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The travel insurance market is projected to grow at a CAGR of 15.35% during the forecast period to reach US$86.391 billion by 2030, from US$49.650 billion in 2025.
Travel insurance is a protection policy for tourists and travelers covering unforeseen losses and damages while traveling. Most travel insurance plans primarily cover emergency medical bills while traveling abroad. However, comprehensive policies usually include trip cancellation, lost luggage, aircraft delays, public liability, and other costs. Travel insurance policies are usually available for both international tourists and domestic travelers.
Owing to the COVID-19 outbreak and the government-imposed lockdowns, the travel industry saw a massive decline in the market. However, the global tourism sector has been recovering past the pandemic, and the tourism sector is expected to see a considerable increase in revenue generation. The increase in revenge spending among people has been considered an essential factor in increasing tourism revenue. People are traveling more after the pandemic as the lockdown and travel restrictions have created enthusiasm in people to go out after being inside for very long.
In January 2022, international tourism continued to improve, with a substantially higher performance than in the first half of 2021. Global foreign tourist visits more than doubled (+130 percent) in January 2022 compared to January 2021, according to the UNWTO; the 18 million additional visitors reported in the first month of 2022 match the overall rise for the entire year of 2021.
With the increasing higher education market, the demand for travel insurance is also expected to rise after the virus outbreak. Students and parents, mostly from developing countries, have realized the potential for students to receive proper education in countries with developed educational environments. While most countries do not require travel insurance, some countries, like Germany, require mandatory travel insurance for students to acquire a Schengen visa. Travel agents also recommend getting travel insurance for countries that do not have public healthcare services, like the USA and China.
With the growing adoption of smartphones and handheld devices, travel bookings and insurance policies have become more accessible for the common people. Travel agency websites and services have made it easier for consumers to book, transact, and cancel tickets and bookings. These websites also offer rewards for domestic and international travelers throughout the year.
By geography, the travel insurance market is segmented into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. The major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. Some of the fastest-growing emerging economies are from this region, such as ASEAN countries.
India emerged as Asia's largest source market for outbound travelers in 2022, surpassing China, South Korea, and Japan. The latest report published at ITB Berlin 2024 indicates an impressive year-on-year rise of 190% for Indian outbound travelers, a sharp recovery from the depths of the pandemic. The developing economies of India and China are witnessing an increasing number of tourists outbound with increasing living standards and economic spending.
The market leaders for global travel insurance are Tata AIG General Insurance Company Limited, Berkshire Hathaway Specialty Insurance Company, AXA Travel Insurance, Seven Corners Inc., AGA Service Company, Aviva, Travel Insured International, Generali Global Assistance & Insurance Services, Travelex Insurance Services Inc., and USI Affinity Travel Insurance Services. These key players implement growth strategies such as product launches, mergers, acquisitions, etc., to gain a competitive advantage. For Instance,
| Report Metric | Details |
| Global Travel Insurance Market Size in 2025 | US$49.650 billion |
| Global Travel Insurance Market Size in 2030 | US$86.391 billion |
| Growth Rate | CAGR of 15.35% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in the Global Travel Insurance Market | |
| Customization Scope | Free report customization with purchase |