Travel Insurance Market Overview

The travel insurance industry is poised to grow significantly between 2025 and 2035 due to rising international and local travelers, heightened awareness of travel risks, and growth in travel bookers over the internet. The industry is expected to reach about USD 32.8 Billion by 2025. It can grow to about USD 129.4 Billion by 2035. This reflects a growth rate of 18.2% each year between these ten years.

Travel insurance offers security and peace of mind against trip cancellations, medical issues, lost luggage, and travel interruptions, thereby being a necessary inclusion for travelers who want protection. With tourism recovering post-pandemic, demand for all-round travel insurance policies will increase, promoting the growth of the market as well as adoption of innovative insurance solutions. Furthermore, increasing business as well as recreational travel, coupled with growth in activity-based travel, has raised the demand for tailored as well as flexible insurance policies. With the convergence of digital platforms, AI-based underwriting, as well as blockchain technologies, insurance accessibility, ease, as well as transparency are increasing, thereby personalizing and making policies even more affordable. Furthermore, regulations enforced by governments in countries requiring travel insurance as a visa submission necessity are further driving the growth of the market.

The trends in the market are moving towards multi-trip insurance plans, targeting frequent travelers, and niche coverage products, including pandemic protection and air delay compensation. The growth of insurtech also continues to redefine the business, with instant policy issuing and settlement through digital platforms.

Travel Insurance Market Drivers and Opportunities

Rising International Tourism and Business Travel Is Anticipated to Lift the Travel Insurance Market During the Forecast Period

​The global travel insurance market is significantly driven by the growth in international tourism and business travel. With increasing travel abroad by people for leisure, corporate visits, academic purposes, and medical reasons, demand for travel insurance coverage has picked up momentum. Post-pandemic, tourism revival and pent-up travel demand due to restrictions are resulting in international and domestic travel in large volumes, mandating financial security against trip cancellations, medical evacuation, lost luggage, and unforeseen interruptions. Business travel is also increasing through globalization, with organizations sending employees abroad to attend meetings, conferences, and client meetings. Organizations are now adding travel insurance policies as corporate perks, guaranteeing employee safety as well as fulfilling visa and travel requirements. The governments of countries are also making compulsory travel insurance a condition for issuing visas, catalyzing growth in the industry.

Market analysis implies that travel insurance continues to grow as travel patterns change. With more travellers choosing personalised and flexible policies, businesses are innovating by introducing personalised plans suited to various types of travelers, including family travel, holiday travel, and medical travel. The trend will also add to the projected growth of the international travel insurance market.

Increasing Awareness of Travel-Related Risks and Medical Emergencies Is a Vital Driver for Influencing the Growth of the Global Travel Insurance Market

​Increased awareness of travel risks and medical emergencies is another major growth driver for this industry. As travelers are more aware of risks like accidents, trip cancellations, theft, flight delays, and natural disasters, as well as financial losses due to these risks. The COVID-19 pandemic once again created greater awareness of health risks, compelling travelers to opt for insurance plans covering medical emergencies, hospitalization, and expenses due to quarantine. Medical emergencies overseas can prove to be very expensive, especially in countries with high healthcare costs. Insurance covers travel to provide adequate medical treatment without overburdening expenses, making it a necessity, not an option. The insurers are also expanding their coverage by adding telemedicine services, direct billing with hospitals across all geographies globally, and cashless hospitalization, all of which are adding to customer trust and adoption.

Consequently, market research shows an increasing pattern of health-oriented travel insurance policies with a major emphasis on inclusive medical coverage against emergencies and trip interruptions. The worldwide travel insurance industry is projected to experience stable growth with increased demand for greater security and risk management as more travelers give safety higher priority.

Integration of AI, Blockchain, and Real-Time Data for Smarter Insurance Solutions is poised to create significant opportunities in the global Travel Insurance Market

​Technological innovations in artificial intelligence (AI), blockchain, and big data analytics create a huge opportunity for market growth. AI-based risk assessment models are able to examine traveler behavior, destination risk scores, and past claims data to enable individualized travel insurance plans based on dynamic pricing. Blockchain allows secure and transparent transactions with minimized fraud and accelerated settlement of claims. Smart contracts provide instant payout of insured incidents without delays, improving customer satisfaction. Furthermore, real-time tracking solutions based on IoT can enable real-time assistance in the event of travel interruptions, lost luggage, or medical assistance. For example, in January 2023, BATTLEFACE UNDERWRITING SERVICES SRL introduced a new technology-enabled platform as a service named Robin Assist. Robin Assist uses Application Programming Interface (API) and is well suited for general agents, insurance intermediaries, and enterprise partners who are into delivering travel insurance. It facilitates customer service and emergency settlements.

Higher adoption of digital platforms, AI-powered chatbots, and API-based insurance integration with travel websites and flight companies are changing the industry's landscape. With continued digital innovation, those insurance organizations using innovative technologies will become more competitive by delivering faster, more convenient, and personalized travel insurance solutions to suit modern traveler needs.

Travel Insurance Market Scope

Travel Insurance Market Report Segmentation Analysis

The Global Travel Insurance Market Industry Analysis Is Segmented by Coverage Type, by Trip Type, by Distribution Channel, by End User, And by Region.

The Single-Trip Travel Insurance Segment Is Anticipated to Hold the Highest Share of the Global Travel Insurance Market During the Projected Timeframe.

Based on coverage type, the global travel insurance market is segmented into Single-Trip Travel Insurance, Annual Multi-Trip Travel Insurance, and Long-Stay Travel Insurance. In 2025, Single-Trip Travel Insurance dominates the market, spurred by the growing number of first-time foreign visitors, business travelers, and leisure travelers looking for short-term coverage for certain trips.  It is the most popular travel insurance choice in the world since it offers one-time financial protection against medical crises, lost luggage, trip cancellations, and unforeseen delays.

The International Trip Segment Dominated the Market in 2025 And Is Predicted to Grow at The Highest CAGR Over the Forecast Period.

Based on trip type, the global travel insurance market is segmented into Domestic and International Travel Insurance. The International Travel Insurance segment leads the market due to higher volumes of people undertaking foreign travel for leisure, business, educational needs, and medical reasons. International travel poses more risks such as medical emergencies, trip cancellations, stolen passports, flight delays, and misplaced baggage, so all-encompassing travel insurance coverage becomes inevitable when visiting overseas locations. Multiple countries have also mandated travel insurance policies for visa applications, thereby promoting the growth of this segment.

The Insurance Companies Segment Is Predicted to Grow at The Highest CAGR Over the Forecast Period.

Based on distribution channel, the global travel insurance market is segmented into Airlines, Banks, Insurance Companies, Online Travel Agencies (OTA), Railway Operators, Travel Agents/Tour Operators, and Others. Insurance Companies are well-positioned to dominate the market as they are the major sellers of travel insurance and possess strong brand equity, far-reaching distribution networks, and robust policy product lines. The travelers favor direct purchase from insurance providers because of access to tailored plans, elaborate coverage details, and hassle-free claim settlements.

The Senior Citizens Segment Is Expected to Dominate the Market During the Forecast Period.

Based on end user, the global travel insurance market is segmented into Education Travelers, Business Travelers, Senior Citizens, Family Travelers, and Others. Among these, Senior Citizens dominate the market, as older travelers are more likely to seek comprehensive travel insurance coverage due to their higher risk of medical emergencies, trip cancellations, and travel disruptions. Given that many senior citizens travel for leisure, retirement vacations, medical tourism, and family visits, they require specialized insurance policies that cover pre-existing health conditions, emergency medical evacuations, and hospitalization costs abroad.

The following segments are part of an in-depth analysis of the global travel insurance market:

Travel Insurance Market Share Analysis by Region

North America Is Projected to Hold the Largest Share of the Global Travel Insurance Market Over the Forecast Period.

By 2025, North America accounts for 31.7% of the highest share in the overall travel insurance industry due to the large number of domestic and foreign travelers, high awareness of travel risks, and high rate of comprehensive policy adoption. The region has well-developed insurance infrastructure, robust travel regulations, and compulsory travel insurance policies to certain destinations, resulting in steady growth of the industry. The availability of industry giants and advanced digital platforms has also eased policy issuance, processing of claims, and customer services, improving overall customer experience. The major driver of North American leadership is growing outbound travel to leisure, business, and medical destinations, especially from United States and Canada. Due to growing health security concerns, trip cancellations, and unexpected travel interruptions, tourists actively seek tailored policy plans providing medical coverage, trip security, and emergency services assistance. The growth in digital and embedded insurance solutions through airlines, travel agents, and web portals also increased access and ease of travel policy purchase, adding to industry growth.

At the same time, the Asia-Pacific (APAC) segment will see maximum CAGR in the foreseeable future, driven by increasing outbound tourism, rising disposable incomes, and greater awareness of the advantages of travel insurance. China, India, as well as other Southeast Asian countries are witnessing a growth in international travel, thus presenting huge opportunities in terms of growth to insurance players in this region.

Travel Insurance Market Competition Landscape Analysis

Key industry players are also initiating actions towards blockchain technology integration in the travel insurance industry. Some of the key companies in the travel insurance market include Allianz, American International Group, Inc., AXA, ASSICURAZIONI GENERALI S.P.A., and others. Prominent players dominate with comprehensive coverage options, leveraging extensive distribution networks and strong brand trust to capture significant portions of the market.

Global Travel Insurance Market Recent Developments News:

In March 2024, Zurich Insurance joined hands with travel and leisure e-commerce platform Klook to launch FlyEasy coverage, which, based on Zurich Edge platform with micro-services by Blink Parametric, seeks to ease customer stress due to prolonged flight delays in airports.

In May 2022, Trip.com and AXA Partners launched a major European enlargement of new travel insurance products targeting German and French tourists. The two new insurance plans include various benefits such as medical, cancellation and luggage cover, chosen when booking a flight on Trip.com.

The Global Travel Insurance Market Is Dominated by A Few Large Companies, Such As

·         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.