Passenger Accident Insurance Market Report 2025

The passenger accident insurance market size has grown strongly in recent years. It will grow from $13.23 billion in 2024 to $14.12 billion in 2025 at a compound annual growth rate (CAGR) of 6.7%. The growth during the historic period is attributed to increased public transport usage, heightened awareness of personal safety, rising cross-border travel, stronger government emphasis on public transport safety, and growing demand for affordable travel insurance.

The passenger accident insurance market size is expected to see strong growth in the next few years. It will grow to $18.08 billion in 2029 at a compound annual growth rate (CAGR) of 6.4%. In the forecast period, growth is expected to be driven by the expanding reach of digital insurance platforms, rising demand for on-trip microinsurance, greater adoption of personalized coverage, an expanding middle-class population in emerging markets, and increased collaboration between transport providers and insurers. Key trends anticipated include advancements in real-time policy issuance technology, innovations in claims automation and fraud detection, progress in AI-powered risk assessment models, investments in mobile-first insurance apps, and new developments in embedded insurance offerings.

The rising air passenger traffic is expected to drive growth in the passenger accident insurance market. Air passenger traffic refers to the increasing number of people traveling by air for business, leisure, and personal purposes. This growth is largely attributed to the rapid expansion of low-cost carriers, which have made air travel more affordable and accessible, particularly in emerging markets and regional routes. Passenger accident insurance provides travelers with compensation for injuries or death during air travel, along with emergency support that boosts traveler confidence and encourages more frequent flying. For example, according to Eurostat in December 2023, the European Union saw a significant increase in air travel, with the total number of passengers reaching 820 million in 2022 - a 119% rise compared to 2021. Thus, the surge in air passenger traffic is fueling the passenger accident insurance market.

Leading companies in the passenger accident insurance market are developing comprehensive travel accident protection plans to offer broader coverage and strengthen their position within the travel insurance sector. Such plans provide financial protection for accidental injuries, disabilities, or death occurring during travel, ensuring travelers receive compensation and assistance when faced with unexpected events. For instance, in September 2023, UK-based Everest Group Ltd. launched Everest Business Travel Accident Insurance, a solution combining insurance coverage with travel, medical, and security assistance tailored for corporate and nonprofit employers, employees, and accompanying guests on domestic and international business trips. The plan includes pre-departure guidance, prescription medication support, transportation to local medical care, and emergency medical evacuation. In partnership with Healix International, insured travelers also benefit from 24/7 in-country support, travel tracking, pre-trip assessments, and a comprehensive duty of care travel program aligned with ISO 31-0030 standards.

In December 2024, Switzerland-based Zurich Insurance Group acquired the personal travel insurance and assistance division of American International Group Inc. for $600 million. This acquisition is designed to significantly enhance Zurich’s travel insurance offerings and global presence by combining Travel Guard with Zurich’s existing insurer, Cover-More Group, under the new brand Zurich Cover-More. This deal positions Zurich among the world’s largest travel insurers, with a strategic emphasis on expanding service capabilities and market reach, especially in the U.S. American International Group Inc. is a U.S.-based provider of passenger accident insurance.

Major players in the passenger accident insurance market are Allianz SE, AXA S.A., MetLife Inc., Tokio Marine Holdings Inc., The Progressive Corporation, Zurich Insurance Company Ltd, Chubb Limited, United Services Automobile Association (USAA), Aviva plc, QBE Insurance Group Limited, Everest Group Ltd., ICICI Lombard General Insurance Company Limited, Bajaj Allianz General Insurance Company Limited, Prudential Guarantee and Assurance, Inc, Cocogen Insurance Inc., Oriental Assurance Corporation, Global Underwriters Inc., Atlas Underwriters LLC, ENNIA, and Workforce Insurance Underwriters LLC.

North America was the largest region in the passenger accident insurance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in passenger accident insurance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the passenger accident insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Passenger accident insurance is a type of coverage that provides financial protection to passengers who experience injury or death due to accidents while traveling in registered transport vehicles such as buses, taxis, trains, or airplanes. It is intended to cover medical expenses, offer disability compensation, or provide financial benefits to the nominee in case of death. This insurance serves as a safety net to help alleviate the financial burden on passengers or their families during unexpected travel-related emergencies.

The main policy types of passenger accident insurance include single-trip insurance, annual multi-trip insurance, group insurance, family plan insurance, and business trip insurance. Single-trip insurance covers one-time domestic or international travel, protecting against accidental injuries, death, or emergency evacuation during that specific journey. Coverage options encompass accidental death, medical expenses, personal liability, trip cancellation, and emergency evacuation insurance. These policies cater to various customer segments such as individual travelers, corporate clients, students, senior citizens, and adventure travelers. They are distributed through multiple channels including direct sales via online platforms, insurance agents, brokers, travel agencies, and mobile applications.

The passenger accident insurance market research report is one of a series of new reports that provides passenger accident insurance market statistics, including the passenger accident insurance industry global market size, regional shares, competitors with the passenger accident insurance market share, detailed passenger accident insurance market segments, market trends, opportunities, and any further data you may need to thrive in the passenger accident insurance industry. This passenger accident insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The passenger accident insurance market includes revenues earned by entities by providing services such as permanent disability coverage, temporary disability benefits and emergency transportation assistance, and value-added travel assistance services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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