Travel Insurance Industry Statistics 2024: Market Size, Projections, and Consumer Insights
Barry Elad
Updated · Dec 03, 2024
Imagine you’ve planned the perfect vacation: destination set, tickets booked, itinerary ready. But what if something unexpected happens—an injury, a flight cancellation, or lost luggage? This is where travel insurance becomes crucial, offering a safety net that can transform travel mishaps into manageable inconveniences rather than expensive disasters. In recent years, as travel becomes more accessible and global challenges such as the pandemic underscore the importance of health and safety, travel insurance has evolved from an optional luxury to an essential item for many travelers. This article explores the current state of the travel insurance industry, diving into key trends, market size, and consumer behaviors that shape this booming sector.
Editor’s Choice: Key Highlights of the Travel Insurance Industry
- Global travel insurance market value reached approximately $20.8 billion in 2023 and is forecasted to grow at a 6.4% CAGR through 2028.
- Medical expense coverage remains the most sought-after benefit, accounting for over 35% of policy purchases globally.
- The US market alone generated an estimated $4 billion in travel insurance premiums in 2023, driven by post-pandemic travel surges.
- Millennials and Gen Z make up about 45% of new travel insurance buyers in 2024, showing an increasing awareness of travel risks among younger generations.
- Digital platforms and mobile applications contributed to over 60% of all travel insurance sales in 2023, simplifying access and purchase for consumers.
- COVID-19-related claims peaked in 2020 but continued to influence insurance policies, with 72% of new policies in 2023 including pandemic-related coverage.
- The top three travel insurance providers globally—Allianz, AIG, and Berkshire Hathaway—capture over 30% of the market share collectively.
Market Size and Growth Projections
- The global travel insurance market size is projected to exceed $28 billion by 2028, up from $20.8 billion in 2023.
- Asia-Pacific is anticipated to be the fastest-growing region, with a CAGR of 7.3% from 2023 to 2028, as international travel recovers and expands in countries like China and India.
- In North America, the travel insurance industry is expected to see steady growth at a 5.9% CAGR, driven by increasing outbound travel and heightened awareness of health risks.
- The Europe travel insurance market represents approximately 32% of the global market and is forecasted to reach $9.6 billion by 2028.
- Single-trip policies remain the most popular, constituting around 58% of global sales as of 2023, while annual multi-trip policies see rising interest, particularly among frequent travelers.
- Domestic travel insurance in markets like the US saw significant growth in 2022, now representing 15% of total policies sold, up from 10% in 2019.
Market analysts predict a substantial rise in demand for specialized policies, including adventure travel and cruise insurance, as these sectors rebound.
Consumer Behavior and Trends
- Over 70% of travelers purchasing insurance in 2024 cited medical emergencies as their top concern, making medical coverage a primary factor in policy selection.
- Digital channels now dominate the travel insurance space, with 75% of policies sold online in 2023, marking a shift towards digital-first consumer behaviors.
- The demand for cancel-for-any-reason (CFAR) policies has grown, with 20% of travelers opting for CFAR in 2023, up from 12% in 2020.
- Millennials are leading in insurance purchases, with 54% of them indicating they would not travel without coverage in 2023.
- Price transparency and ease of claim processing emerged as top priorities, with 82% of customers favoring providers with straightforward pricing and digital claim solutions.
- Eco-conscious travel insurance has gained attention, with 5% of policies in 2023 specifically catering to environmentally friendly or sustainable travel options.
- Travel advisors and agents influenced about 23% of purchases in 2023, especially among high-value clients seeking specialized coverage.
| Trend | Value/Percentage |
| Travelers Citing Medical Emergencies (2024) | 70% |
| Policies Sold Online (2023) | 75% |
| CFAR Policy Adoption (2023) | 20% |
| Millennials Not Traveling Without Coverage | 54% |
| Customers Favoring Price Transparency | 82% |
| Eco-Conscious Policies (2023) | 5% |
| Purchases Influenced by Advisors (2023) | 23% |
By Insurance Cover
- Medical coverage is the leading insurance cover, representing 42% of travel insurance policies in 2023, as travelers prioritize health protection during trips.
- Trip cancellation and interruption coverages account for 34% of total policies, with the majority of these policies being purchased for international travel.
- Baggage loss and delay protection holds 16% of the travel insurance market, appealing to travelers wary of airline delays and lost luggage.
- Cancel-for-any-reason (CFAR) policies grew by 28% in 2023, with more consumers valuing flexibility in trip planning.
- Adventure and extreme sports coverage surged to cover 8% of travel insurance plans as more travelers engage in activities like skiing, scuba diving, and trekking.
- Pandemic-specific coverage is now included in 64% of all policies offered in 2023, allowing travelers to manage unexpected health crises.
- Travel delay insurance, which provides compensation for flight and transit delays, made up 12% of policy types purchased, underscoring the demand for smoother travel experiences.
| Insurance Type | Percentage of Policies |
| Medical Coverage | 42% |
| Trip Cancellation and Interruption | 34% |
| Baggage Loss and Delay Protection | 16% |
| Adventure & Extreme Sports | 8% |
| Pandemic-Specific Coverage | 64% |
| Travel Delay Insurance | 12% |
By End User
- Individual travelers are the largest segment, accounting for 60% of policies sold as solo and business travel remain prominent across global markets.
- Family policies represent 24% of travel insurance sales, covering multiple members and often including special provisions for children.
- Senior travelers made up 16% of policies purchased in 2023, showing a strong inclination among older adults for robust medical coverage.
- The student travel insurance market is growing, with 8% of policies purchased specifically by or for students studying abroad or participating in international programs.
- Corporate travel policies accounted for 15% of the market, with companies increasingly covering employees’ travel insurance as part of benefits packages.
- Group travel insurance saw a rise in 2023, with 5% of policies catering to groups or events, especially in sectors like education, sports, and leisure tours.
- Frequent travelers show a preference for annual multi-trip policies, which cover unlimited trips within a year; these made up 10% of the market share.
Geographic Market Insights
- The United States holds the largest share of the global travel insurance market, representing over 20% in 2023, largely due to high international travel rates and a well-established insurance sector.
- Europe follows closely, with approximately 32% of the market, driven by strong demand in countries like the UK, Germany, and France, where outbound travel is robust.
- Asia-Pacific is the fastest-growing region, with a 7.3% CAGR, fueled by rising disposable incomes and an expanding middle class in countries like China, India, and Japan.
- Latin America saw a 5% increase in travel insurance adoption in 2023, driven by growing awareness and outbound travel from Brazil, Mexico, and Argentina.
- Middle Eastern travelers increasingly seek comprehensive insurance; 4% of global policies now cater to this region, where high-net-worth individuals often purchase premium policies.
- The African travel insurance market is emerging, with 2.5% annual growth as more African travelers head abroad for tourism, business, and educational opportunities.
- Canadian travelers showed increased interest in travel insurance, with over 65% of international trips covered by policies in 2023, driven by health concerns and unpredictable travel conditions.
Leading Market Players and Competitive Landscape
- Allianz, AIG, and Berkshire Hathaway dominate the travel insurance market, with a combined market share exceeding 30%, offering extensive global coverage and diverse plans.
- AXA ranks highly in Europe and Asia, capturing about 12% of the market share due to its regional-specific coverage options and widespread brand recognition.
- Seven Corners and World Nomads have gained popularity among millennials and adventure travelers by offering tailored policies for backpacking, trekking, and extreme sports.
- Travelex Insurance Services appeals to family travelers and groups, providing affordable, customizable packages with family-focused benefits.
- Generali Global Assistance has a strong presence in North America, with an 8% market share, focusing on comprehensive health and accident coverage.
- Allianz’s TravelSmart app has improved the user experience by providing real-time assistance and digital claims, with over 1 million downloads in 2023.
- Squaremouth stands out as a competitive marketplace, enabling travelers to compare policies from multiple providers, which led to a 22% increase in user engagement in 2023.
Technological Innovations in Travel Insurance
- Artificial intelligence (AI) in underwriting and claims processing reduced claim handling time by 40% in 2023, helping companies quickly assess risks and payout claims.
- Blockchain technology has begun to streamline travel insurance claims, allowing for transparency and reducing fraud; 2% of insurers have adopted blockchain-based claims solutions.
- Telemedicine services have become a standard feature, allowing insured travelers access to medical consultations online, now included in 35% of policies.
- The use of machine learning in fraud detection saved the industry an estimated $200 million in 2023 by flagging suspicious claims with high accuracy.
- On-demand insurance, allowing travelers to purchase coverage by the day or even hour, gained traction, making up 15% of new policy types in 2023.
- Geolocation services now assist insurers in tracking and providing updates during crises, with over 25% of providers using geolocation to aid travelers.
- Digital claims processing grew by 55% in 2023, with insurers like Allianz and AXA offering full-service mobile applications for filing and tracking claims.
| Innovation | Adoption Rate (2023) | Impact |
| AI in Underwriting/Claims | 40% reduction in claim time | Faster claim assessments |
| Blockchain in Claims | 2% of insurers | Reduces fraud and adds transparency |
| Telemedicine Services | 35% | Access to online medical consultations |
| Machine Learning in Fraud | $200 million saved | High accuracy in flagging suspicious claims |
| On-Demand Insurance | 15% of new policies | Flexibility for short-term travel needs |
| Geolocation Services | 25% | Real-time crisis updates for travelers |
| Digital Claims Processing | 55% growth | Convenient claims through mobile apps |
Top Impacting Factors
- COVID-19 continues to influence the industry, as over 70% of travelers indicate that pandemic-related concerns still drive their insurance choices.
- Political instability in certain regions has led to a 12% increase in demand for travel policies that include evacuation and crisis response.
- Climate change is emerging as a factor, with 5% of policies now offering extreme weather coverage for disruptions due to hurricanes, floods, and fires.
- Rising medical costs have made travelers more likely to choose policies with comprehensive health benefits, especially for destinations with high healthcare expenses.
- Eco-friendly travel is increasingly prioritized, with insurers developing green policies that incentivize low-impact travel and carbon offset options.
- Economic downturns globally have shifted travelers toward budget-friendly plans, resulting in an 18% increase in sales of basic coverage options in 2023.
- The global aging population has impacted the industry, with seniors over 65 purchasing more policies, especially those with advanced health coverage.
US Travel Insurance Industry Overview
- The US travel insurance industry saw premiums exceed $4 billion in 2023, driven by renewed interest in domestic and international travel.
- Trip cancellation policies are particularly popular among US travelers, comprising 40% of policies due to the high costs associated with last-minute cancellations.
- Health coverage is critical for US travelers, with 68% of policies including emergency medical benefits to offset high out-of-pocket healthcare expenses abroad.
- The adoption of digital insurance platforms surged in the US, where 70% of purchases were made via online platforms or mobile apps in 2023.
- Cruise insurance remains significant, as 13% of policies in the US cater to travelers on cruises, which often require specialized coverage.
- Domestic travel insurance increased in popularity, with over 25% of policies covering solely US-based trips, as Americans explore more domestic destinations.
- The cancel-for-any-reason (CFAR) add-on saw increased adoption, with 18% of policies including this flexible option, allowing travelers to cancel without a specific cause.
Recent Developments
- Allianz Partners introduced “Allianz TravelSmart Pro,” an advanced app offering enhanced AI-powered assistance, digital claims, and geolocation features.
- AIG Travel announced a partnership with the World Health Organization (WHO) to incorporate global health updates into their insurance app, helping travelers stay informed on health risks.
- AXA launched a carbon-neutral travel insurance plan in 2023, which offsets policyholder travel emissions, catering to environmentally-conscious travelers.
- Travelex Insurance Services added mental health support to certain policies, recognizing the importance of mental well-being during travel.
- Generali Global Assistance enhanced its family policies, including greater benefits for child protection and travel disruptions affecting families.
- Seven Corners expanded its reach in Asia, collaborating with local insurers to provide tailored plans for Asian travelers venturing abroad.
- Insurtech startups have emerged strongly, with companies like SafetyWing offering flexible, subscription-based travel insurance, attracting digital nomads and frequent travelers.
Conclusion
In a world where travel presents both endless opportunities and potential risks, travel insurance has become a cornerstone of smart planning. From covering medical emergencies and cancellations to responding to global trends like sustainable travel, the industry has adapted to meet evolving demands. As technology shapes the industry through AI and blockchain, and new types of coverage emerge for eco-friendly and flexible travelers, the travel insurance market is set for dynamic growth. Whether it’s a family vacation, a solo adventure, or a business trip, securing the right coverage can make all the difference in navigating the unexpected on your journey.
Barry Elad
Barry Elad is a dedicated tech and finance enthusiast, passionate about making technology and fintech concepts accessible to everyone. He specializes in collecting key statistics and breaking down complex information, focusing on the benefits that software and financial tools bring to everyday life. Figuring out how software works and sharing its value with users is his favorite pastime. When he's not analyzing apps or programs, Barry enjoys creating healthy recipes, practicing yoga, meditating, and spending time in nature with his child. His mission is to simplify finance and tech insights to help people make informed decisions.
