The global travel insurance market reached a value of USD 13.9 Billion in 2021.Travel insurance provides financial protection for expenses or losses incurred due to unexpected events while domestic or overseas travel. It generally covers the costs of lost or stolen belongings, emergency medical care, accidental death, and trip cancellation and interruption. It takes into effect from the day of travel until the insured reaches back home. Nowadays, several companies are providing travel insurance with 24/7 emergency services, such as replacing lost passports, cash wire assistance and re-booking cancelled flights. They are also offering customization options depending on the geographical location and as per the requirements of the insured individuals.
The COVID-19 pandemic brought the world to a halt, with unforeseeable and unexpected implications affecting global economies, people’s lives, communities, and livelihoods too, and the risk of layoffs and global recession was at an all-time high. Additionally, the travel and tourist industry has endured severe economic slowdowns as a result of harsh travel restrictions and quarantine regulations around the world. As per a report published by the World Tourism Organization (UNWTO) in January 2021, international visitors in 2020 fell dramatically from the previous year of 2019. The worldwide travel insurance market was affected by such causes. The market gained traction in 2021 after the gradual relaxation of the lockdowns imposed.
Travel companies and industry experts always advise travellers to purchase travel insurance, less cautious travellers historically ignore this advice. The pandemic’s tumultuous journey over the last two years has made the travel industry unpredictable. The cancellation and abandonment of trips are now commonplace whilst a need for medical assistance is now a genuine possibility. There is now a general acceptance from travellers that when they book their holiday, there is a certain probability that they could experience these issues and will need to make a claim.
Consumer sentiment also suggests that travel insurance is a ‘must have’ purchase in today’s marketplace. With many travellers stung by the pandemic’s impact on previous holiday plans, travel insurance can alleviate the stress of such issues and ensure tourists are not left out-of-pocket due to unforeseen circumstances. The continuance of the pandemic will ensure that claims for medical expenses, quarantine and cancellations will be required for many tourists.
In the last decade, the tourist industry across the world has seen consistent development. There are many countries in the world, which are becoming travel hub and gaining more popularity among millennials. Increased package holidays, disposable income, broad media coverage of various holiday types, and easy internet travel bookings have all contributed to the tourism industry’s expansion. In addition, there are many students who are shifting to other countries for further studies and programs, along with that, several universities and colleges are also offering scholarship programs, which are attracting students from the world. As the tourist industry expands, more cases of crucial documents, lost luggage, natural disasters, and medical issues are reported.
In 2021, the Asia Pacific travel insurance market accounted for about 25% of the revenue share impelled by increasing government investments in tourism projects. The government intends to develop measures for a full-fledged inbound recovery while boosting travel demand, depending on the situation with the coronavirus and the recovery of the travel industry.
The travel insurance market is fragmented with the presence of many international companies. Some tourism-based countries have made travel insurance mandatory for travellers. And this will lead to an organic and long-term growth of the travel insurance industry. Some of the major players are Travelex, Allianz, InsureMy Trip, Nationwide, HTH, AIG.
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The COVID-19 pandemic brought the world to a halt, with unforeseeable and unexpected implications affecting global economies, people’s lives, communities, and livelihoods too, and the risk of layoffs and global recession was at an all-time high. Additionally, the travel and tourist industry has endured severe economic slowdowns as a result of harsh travel restrictions and quarantine regulations around the world. As per a report published by the World Tourism Organization (UNWTO) in January 2021, international visitors in 2020 fell dramatically from the previous year of 2019. The worldwide travel insurance market was affected by such causes. The market gained traction in 2021 after the gradual relaxation of the lockdowns imposed.
Key Market Trends
Increasing Demand for Travel Insurance
Travel companies and industry experts always advise travellers to purchase travel insurance, less cautious travellers historically ignore this advice. The pandemic’s tumultuous journey over the last two years has made the travel industry unpredictable. The cancellation and abandonment of trips are now commonplace whilst a need for medical assistance is now a genuine possibility. There is now a general acceptance from travellers that when they book their holiday, there is a certain probability that they could experience these issues and will need to make a claim.
Consumer sentiment also suggests that travel insurance is a ‘must have’ purchase in today’s marketplace. With many travellers stung by the pandemic’s impact on previous holiday plans, travel insurance can alleviate the stress of such issues and ensure tourists are not left out-of-pocket due to unforeseen circumstances. The continuance of the pandemic will ensure that claims for medical expenses, quarantine and cancellations will be required for many tourists.
Expansion of Tourism Industry
In the last decade, the tourist industry across the world has seen consistent development. There are many countries in the world, which are becoming travel hub and gaining more popularity among millennials. Increased package holidays, disposable income, broad media coverage of various holiday types, and easy internet travel bookings have all contributed to the tourism industry’s expansion. In addition, there are many students who are shifting to other countries for further studies and programs, along with that, several universities and colleges are also offering scholarship programs, which are attracting students from the world. As the tourist industry expands, more cases of crucial documents, lost luggage, natural disasters, and medical issues are reported.
In 2021, the Asia Pacific travel insurance market accounted for about 25% of the revenue share impelled by increasing government investments in tourism projects. The government intends to develop measures for a full-fledged inbound recovery while boosting travel demand, depending on the situation with the coronavirus and the recovery of the travel industry.
Competitive Landscape
The travel insurance market is fragmented with the presence of many international companies. Some tourism-based countries have made travel insurance mandatory for travellers. And this will lead to an organic and long-term growth of the travel insurance industry. Some of the major players are Travelex, Allianz, InsureMy Trip, Nationwide, HTH, AIG.
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Table of Contents
1 INTRODUCTION
4 MARKET DYNAMICS
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Travelex
- Allianz
- InsureMy Trip
- AIG
- HTH
- Axa
- Seven Corners Inc
- Travel Safe Insurance
- Trip Mate
- Nationwide
- Travel Guard*
Methodology
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