By; OLIVIA NNOROM
As per the report by Global Market Insights, Inc. “Worldwide Travel Insurance market was valued USD 15 billion in 2020 and will surpass a revenue collection of USD 35 billion by 2027 with an annual growth rate of 11% over 2021 to 2027.”
The travel insurance market is expected to observe substantial growth by 2027 driven by booming consumer interest in key regions across the globe. Moreover, increasing demand for travel insurance policies with COVID-19 coverage is slated to further propel market growth through the forecast period.
The government-imposed lockdown restrictions forced people to stay indoors, bringing leisure travel to a halt, which brought about a steep decline in travel and tourism activities.
With successful vaccination drives and increasing governmental emphasis on economic recovery, the tourism industry is gradually regaining pre-COVID momentum, which has impelled the need for travel insurance policies among travelers.
Additionally, industry players are focusing on providing attractive travel insurance policies to extend their consumer reach. As a result, rising availability of policies with wide-ranging coverage options, including COVID-19 coverage, has been favorable for industry expansion.
The travel insurance market has been bifurcated in terms of type, trip, provider, end-use, and region. Based on provider, the market has further been segmented into banks, insurance company, and others.
The others provider segment is set to witness strong growth by 2027, expanding at a steady CAGR through the assessment timeframe. Growing number of intermediaries upgrading their offerings by integrating Global Distribution System (GDS) to enable transactions among travel service operators is projected to promote segmental expansion in the coming years.
The travel insurance market has been divided into corporate travelers, senior citizens, education travelers, family travelers, backpacker & adventure travelers, and others.
The senior citizens end-use segment held a notable share in the market in 2020 and is anticipated to grow at a stable pace over 2021-2027. Surging demand for travel insurance policies that offer coverage for pre-existing and specific age-related health issues is foreseen to spur segmental growth over the review timeline.
The education travelers end-use segment is projected to observe considerable revenue growth by 2027, progressing at a solid CAGR over the analysis period. Rising number of students pursuing higher education in foreign countries is expected to boost segmental demand in the forthcoming years.
The travel insurance industry share from the others end-use segment is estimated to see substantial growth through 2027. Mounting need for travel insurance policies that provide emergency medical repatriation expenses for any activity performed on the specific expedition is calculated to fuel segmental development over the following years.
The Latin America travel insurance market is speculated to see robust growth by 2027, registering a sturdy CAGR through the forecast period. Growth of the tourism industry in LATAM is likely to stimulate regional market growth in the future.
Some of the key players profiled in the travel insurance market report include Allianz Partners, American Express Company, American International Group, Inc. (AIS), Arch Capital Group Limited, Aviva PLC, AXA Travel Insurance, Berkshire Hathaway Specialty Insurance, China Pacific Insurance, (Group) Co., Ltd., Chubb Limited, Generali Group, Groupama Sigorta AS, HanseMerkur Reiseversicherung AG
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