Travel Insurance Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Travel Insurance Market is projected to experience substantial growth, expanding from USD 32.14 Billion in 2025 to USD 76.54 Billion by 2031 at a CAGR of 15.56%. Travel insurance functions as a financial safeguard, reimbursing policyholders for unforeseen losses such as medical emergencies, trip cancellations, and lost luggage during domestic or international journeys. This market expansion is primarily driven by the recovery of global tourism, increased consumer awareness of health risks following the pandemic, and the implementation of mandatory insurance requirements for visa applications in several countries. Illustrating this upward trend, the U.S. Travel Insurance Association reported that consumer spending on travel protection in the United States reached $5.56 billion for the previous year in 2025.

However, the market faces a significant hurdle due to the rising cost of claims associated with global medical inflation. Insurers are contending with higher payouts for medical treatments abroad, which necessitates increased premium rates. These higher costs may negatively impact affordability for budget-conscious travelers and limit market penetration in price-sensitive sectors, potentially impeding the broader expansion of the industry.

Market Drivers

The resurgence of international tourism and robust post-pandemic travel demand serves as the primary catalyst for the Global Travel Insurance Market. With borders fully reopened and consumer confidence stabilizing, there has been a notable increase in trip planning and interest in financial protection, particularly among younger demographics who prioritize safety. This shift is expanding the consumer base; according to Berkshire Hathaway Travel Protection, the intent to purchase travel insurance among Gen Z travelers increased by 24 percent in 2025 compared to the prior year. Furthermore, Allianz Partners noted in the 'European Vacation Confidence Index - Summer 2025' that 75 percent of Europeans planned to travel between June and September, highlighting the strong momentum in tourism that fuels policy sales.

Additionally, escalating international healthcare costs and medical inflation are significantly shaping market dynamics by increasing claim severity and driving premium adjustments. As medical expenses rise globally, the financial risk for uninsured travelers becomes prohibitive, reinforcing the necessity of comprehensive medical coverage. Insurers observe a direct correlation between these rising costs and claim disbursements, necessitating higher coverage limits. According to Squaremouth’s January 2025 report, travel insurance payouts rose to an average of $2,609, a 37 percent increase driven largely by higher trip and medical costs, justifying the need for robust emergency protection.

Market Challenges

A major obstacle hindering the growth of the Global Travel Insurance Market is the escalating cost of claims resulting from global medical inflation. As healthcare costs surge worldwide, insurers are forced to absorb significantly higher payouts for overseas medical treatments and emergency repatriations. This financial pressure requires an upward adjustment in pricing models, leading to increased premium rates for travelers. Such price hikes directly reduce the affordability of travel protection plans, particularly for budget-conscious consumers and families, thereby dampening the adoption rate of these essential financial products.

Recent industry data underscores the magnitude of this financial burden. In 2025, the Association of British Insurers reported that member companies paid out £472 million in travel insurance claims for the preceding year, with medical expenses alone accounting for £262 million of that total. This substantial expenditure highlights the operational strain on insurers. Consequently, as coverage becomes prohibitively expensive for a wider segment of the population, market penetration slows, effectively countering the growth potential otherwise offered by the resurgence in global tourism.

Market Trends

The adoption of parametric insurance is fundamentally transforming the market by shifting from traditional indemnity models to automated, event-triggered payouts. This mechanism enables insurers to settle claims immediately upon verifiable triggers, such as flight delays or weather disruptions, thereby eliminating long processing times and administrative burdens. This efficiency is driving the adoption of premium products among travelers seeking convenience and rapid liquidity. According to a May 2025 report by Blink Parametric, the integration of these automated solutions led to an 11 percent increase in the take-up of premium products offering flight disruption cover.

Simultaneously, the market is witnessing a decisive shift toward mobile-first claims management and integrated digital travel companions. Insurers are transitioning from being static policy providers to active journey partners by embedding real-time safety alerts, telemedicine access, and instant claim filing capabilities directly into mobile applications. This evolution meets the modern traveler's expectation for immediate support and seamless digital interaction. Allianz Partners highlighted this trend in December 2025, recording a 250 percent increase in travel app downloads between 2024 and 2025, demonstrating a rapid consumer pivot toward app-centric insurance ecosystems.

Key Players Profiled in the Travel Insurance Market

• Allianz
• American International Group, Inc.
• AXA
• ASSICURAZIONI GENERALI S.P.A.
• USI Insurance Services, LLC
• battleface
• Insure & Go Insurance Services Limited
• Seven Corners Inc.
• Travel Insured International
• Zurich
• Delphi Financial Group, Inc.
• Ping An Insurance (Group) Company of China, Ltd.

Report Scope

In this report, the Global Travel Insurance Market has been segmented into the following categories:

Travel Insurance Market, by Coverage Type:

• Single Trip Travel Insurance
• Annual Multi-trip Travel Insurance
• Long Stay Travel Insurance

Travel Insurance Market, by Provider:

• Banks
• Insurance Companies
• Insurance Intermediaries
• Others (Insurance Aggregators
• etc.)

Travel Insurance Market, by End User:

• Education Travelers
• Business Travelers
• Family Travelers
• Others (Senior Citizens
• etc.)

Travel Insurance Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Travel Insurance Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.