Travel Insurance Market Size, Share & Industry Analysis, By Travel Type (Single Trip, Annual or Multi-Trip, and Long Stay), By Insurance Type (Medical & Accident Insurance, Travel & Baggage Insurance, Trip Insurance, and Others), By Distribution Channel (Online and Offline), By End User Age Group (Millennials or Youth, Mid-Aged Group and Senior Citizen), and Regional Forecast, 2025 – 2032

The global travel insurance market size was valued at USD 27.55 billion in 2024 and is projected to grow from USD 31.25 billion in 2025 to USD 97.05 billion by 2032, exhibiting a CAGR of 17.6% during the forecast period. Europe dominated the market with a share of 51.76% in 2024.

Growing young demographics, rising consumer disposable income, shifting spending patterns, and supporting government initiatives are largely influencing the market for travel insurance. Increasing awareness related to travel risks and country-level exemptions for tourists will further enhance the market. Along with increased tourism, especially during the post-pandemic period, the market noticed huge opportunities, owing to rising business traveling and student visas. Several countries have implemented mandatory travel or medical insurance for tourists.

Key players in the market are introducing comprehensive policy offerings for instances such as trip cancellation, medical insurance, travel delays, baggage delays, and others. For example, Schengen travel insurance is a region-specific insurance implemented by the European Union. This mandates medical insurance for non-EU visitors in 29 European countries, including Finland, France, Hungary, Netherlands, Slovakia, and others.

The COVID-19 pandemic largely impacted the market due to cross-border restrictions. Border closures and travel bans across countries resulted in a declined in travel revenue across regions. However, post-pandemic, the product demand for tourism increased, owing to several exemptions, initiatives, and rising awareness about native tourist destinations. Growing health awareness and the inclusion of COVID-19 and other medical coverage in the plan have resulted in market growth.

IMPACT OF ARTIFICIAL INTELLIGENCE

Enhanced Customer Experience and Optimal Insurance Options to Benefit Market

AI tools are gaining higher traction across the BFSI sector, including travel insurance. Several insurance providers collaborate with travel advisors or online travel agencies to enhance their market presence and insurance offerings. Several AI tools offer a comprehensive analysis of travel insurance offered by several companies. For instance, in October 2024, ICICI Lombard, an Indian Insurance company, introduced an AI-powered solution for international travelers. The new insurance offered includes a Visa fee refund, car rental coverage, pre-existing medical coverage, and adventure sports coverage.

IMPACT OF TARIFFS

Pricing Fluctuations and Shifting Travel Patterns Might Pose Challenges to Market Growth

U.S. Tariffs have resulted in a moderate impact on the insurance industry. Cross-border tensions and increased expenses have resulted in the rise of prices, impacting the growth of the market. Fluctuations in trade policies and operational costs might further increase the cost plans, impacting the price-sensitive regions across different geographies.

Travel Insurance Market Trends

Customized Insurance Coverage and Improved COVID Coverage have Emerged as a Market Trend

Several key players in the market are introducing personalized coverage for travelers. COVID-19 pandemic coverage, comprehensive travel and medical insurance, AI-driven insurance plans, improvement in digital platforms, and rising demand for CFAR (Cancel-For-Any-Reason) policies are leading the travel insurance market share. In May 2025, Just Insurance Agents Limited (JIAL) rebranded Just Travel Cover, an insurance brand for travel, to provide digital platforms and enhance customer experience.

MARKET DYNAMICS

Market Drivers

Growing Awareness about Health and Regulatory Mandates to Boost Market Growth

Rising disposable income, increasing number of travelers, rising awareness among age-old travelers, and comprehensive insurance coverages are significantly boosting the demand for travel insurance. Several countries are expanding their tourism industry to increase their economies. For instance, in April 2024, UN Tourism collaborated with Zambia’s Ministry of Tourism to attract new investment in the tourism sector. Middle-aged and older age groups prefer insurance policies while travelling to international destinations, owing to high health risks. Several student groups and business travel groups are likely to purchase insurance due to visa requirements, high medical expenses, and mandatory corporate policies.

The growing availability of social media influence, marketing campaigns, and budget-friendly travel solutions over digital platforms has resulted in increased outbound tourism in native countries. Bundled insurance policies and increased solo travelers are further projected to drive the travel insurance market growth across the globe.

Market Restraints

Impact of Geopolitical Conflicts on Limiting International Travel Across Regions

Geopolitical tensions, increasing cross-border disputes, and conflicts among countries might pose huge limitations to market growth. Limited travel to affected and other native countries and increased inbound tourism might further limit the growth of the market.

Market Opportunities

Sustainable Carbon Offsetting Practices to Bolster Market Growth

Rising awareness about sustainable travel policies and carbon offsetting has emerged as effective market opportunities. Stringent government policies and increasing awareness among tourists also drive the market. Several insurance companies offer carbon offsetting as an add-on service to optimize carbon emissions. Customers contribute toward carbon offset projects by balancing sustainability and carbon emissions.

SEGMENTATION ANALYSIS

By Travel Type

Single Trip Insurance to Dominate Market, Owing to Affordability and Reduced Complexity

By travel type, the market is classified as single trip, annual or multi-trip, and long stay.

The single trip segment is expected to hold the highest revenue market share in the global market. Single trip travel insurance is common globally, owing to the benefits offered by insurance companies and monetary limitations for international travel. Varying demographics, especially middle-aged and older groups, tend to take international trips as a result of cost-effectiveness, comprehensive coverage, and reduced complexity.

Annual or multi-trip travel to witness strong growth as a result of consistent business and leisure trips, additional travel benefits, and enhanced risk coverage. Increased spending capacity and awareness about travel risks to expand the annual or multi-trip insurance segment. 

By Insurance Type

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Medical & Accident Insurance Segment to Dominate Market Due to Growing Number of Elderly Travelers

Based on insurance type, the market is segmented into medical & accident insurance, travel and baggage insurance, trip insurance, and others. Others include comprehensive plans, natural disasters, and personal liability.

The medical & accident Insurance segment is expected to cater highest revenue market share. Increasing awareness about health risks, growth in tourist count, longer duration trips, and changing climate conditions challenge individual health. A growing number of elder tourists and high medical costs in tourist countries influence the segment for medical and accidental insurance coverage.

Trip insurance that includes coverage such as trip cancellation, trip interruption, flight delays, and others to witness the highest growth across emerging and developing countries. Uncertain climate conditions and unprecedented geopolitical scenarios result in flight delays and cancellations, especially impacting the travel industry. These factors might influence the demand for both inbound and outbound travel.

Travel and baggage insurance, and other coverages are expected to witness moderate growth during the forecast period.

By Distribution Channel

Convenience and Ease of Comparative Analysis to Make Online Platforms Dominant in Market

Based on the distribution channel, the market is segmented into online and offline.

The online segment is expected to cater highest revenue share in the market. Easy accessibility of insurance policies offered by various organizations, transparent pricing options, and comparative analysis are a few factors that result in the growth of online insurance booking. Young demographics, data availability over digital platforms, and AI-driven recommendations have also driven the market for online channels over offline.

However, offline channels providing travel policies are stagnantly growing in developing countries, especially among older consumers. The offline distribution channels are expected to witness slow or steady growth over the forecast period.

By End User Age Group

Mid-Aged Group Dominates Owing to Their Frequent Travel and Risk-Averse Behavioral Pattern

Based on the end-user age group, the market is segmented into millennials or youth, mid-aged group, and senior citizen. Millennials or youth that are below 25 years, the mid-aged group which includes travelers with an age range of 25 to 50 years, and senior citizens with the age of above 50 years.

The mid-aged group has the highest revenue share for the industry as a result of frequent business trips, and high disposable income of customers. Increased affordability, high number of business and leisure activities, long-duration trips, and minimal risk-taking capability further result in increased policy premiums.

The senior citizens segment witnesses the highest growth in purchasing insurance policies, owing to rising awareness about health risks, increased overseas travel, and the high cost of medical treatment.

Millennials or youth demographics are comparatively risk-friendly, along with limited affordability, and are expected to witness slow growth over the forecast period.

TRAVEL INSURANCE MARKET REGIONAL OUTLOOK

The market is classified as North America, Europe, Asia Pacific, the Middle East & Africa, and South America based on regions.

Europe

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Europe dominates the market as a result of the high level of cultural and historic tourism, stringent policies, and insurance mandates by the European countries. According to the United Nations World Tourism Organization, around 100 million tourists visited France in 2023. Along with supportive and flexible policies, key players in the market are expanding their policy offerings to generate market opportunities over the forecast period. Additionally, the COVID-19 pandemic also resulted in increased health awareness, generating strong market revenue for medical and covid-coverage travel policies.

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The U.K. dominates the market, owing to frequent business travels, increased awareness about health risks, a stringent policy framework, and a strong risk management culture. According to a Forbes Advisor study, in May 2025, around 77% of British people have purchased a travel policy in the past year.

North America

Regulatory mandates by the regional government are prominently impacting the growth in the North America market. For instance, in May 2025, the European Travel Information and Authorization System introduced mandatory medical insurance policies for people traveling to Europe, including the U.S.

The growing number of flight delays and trip cancellations is a prominent reason driving the market growth in the U.S. According to the U.S. Department of Transportation, in the U.S., around 87,943 flights were canceled, and 1.39 million flights were delayed in 2023. Medical emergencies, delayed flights, and canceled trips are resulting in premium growth of policies.

Asia Pacific

Uncertain climate conditions and a growing number of trip cancellations are driving the market in the region. However, international travel has grown at a rapid pace owing to visa exemptions and budget-friendly trips. Supportive government initiatives, growing group or solo travel culture, are resulting in the generation of insurance premiums. 

South America

Countries such as Brazil, Argentina, and others are attracting large numbers of tourists globally, driving the demand for insurance. The growing middle-class group and rising spending capability are acting as prominent factors for the market growth.

Middle East & Africa

Heavy investment and government initiatives to diversify the region’s economy into tourism and renewable sectors, apart from oil and gas dependency, are bolstering the number of policies generated. The region witnesses huge growth in the market as a result of tourism initiatives and investments in eco-tourism, including adventure and safari.

COMPETITIVE LANDSCAPE

KEY INDUSTRY PLAYERS

Comprehensive Product Launches and Collaborative Strategies to Boost Market Penetration

The market is highly fragmented, with the presence of a large number of players across regions. The rising number of domestic players in the market is further contributing to the market’s fragmentation.

Customized insurance plans across the travel industry, such as cruise-specific insurance, further expand the number of players in the market. Several prominent players are strategically collaborating or acquiring domestic players to boost their market presence across the globe. Several online companies are expanding their presence by providing travel advisory solutions along with comparative analysis of competitor portfolios.

LIST OF KEY TRAVEL INSURANCE COMPANIES PROFILED

• Allianz Global Assistance (Germany)
• AXA Assistance (France)
• AIG Travel (U.S.)
• Generali Global Assistance (Italy)
• Zurich Insurance Group (Switzerland)
• Chubb Travel Insurance (Switzerland)
• Tokio Marine HCC (Japan)
• Berkshire Hathaway Travel Protection (U.S.)
• Mapfre Assistance (Spain)
• Aviva (U.K.)
• MetLife (U.S.)
• RSA Insurance Group (U.K.)
• Sompo International (Japan)
• The Hartford (U.S.)
• Bupa Global (U.K.)
• Cigna Global (U.S.)
• ASSICURAZIONI Generali SPA (Italy)
• Ping An Insurance Company of China (China)
• Delphi Financial Group (U.S.)
• Seven Corners (U.S.)

KEY INDUSTRY DEVELOPMENTS

• May 2025: Allianz Partners Australia and Norwegian Cruise Line (NCL) together, in collaboration, launched cruise-specific travel insurance products. The new product includes benefits such as medical coverage, evacuation coverage, and others.
• May 2025: OneBefore partnered with Freedom Insurance to launch Travel Europe. The new product, Travel Europe, is focused on leisure travelers to Europe, which includes benefits such as medical coverage and others.
• January 2025: Urban Jungle, a U.K. Insurtech company, introduced multi-line insurance products that offer both home and insurance coverage.
• December 2024: Zurich, a travel insurer company, acquired AIG Travel Company to expand its offerings through its 200 distribution channels.
• August 2024: Trawick International unveiled an international insurance plan named Safe Travels AnyReason with embedded cancel for any reason benefits.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, travel type, insurance type, end user age group, distribution channel, and others. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

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REPORT SCOPE & SEGMENTATION