Coronavirus Travel Insurance Market Report 2025

The coronavirus travel insurance market size has grown rapidly in recent years. It will grow from $4.03 billion in 2024 to $4.53 billion in 2025 at a compound annual growth rate (CAGR) of 12.4%. The growth during the historic period can be attributed to rising concerns over unexpected border closures, increased demand for emergency evacuation services, growing instances of denied boarding due to symptoms, a surge in demand for COVID-19 diagnostic coverage, and heightened traveler demand for flexible refund options.

The coronavirus travel insurance market size is expected to see rapid growth in the next few years. It will grow to $7.16 billion in 2029 at a compound annual growth rate (CAGR) of 12.1%. The growth projected for the forecast period is driven by the recovery of international travel, increasing awareness of pandemic-related risks, growing demand for trip cancellation protection, the emergence of new COVID-19 variants, and mandatory insurance policies imposed by destination countries. Key trends in the forecast period include advancements in digital insurance platforms, development of parametric travel insurance products, innovations in COVID-related coverage options, integration of embedded travel insurance with booking apps, and the implementation of AI-driven fraud detection systems.

The rise in international and leisure travel is expected to drive the growth of the coronavirus travel insurance market in the coming period. International and leisure travel involves crossing country borders primarily for relaxation, vacation, or personal enjoyment rather than business purposes. The increase in such travel is attributed to the easing of travel restrictions, as many countries have relaxed COVID-19 travel rules, making international leisure travel easier and more attractive. Coronavirus travel insurance supports this trend by offering financial protection and medical coverage in case travelers encounter COVID-19-related disruptions while abroad. For example, in September 2023, a report from the International Trade Administration, a US government agency, noted that the total number of U.S. outbound travelers to overseas destinations, Canada, and Mexico reached 80.7 million in 2022, representing a 64% increase compared to 2021. Thus, the growth in international and leisure travel is boosting the coronavirus travel insurance market.

Leading companies in the coronavirus travel insurance market are increasingly focusing on innovative solutions such as COVID-19 digital travel insurance to simplify policy issuance and claims processing for travelers. COVID-19 digital travel insurance is a technology-driven policy that covers pandemic-related travel issues and features online purchase, digital documentation, and contactless claims processing. For instance, in March 2022, Virgin Money, a UK-based financial services provider, launched a fully digital travel insurance product that includes COVID-19 coverage as standard. This product offers cancellation protection if a traveler is diagnosed with COVID-19 within 14 days before departure, along with medical treatment and repatriation coverage if COVID-19 is contracted abroad. Available as single-trip or annual multi-trip policies at three coverage levels (red, silver, and gold), it also includes extras such as gadget cover, winter sports, cruise, and car hire excess options. The policies are underwritten by ERGO and were developed in partnership with Hood Group, allowing customers to manage their coverage entirely online.

In January 2023, Igloo Software, a Canada-based software firm, partnered with GCash and Malayan Insurance to introduce a new COVID-19 travel insurance product for Filipinos. This collaboration aims to provide Filipinos with easily accessible, comprehensive travel insurance via the GCash app that covers COVID-19 and other risks, includes additional benefits such as personal accident and travel inconvenience coverage, and supports safe, worry-free travel as tourism rebounds post-pandemic. GCash is a Philippines-based mobile payments company, while Malayan Insurance is a Philippines-based insurer offering travel protection against COVID-19.

Major players in the coronavirus travel insurance market are Allianz SE, Ping An Insurance Company Ltd., China Life Insurance Company Limited, AXA Assistance SA, Assicurazioni Generali, American International Group Inc., AIG Travel Guard Group Inc., Tokio Marine HCC, Chubb Limited, TUI AG, Medibank Private Limited, Starr Indemnity & Liability Company, Berkshire Hathaway Specialty Insurance Company, Seven Corners Inc., International Medical Group Inc., Travelex Insurance Services Ltd., World Nomads Insurance Services Pty Ltd., InsureMyTrip Inc., Trawick International LLC, Zurich Insurance Group Ltd., USI Affinity Inc.

North America was the largest region in the coronavirus travel insurance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in coronavirus travel insurance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the coronavirus travel 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.

Coronavirus travel insurance is a specialized form of travel coverage designed to protect travelers from financial losses and unexpected expenses related to COVID-19. This insurance offers peace of mind by addressing the unique risks posed by the pandemic, ensuring coverage for disruptions and emergencies specifically linked to the coronavirus.

The main coverage types under coronavirus travel insurance include trip cancellation, medical expenses, emergency evacuation, trip interruption, and others. Trip cancellation coverage reimburses travelers for non-refundable costs if they need to cancel their trip due to covered events such as illness, airline disruptions, or government travel bans. The insurance is available in various coverage durations, including single-trip, annual multi-trip, long-term, and short-term options. It is distributed through online insurance agents, brokers, and other channels. Applications include international aviation, domestic aviation, high-speed rail, and more, with key end-users being travelers involved in international and domestic aviation, high-speed rail, and related sectors.

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

The coronavirus travel insurance market includes revenues earned by entities by providing services such as quarantine accommodation coverage, travel delay compensation, coverage for travel companions, and repatriation of remains. 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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