The travel insurance market is set to grow from its current market was valued at over 21 billion in 2022 to 52.8 billion by 2032, according to a new research report by Global Market Insights, Inc.
Travel insurance market will record more than 9.5% CAGR from 2023 to 2032, owing to the rising travel freedom. Travelers are increasingly recognizing the importance of safeguarding their trips with comprehensive travel insurance. There is a growing awareness of the need for travel protection, which has been significantly heightened by the unforeseen disruptions experienced during the COVID-19 pandemic.
Moreover, the rise of adventure and experiential travel has led to a surge in demand for specialized coverage, particularly for high-risk activities. According to a recent study, in 2021, adventure tourism in the U.S. added more than USD 40 billion to the economy and nearly 51% of adventure solo travelers were women.
The overall travel insurance market is divided based on type, trip, end-use, and region.
The domestic segment is predicted to witness remarkable growth through 2032 owing to the increasing trend of exploring one’s own backyard. As more travelers opt for local adventures, the demand for domestic travel insurance has surged. This type of coverage offers protection against unforeseen events that could disrupt domestic trips, ranging from trip cancellations to medical emergencies. The convenience and affordability of domestic travel insurance are attracting a wider audience.
The banks segment is anticipated to generate high revenues for the market by 2032 as many financial institutions now offer travel insurance products as part of their services, whether it’s bundled with credit cards or offered as standalone policies. This trend is driven by the recognition of the synergies between banking and insurance services, offering customers a one-stop solution for their financial and travel protection needs. The reputation of banks for their reliability and trustworthiness positions them as preferred providers among the consumers, adding to industry value.
Europe travel insurance market will witness significant demand over 2023 and 2032. Europe, known for its rich history, diverse cultures, and ease of travel between countries, has become a hub for tourists worldwide. As travelers seek comprehensive coverage that aligns with their diverse travel experiences, the insurers are tailoring products to cater to these specific needs. The continent’s vibrant tourism industry, coupled with increased awareness about the benefits of travel insurance, will drive the expansion of the regional market.