Travel Insurance Market Drivers Shaping Future Growth, Revenue USD 124.8 billion by 2031 | CAGR 24.7%
According to the report published by Allied Market Research, the global travel insurance market garnered $19.24 billion in 2019 and is estimated to reach $37.0 billion by 2027, registering a CAGR of 8.6% from 2020 to 2027. The report offers a detailed analysis of the value chain, market dynamics, top winning strategies, key segments, business performance, and competitive landscape.
The research provides an extensive analysis of driving factors, restraints, and opportunities of the global Travel Insurance market. These insights are helpful in availing insights about drivers, determining strategies, and implementing necessary steps to help competitive advantage and sustainable growth. Moreover, market players, investors, and startups can evaluate new opportunities, exploit market potential, and achieve a competitive edge.
The single-trip travel insurance segment to dominate by 2031-
By insurance coverage, the single-trip travel insurance segment held a significant share in 2021, garnering around three-fifths of the global travel insurance market. This is because customized coverages with extra premium costs are offered when the traveller is planning to participate in winter sports, climbing, bungee jumping, and diving while abroad. These are best-suited policies for family travellers who prefer to vacation once or twice a year. At the same time, the long-stay travel insurance segment would showcase the fastest CAGR of 28.7% throughout the forecast period. This is because long-stay travel insurance provides lucrative coverage compared to conventional travel insurance policies, covering medical costs, missing luggage, and having to postpone or cancel a trip.
The insurance intermediaries segment to maintain the lion’s share-
By distribution channel, the insurance intermediaries segment contributed to the highest share in 2021, generating nearly one-third of the global travel insurance market. This is due to the fact that insurance intermediaries are upgrading their businesses by integrating software such as GDS, a global distribution system that facilitates transactions between service providers in the travel industry, such as airlines, hotels, car rental companies, and travel agencies. The insurance aggregators segment, however, would cite the fastest CAGR of 27.9% from 2022 to 2031. This is attributed to the fact that insurance aggregators collect data on various policies of insurance companies and upload it on a single online portal. Individuals interested in taking an insurance policy can visit this portal and compare products, prices, and terms of conditions offered by different insurance companies and make the best choice.
The family travellers segment to retain its dominance-
By end-user, the family travellers segment generated the major share in 2021, holding more than one-fourth of the global travel insurance market, owing to increasing intergenerational travel trends among families. Simultaneously, the business travellers’ segment would portray the fastest CAGR of 28.1% by 2031 due to a rapid increase in international travel for businesses to purchase raw materials from suppliers.