Global travel insurance to advance by $40.58bn, says report

By Cynthia Ezekwe

The global travel insurance market has been projected to grow to $40.58bn in 2027 at a compound annual growth rate (CAGR) of 16.0 per cent in 2027, as tourism travel increases.

A report from Research and Markets, a platform that offers a comprehensive collection of market research reports covering the travel insurance sector disclosed this, noting that the global travel insurance market grew from $19.14 billion in 2022 to $22.44 billion in 2023 at a CAGR of 17.3 per cent .

Travel Insurance is a specialised form of insurance intended to cover financial default, medical expenses, and a variety of other sources of financial loss that can be incurred while travelling domestically or internationally.

The report noted  that the rise in tourism is fuelling the growth of the travel insurance market, adding that the incorporation of advanced technologies has emerged as the key trend gaining popularity in the travel insurance platform, as major companies operating in the travel insurance sector are focused on new technologies to strengthen their position in the market.

The Research and Markets report also emphasised that travel insurance helps the tourism sector by providing financial help through certain packages that help travellers in medical emergencies, passport loss, flight cancellation, and misplaced or lost luggage.

This was confirmed in a similar report published by the United Nations World Trade Organization (UNWTO) in 2022, which disclosed that global tourism increased from 400 million in 2020 to 415 million in 2021, showing an increase of  four per cent in 2021 over the previous year. This was described as a notable performance, which signifies that the rise in tourism is driving the growth of the travel insurance market.

According to the report, major players in the travel insurance market are Allianz SE, American Express Company, American International Group Inc., Assicurazioni Generali S.P.A, Atlas Travel Insurance, Aviva plc, Axa S.A., Bajaj Finserv Limited, Berkshire Hathaway Specialty Insurance Company, Chubb Limited, Generali Group, Insure & Go Insurance Services Limited, MAPFRE, Prudential Financial Inc., Saga PLC., Seven Corners Inc., Crum & Forster, Travelex Insurance Services Inc., USI Affinity Inc., Zurich Insurance, and Arch Capital Group Ltd.