Global Travel Insurance Market Size, Share, Opportunities, And Trends By Type of Insurance Plan (Trip Cancellation Insurance, Baggage or Personal Item Loss Insurance, Medical Insurance, Others), By Application (Domestic, International), By Type of Travel (Business, Leisure, Education), And By Geography - Forecasts From 2025 To 2030

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.

• The European tourism industry is experiencing a robust recovery in the first months of 2024 compared to the pre-pandemic levels. Based on data from reporting destinations, foreign arrivals (+7.2%) and overnights (+6.5%) in the first quarter of the year surpassed 2019 figures. The recovery is largely driven by strong intra-regional travel fuelled by Germany, France, Italy, and the Netherlands. This is coupled with demand from the US, which is the major source market.

What are the drivers of the global travel insurance market?

• Increase in travel after the pandemic

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.

• Higher education market to augment the growth

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.

• Advancements in the sector

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.

What are the key geographical trends shaping the global travel insurance market?

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.

Global travel insurance market challenges:

• Travel insurance has become an important asset for travelers worldwide. Some countries have even made travel insurance mandatory for international tourists. However, despite the significant potential of travel insurance, it is still a secondary choice for travelers from developing or small countries. Developing countries consider travel insurance unnecessary due to its non-economical and expensive pricing. The fall in the economic growth of developing nations would consequently decrease the scope of the travel industry and the travel insurance market.

Key developments in the global travel insurance market:

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,

• In December 2024, American International Group, Inc. successfully closed the sale of its global individual personal travel insurance and assistance business, including Travel Guard, to Zurich Insurance Group in December 2024. The definitive agreement was signed in June 2024; the sale excludes Japan, AIG’s joint venture arrangement in India, and travel coverages are offered through AIG’s Group Accident & Health business. Zurich Insurance Group acquired AIG’s global personal travel insurance and assistance business (AIG Travel) for USD 600 million, plus a potential additional earn-out payment.
• In September 2024, SiriusPoint Ltd. partnered with Gigasure, an insurtech startup offering personalized travel insurance. Gigasure, launched in August 2024, is offering personalized travel insurance for travellers and backpackers. Gigasure customers can customize their insurance policies to meet their needs and budget. Policyholders can enhance their cover through the Gigasure app.
• In June 2024, Collinson partnered with World Nomads. World Nomads is a global travel insurance provider, including the launch of a new Annual Multi-Trip (AMT) product in the UK & Ireland. The latest product range would enhance the customer experience with increased coverage limits and new benefits for annual and single-trip policies. They also had the innovative parametric service SmartDelayTM. Collinson would be responsible for underwriting the AMT product and world nomad customers using its new parametric product, SmartDelay.
• In May 2022, IMG launched the iTravelInsured Essential, its most affordable travel protection policy, allowing travelers to protect their pre-paid, non-refundable trip expenses with essential travel insurance coverage, applicable to U.S. citizens traveling within the U.S.

Travel insurance market scope:

 

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	Type of Insurance Plan Application Type of Travel Geography
Geographical Segmentation	North America, South America, Europe, Middle East and Africa, Asia Pacific
List of Major Companies in the Global Travel Insurance Market	Tata AIG General Insurance Company Limited Berkshire Hathaway Specialty Insurance Company AXA Travel Insurance Seven Corners Inc. AGA Service Company
Customization Scope	Free report customization with purchase

 

The global travel insurance market is analyzed into the following segments:

• By Type of Insurance Plan
  • Trip Cancellation Insurance
  • Baggage or Personal Item Loss Insurance
  • Medical Insurance
  • Others
• By Application
  • Domestic
  • International
• By Type of Travel
  • Business
  • Leisure
  • Education
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Rest of the Middle East and Africa
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Rest of Asia-Pacific

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key benefits for the stakeholders

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Process

2.3. Data Validation

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. Analyst View

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Supplier

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4.  Industry Value Chain Analysis

5. TRAVEL INSURANCE MARKET BY TYPE OF INSURANCE PLAN 

5.1. Introduction

5.2. Trip Cancellation Insurance

5.3. Baggage or Personal Item Loss Insurance

5.4. Medical Insurance

5.5. Others

6. TRAVEL INSURANCE MARKET BY APPLICATION 

6.1. Introduction

6.2. Domestic

6.3. International

7. TRAVEL INSURANCE MARKET BY TYPE OF TRAVEL

7.1. Introduction

7.2. Business

7.3. Leisure

7.4. Education

8. TRAVEL INSURANCE MARKET BY GEOGRAPHY

8.1. Global Overview

8.2. North America

8.2.1. United States

8.2.2. Canada

8.2.3. Mexico

8.3. South America

8.3.1. Brazil

8.3.2. Argentina

8.3.3. Rest of South America

8.4. Europe

8.4.1. United Kingdom

8.4.2. Germany

8.4.3. France

8.4.4. Italy

8.4.5. Spain

8.4.6. Rest of Europe

8.5. Middle East and Africa

8.5.1. Saudi Arabia

8.5.2. United Arab Emirates

8.5.3. Rest of the Middle East and Africa

8.6. Asia-Pacific

8.6.1. China

8.6.2. India

8.6.3. Japan

8.6.4. South Korea

8.6.5. Taiwan

8.6.6. Thailand

8.6.7. Indonesia

8.6.8. Rest of Asia-Pacific

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Emerging Players and Market Lucrativeness

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. Tata AIG General Insurance Company Limited

10.2. Berkshire Hathaway Specialty Insurance Company

10.3. AXA Travel Insurance

10.4. Seven Corners Inc.

10.5. AGA Service Company

10.6. Aviva

10.7. Travel Insured International

10.8. Generali Global Assistance & Insurance Services

10.9. Travelex Insurance Services Inc.

10.10. USI Affinity Travel Insurance Services

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.

USI Affinity Travel Insurance Services