landscape

7 Geographic Landscape

8 Drivers, Challenges, and Trends

  • 8.1 Market drivers

  • 8.2 Market challenges

  • 8.3 Market trends

9 Vendor Landscape

  • 9.1 Overview

  • 9.2 Vendor landscape

  • 9.3 Landscape disruption

10 Vendor Analysis

  • 10.1 Vendors covered

  • 10.3 Allianz Group

  • 10.6 AXA Group

  • 10.8 MH Ross

  • 10.9 Seven Corners Inc.

11 Appendix

  • 11.1 Scope of the report

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contact

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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

Technavio (PRNewsfoto/Technavio)

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