Travel insurance: Key market research findings
- Expansion of travel and tourism sector boosts market growth
- EMEA dominates the market geographically
- Key vendors – CSA Travel Protection, Travel Safe, USI Affinity, and Seven Corners
Technavio’s market research analysts predict the global travel insurance market to grow at a CAGR of around 12% between 2016 and 2020. The market’s growth is driven primarily by the growing tourism and business travel sectors. Travel insurance is considered as a part of the bundled cost of travel packages, as such policies cover medical or hospitalization expenses, baggage losses, and trip cancellation charges among others. During 2015, EMEA dominated the global travel insurance market with a share of almost 36%. The emergence of new channels and partnerships in the travel insurance market is expected to drive growth in the travel insurance market in EMEA during the forecast period.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“Of late, there has been an increase in multi-trip policies in the market. Growing number of people who can afford multiple holidays in foreign destinations are more likely to purchase annual multi-trip policies. The rising popularity of packaged bank accounts that offer annual travel insurance for a set monthly fee is also fueling this trend. ICICI Lombard is an example of such multi-trip policy,” says Bharath Kanniappan, Lead Analyst, Industrial Automation, Technavio Research.
The recent increase in the number of low-cost airlines globally plays a key role in the growth of the market. This rise in the number of airlines results in an increase in the number of air passengers. Growing number of air passengers has triggered pressure on the civil aviation industry worldwide. A key outcome of such pressure manifests itself in the growing number of flight cancellations. As a result, there is an upsurge in the demand for travel insurance among consumers.
The key vendors in the market include CSA Travel Protection, Travel Safe, USI Affinity, and Seven Corners. The global travel insurance market is in its growth stage and is an extremely attractive market owing to its high growth potential. With the increase in the number of insurers, shipping policies on time becomes a challenge for many of the private insurance companies. To mitigate these challenges, insurance companies are venturing into tie-ups with travel agents to cut down on the cost and time incurred in the distribution of travel insurance policies.
A more detailed analysis is available in the Technavio report, Global Travel Insurance Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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