The global travel insurance market was valued at almost USD 17 billion in 2016 and is expected to reach around USD 26 billion by 2021.
Procurement market intelligence analysts have announced its latest market research report on travel insurance for the period 2017-2021. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the travel insurance market during the forecast period. Some of the top vendors listed in this industry analysis include Europ Assistance, AIG, AXA, Berkshire Hathaway, and Allianz.
In 2016, Europe accounted for around 36% of the overall market share to become the dominant revenue contributing geographical segment of the global market for travel insurance. The growth of the market is due to the increase in distribution channels and increased number of travelers who are above 60 years of age.
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According to Angad Singh, a procurement specialist at Technavio for research on category spend intelligence, “A large number of suppliers in the market are adopting new methods of sourcing customers for travel insurance policies. For example, they are forming tie-ups with travel agents, banks, and intermediaries to increase visibility and enhance ease of access and convenience. Such an approach enables suppliers to increase their reach and capture market share.”
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The new procurement market intelligence report analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Availability of bundled travel insurance policies
Bundled travel insurance policies provide coverage for multiple contingencies, which include medical care, pre-existing medical conditions, trip cancelation, and loss of baggage. Such policies are becoming increasingly popular and being adopted on a large scale across the globe owing to their ability to provide customers with wide-ranging coverage in a cost-effective manner, especially when traveling to countries where the cost of medical care can be very high.
Growing demand for annual multi-trip policies
Annual multi-trip policies cover more than one trip during the coverage period. Advantages such as cost-effectiveness and elimination of the need to procure policies every time users need to travel offered by these policies are propelling their demand in the global market. The rise in demand for annual multi-trip policies is, in turn, facilitating the growth of the global travel insurance market.
Government policies mandating travel medical coverage
Schengen visas can be used to travel between 26 countries that are a party to the Schengen Borders Agreement. As a result, individuals traveling across these countries obtain this visa to facilitate movement across the borders of these countries without the hassle of obtaining separate visas for each country. However, guidelines mandate a medical coverage of at least EUR 30,000 to obtain a Schengen visa. As a result, there is an increased demand for travel insurance, especially ones with minimum coverage, which leads to market growth.
A more detailed analysis is available in the procurement market intelligence report titled, ‘Global Travel Insurance – Procurement Market Intelligence 2017’.
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