Top 10 Travel Insurance Industry Trends & Innovations in 2024: Growth Analysis

 

Overview

Travel insurance, which covers financial losses related to traveling, can provide valuable protection for journeys within the country or abroad. Global travel insurance market is expected to grow from USD 13.3 Billion in 2021 to USD 99.0 Billion by 2030, at a CAGR of 25% during the forecast period 2021-2030. The growth of the travel insurance market is mainly driven by the rise in tourism, easy online shopping through comparison sites, and travel regulations and rules.

 

Competitive Landscape

Major companies in the travel insurance industry include Allianz Travel Insurance, Travelex Insurance Services, World Nomads Travel Insurance, Tata AIG General Insurance, Seven Corners, HTH Travel Insurance, Generali Global Assistance, IMG Travel Insurance, AXA Assistance USA, Berkshire Hathaway Travel Protection, Nationwide Insurance, Aviva, AA Travel Insurance, Staysure, Virgin Money Travel Insurance, Cover for You, and Flexicover Travel Insurance. The market is divided with established companies and new entrants joining. Raising awareness about travel insurance and the convenient access to these services online is leading to fierce competition in the market. Furthermore, In July 2022, One80 Intermediaries, a specialized insurance broker, revealed they had acquired SelmanCo, an insurance administrator. By obtaining SelmanCo, the company aims to grow in the affinity market, improve employee benefits, and expand insurance services for retired U.S. Armed Forces and their families. There are a number of well-known players in the travel insurance industry.

 

Thailand's New Safety Initiative and Europe's Growing Travel Market Amid Post-Pandemic Recovery

Thailand's latest program, the Thailand Traveller Safety Project, provides accident medical coverage of up to $14,000. Its goal is to lure back backpackers during the COVID-19 pandemic and travel restrictions by tackling the problem of insufficient insurance coverage. Moreover, Europe held a 34.7% market share in 2021. Factors like the rise in travel and tourism contributed to the development of prosperity, advanced communication, and harmony among nearby regions. A survey carried out in June 2020 by SchengenVisaInfo.com's Research and Statistical Department, which included 2,636 respondents and 87 third-country nationals, revealed that 62% of travelers planned to visit Europe once the borders were opened again post the COVID-19 crisis.

 

The report provides a summary of the global top trends and future prospects for the global travel insurance market based on historical data sets (current trends, industry statistics, and emerging trends shaping the travel insurance industry’s future, preliminary estimates from 2020-2021, 2022, and 2023), as well as projections for the global travel insurance trends and future prospects for global regions in 2024 and 2025. This data-driven research offers users an industry-wide view of emerging technologies and innovative insights to help them make critical business decisions. 

 

Growth Factors and Emerging Trends in the Travel Insurance Market

 

1. The rapid growth in tourism is driving the growth of the travel insurance market.

The increasing popularity of tourism is fueling the expansion of the travel insurance industry as the rising number of travelers, both at home and abroad, has led to a substantial rise in the demand for travel insurance products. With the growth of the tourism industry, an increasing number of individuals are traveling, leading to a higher likelihood of encountering unforeseen issues like medical emergencies, misplaced baggage, flight cancellations, and natural disasters. The increase in travel leads to a higher demand for travel insurance as individuals look for financial security from potential risks. The growing need for travel health insurance, rising international tourism, the aging population, and regulatory mandates for insurance contribute to the market's expansion. Moreover, the rise in international travel, fueled by reasons like higher disposable income, all-inclusive travel packages, and convenient online booking, heightened travelers' understanding of the importance of travel insurance. The increasing awareness among consumers about the possible inconveniences and financial setbacks related to travel mishaps is driving the growth of the travel insurance market.

 

1. Consumer preferences are changing and gaining seamless experience for travel insurance.

Consumer preferences are evolving, and there is a growing demand for a smooth purchasing experience for travel insurance as more people turn to the internet to compare prices online. Direct airline websites and online travel agencies, along with company platforms, are fueling the expansion of the online insurance sector by educating users in the market. Additionally, these internet platforms usually have a restricted selection from just one provider, giving customers a convenient way to compare and purchase travel insurance plans from highly rated companies. Therefore, it is anticipated that the growth of travel insurance premiums will be driven by comparison shopping on online platforms in the coming forecast period. In 2022, a study by TravelInsurance.com compared various travel insurance companies and predicted that online comparison sites would be the fastest-growing sales channel for the travel insurance industry.

 

Opportunities and Future Prospects in the Travel Insurance Market

 

Recent advancements in technology within the travel insurance sector.

Technologies such as geolocation, APIs, AI, data analytics, blockchain, and big data are generating increasing opportunities for insurers in the market. Due to these technological advancements, travel insurance distribution channels are expected to function more effectively and provide coverage directly at the time of purchase. Furthermore, digital transformation allows travel insurance companies to offer personalized user experiences to customers. Moreover, in order to sustain their market position, insurance companies are contemplating utilizing big data analytics, which provides opportunities to generate substantial premiums. Furthermore, technology assists in gathering data, addressing individual customer requirements, assessing risk, and identifying fraud. Predictions suggest that advancements in technology, which simplify the process of obtaining travel insurance and increase convenience, will lead to lucrative market opportunities for insurers.

 

List of Key Companies in the Travel Insurance Market

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

 

Top 5 Key Players Profile in the Travel Insurance Market

 

1. AIG

 

Headquarters: New York, NY

AIG, a top global insurance and financial services company, is based in New York City. Founded in 1919, AIG offers a variety of insurance products such as property and casualty, life, and retirement services. The company serves millions of customers globally, operating in over 80 countries. AIG's reputation is based on its wide-ranging knowledge of managing risks and providing financial services to individuals and institutions. Even after encountering major obstacles in the past, such as needing a large bailout during the financial crisis of 2008, AIG has made efforts to improve its financial standing and streamline its operations, placing emphasis on expanding and innovating within the insurance industry.

 

2. AXA

 

Headquarters: Paris, FR

AXA, based in Paris, France, is a well-known company respected for its wide-reaching global presence and full spectrum of financial offerings in insurance and asset management. Established in 1817, AXA operates in more than 50 countries, providing a range of products such as life, health, property, and casualty insurance, as well as investment management services. The company is acknowledged for its dedication to innovation and sustainability, working to address the changing needs of its customers and advancing ethical business strategies. AXA's leading position in the global insurance market is a result of its robust financial stability and varied portfolio, enabling it to cater to millions of customers with customized solutions for asset protection and growth.

 

3. GENERALI

 

Headquarters: Nottingham, Nottinghamshire

Generali, also known as Assicurazioni Generali S.p.A., is a prominent international insurance and financial services company based in Trieste, Italy. Established in 1831, Generali has expanded to become one of the biggest and most impactful insurance companies globally, operating in more than 50 countries. The company provides a wide variety of products such as life, health, property, and casualty insurance, along with asset management services. Generali is well-known for its strong financial stability, creative products, and customer-focused strategy, striving to offer extensive protection and assistance to both individuals and businesses. Its reputation as a significant player in the global insurance market is solidified by its extensive history and advantageous global location.

 

4. USI INSURANCE SERVICES

 

Headquarters: Valhalla, NY

USI Insurance Services, headquartered in Valhalla, New York, is a top independent insurance brokerage and consulting firm. Founded in 1999, USI provides a wide array of risk management and insurance services for businesses, individuals, and organizations in diverse sectors. The company focuses on property and casualty insurance, employee benefits, and retirement plans, offering customized tactics to handle and reduce risks. Recognized for its customer-centric strategy and creative offerings, USI utilizes its broad industry knowledge and technology-based resources to provide tailor-made service and improve its clients' insurance and risk management initiatives. Having a solid presence across the country and a dedication to quality, USI has positioned itself as a leading force in the insurance brokerage sector.

 

5. INSUREANDGO UK

 

Headquarters: Southend-on-Sea

InsureandGo UK, based in Manchester, England, is a leading travel insurance provider. Founded in 2000, the company provides various travel insurance options tailored for travelers, including single-trip plans and comprehensive annual policies. InsureandGo UK is recognized for its competitive prices, easy claims process, and wide range of coverage options which include medical emergencies, trip cancellations, and lost baggage. Being a part of the MAPFRE Group, InsureandGo UK takes advantage of a solid global insurance and reinsurance company, ensuring financial stability and a strong international network, making it a trustworthy option for budget-friendly and extensive insurance coverage for travelers.

 

Recent Developments

 

• In June 2024, A special insurance partnership was inaugurated with a ceremony, involving AXA Hong Kong and Macau and HK Express Airways. By teaming up, HK Express customers can receive customized coverage and a simplified travel insurance procedure.

 

• In March 2024, TATA AIG General Insurance, accounting for around one-third of the nation's international travel insurance premium, unveiled 'Travel Guard Plus,' a travel insurance scheme providing coverage for up to one year on either multiple or single trips. Optional services such as Lost Passport monitoring, Baggage tracking, and Care at Home have been introduced to enhance the convenience of travelers.

 

• In March 2024, Zurich Insurance collaborated with travel and leisure e-commerce platform Klook to launch FlyEasy coverage, utilizing the Zurich Edge platform with micro-services from Blink Parametric, to alleviate customer anxiety caused by extended flight delays at airports.

 

• In October 2023, Travel Insured International (Travel Insured) partnered with Robin Assist, a technology-based emergency travel support platform, to offer quick customer service, emergency travel and medical aid, and claims to insured individuals using any device, at any time and place. The partnership offers Travel Insured’s clients round-the-clock assistance for managing travel threats, and with the help of the Robin Assist team, support is accessible to travelers all over the globe.

 

• In August 2022, Generali increased its ownership in the AXA-Affin partnerships in Malaysia to expand its dominance in promising markets such as travel insurance.

 

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