The Latest Travel Insurance Industry Statistics Explained
The global travel insurance market size was valued at USD 19.2 billion in 2019.
The statistic “The global travel insurance market size was valued at USD 19.2 billion in 2019” refers to the total monetary value of the global travel insurance industry as of the year 2019. This figure indicates the total revenue generated by travel insurance providers worldwide in that particular year. It signifies the substantial size and economic significance of the travel insurance market, highlighting the growing importance of insurance coverage for travelers seeking protection against unforeseen events such as trip cancellations, medical emergencies, or lost luggage. The market size serves as a key indicator of the demand for travel insurance products and the overall financial health and growth potential of the industry.
It is expected that the travel insurance market would grow at a CAGR of 4.7% from 2020 to 2027.
This statistic indicates that the travel insurance market is projected to increase in size at a Compound Annual Growth Rate (CAGR) of 4.7% from the year 2020 to 2027. A CAGR is a useful measure of growth over multiple time periods because it provides a smooth rate of growth that factors in the compounding effect. The forecast suggests that the demand for travel insurance policies is expected to gradually rise over the specified period, potentially driven by factors such as an increasing number of travelers, awareness of the benefits of travel insurance, and possibly changes in regulations or market dynamics. This growth rate can be utilized by insurers and other industry stakeholders to make informed decisions regarding investment, marketing, and strategic planning to capitalize on the expanding opportunities in the travel insurance market.
Europe held the largest travel insurance market share in 2019, accounting for over 45%.
The statistic indicates that in 2019, Europe was the dominant region in the global travel insurance market, with a market share exceeding 45%. This suggests that a significant portion of the global travel insurance industry was concentrated in European countries, highlighting the region’s importance and influence in providing insurance coverage for travelers. Factors such as the high volume of travel within and out of Europe, as well as the emphasis on ensuring travelers’ safety and security, likely contributed to Europe’s leading position in the market. This statistic underlines the region’s robust insurance industry and its role in offering protection and peace of mind to travelers.
Single-trip travel insurance policies constituted over 70% of the market share in 2019.
The statistic ‘Single-trip travel insurance policies constituted over 70% of the market share in 2019’ indicates that during the specified year, the majority of travel insurance policies purchased by consumers were for single trips rather than multi-trip or annual policies. This suggests that single-trip insurance was the most popular option among travelers seeking coverage for a specific journey without the need for ongoing or frequent protection. The substantial market share of over 70% highlights the strong preference for single-trip policies in the travel insurance industry in 2019, showcasing the dominant choice among consumers for short-term coverage.
Over 35% of travelers from the UK buy travel insurance.
The statistic ‘Over 35% of travelers from the UK buy travel insurance’ indicates the proportion of travelers from the UK who purchase travel insurance before embarking on their trips. This statistic suggests that a significant portion of UK travelers prioritize protecting themselves financially against unforeseen events that may arise during their travels, such as trip cancellations, medical emergencies, or lost baggage. It also highlights the awareness among UK travelers of the potential risks associated with traveling and the importance of mitigating those risks through insurance coverage. Additionally, the statistic may be used by insurance companies to target this market segment and tailor their marketing strategies to appeal to UK travelers seeking travel insurance for their trips.
The US travel insurance market was worth approximately USD 3.8 billion in 2018.
The statistic indicates that the total value of the US travel insurance market amounted to around USD 3.8 billion in the year 2018. This figure reflects the combined premium payments made by individuals or businesses to insurance companies for coverage during their travels. It suggests a substantial market size for travel insurance within the United States, reflecting the demand for financial protection against unforeseen events such as trip cancellations, medical emergencies, or lost luggage. The growth of the market may be influenced by factors such as increasing travel trends, awareness of the benefits of travel insurance, and the expanding range of insurance products available to consumers.
The Asia-Pacific region is expected to be the fastest-growing travel insurance market during 2020-2027.
The statement implies that the Asia-Pacific region is projected to experience the highest rate of growth in the travel insurance market compared to other regions from 2020 to 2027. This growth can be attributed to various factors such as increasing disposable income levels, rising awareness about the importance of travel insurance, expanding tourism industry, and evolving regulatory frameworks. The region’s diverse markets, including emerging economies and established tourism hubs, offer ample opportunities for insurance providers to tap into a growing customer base seeking coverage for their travel-related risks. Consequently, this statistic highlights the significant potential for the travel insurance sector in the Asia-Pacific region over the specified time period.
The travel insurance adoption rate has risen to 147% due to the COVID-19 pandemic.
The statistic that the travel insurance adoption rate has risen to 147% due to the COVID-19 pandemic indicates a significant increase in the number of individuals or travelers purchasing travel insurance compared to the baseline rate before the pandemic. A 147% increase suggests more than doubling the original adoption rate, reflecting a substantial surge in the popularity and perceived necessity of travel insurance in the current global health crisis. The impact of the pandemic on travel behavior, heightened concerns over trip cancellations, health risks, and disruptions have likely driven the increased adoption of travel insurance as people seek ways to protect themselves financially and medically while traveling. This statistic highlights the notable shift in consumer behavior and priorities in response to evolving circumstances and risks related to travel during the pandemic.
Insurance covering trip cancellation/interruption accounted for nearly 85% of the travel insurance claims in 2018.
This statistic indicates that trip cancellation/interruption insurance was the primary focus of travel insurance claims in 2018, comprising nearly 85% of all claims submitted. This suggests that travelers were most commonly affected by situations leading to the need for cancellation or interruption of their trips, such as unexpected emergencies, illness, or unforeseen circumstances. The high percentage associated with this type of insurance highlights the importance and relevance of coverage for trip cancellations or interruptions in ensuring financial protection and peace of mind for travelers when faced with unexpected events that may disrupt their travel plans.
Around 65% of the travel insurance policies include coverage for medical emergencies.
The statistic “Around 65% of the travel insurance policies include coverage for medical emergencies” indicates that a substantial majority of travel insurance policies offer protection for medical emergencies. This finding suggests that travelers have access to critical financial safeguards for unexpected health issues while abroad in the majority of cases. The availability of medical emergency coverage in such a large proportion of policies highlights the recognition within the travel insurance industry of the importance of addressing health-related risks faced by travelers. Overall, this statistic implies that most travelers have the opportunity to secure peace of mind and assistance in the event of a medical emergency during their journeys.
Over 45% of travelers claim insurance due to unforeseen illness or injury.
This statistic implies that a substantial proportion, specifically over 45%, of travelers purchase travel insurance primarily as a safeguard against unexpected illness or injury while on a trip. The data suggests that travelers are increasingly recognizing the potential risks associated with health emergencies abroad and therefore opt to mitigate these risks by investing in insurance coverage. This statistic underscores the importance of travel insurance as a means of financial protection and peace of mind for individuals venturing to unfamiliar destinations, highlighting the significant influence of health-related concerns on travel decision-making.
In the US, about 6.6% of travelers in 2019 made at least one insurance claim related to their trip.
The statistic stating that about 6.6% of travelers in the US made at least one insurance claim related to their trip in 2019 indicates the prevalence of incidents or issues encountered by travelers that necessitated filing an insurance claim. This figure suggests that a relatively small percentage of travelers experienced events such as trip cancellations, delays, lost luggage, or medical emergencies during their travels that required financial protection through insurance. Understanding this statistic can help insurance companies assess their risk exposure and develop appropriate coverage plans, while also highlighting the importance for travelers to consider purchasing travel insurance to mitigate the potential financial impact of unexpected events while on a trip.
In 2018, around 42.6 million insurance policies were sold in the USA itself.
The statistic states that in 2018, there were approximately 42.6 million insurance policies sold within the United States. This figure represents the total number of insurance policies that were purchased by individuals or businesses throughout the country during that specific year. The high number of policies sold indicates a significant demand for insurance coverage among the population. This statistic can be used to analyze trends in the insurance industry, understand the level of risk management and financial protection adopted by individuals and businesses, and assess the overall economic impact of insurance transactions within the USA. It also highlights the importance of insurance as a form of financial security for individuals and organizations against unexpected events and risks.
In India, the travel insurance sector has registered 40% year-on-year growth, primarily due to an increase in overseas travel.
The statistic states that the travel insurance sector in India has experienced a significant annual growth rate of 40%, which can be attributed mainly to the rise in overseas travel among Indian residents. This substantial growth indicates an increasing awareness and recognition of the importance of travel insurance among travelers, likely driven by a growing understanding of the potential risks and uncertainties associated with international travel. The surge in overseas travel suggests a shift in preferences towards exploring international destinations, prompting more individuals to secure travel insurance to protect themselves against unforeseen circumstances such as trip cancellations, medical emergencies, or loss of luggage. Overall, this statistic underscores the evolving dynamics of the Indian travel market and the corresponding surge in demand for travel insurance products.
The family traveler segment is expected to exhibit the highest CAGR of 17.3% from 2021 to 2028.
The statement indicates that the family traveler segment is projected to experience the highest Compound Annual Growth Rate (CAGR) of 17.3% between 2021 and 2028. This growth rate suggests significant expansion in the number of family travelers over the specified time period. The CAGR is a useful measure for assessing the consistent annual growth rate of a specific market segment, in this case, family travelers. The high CAGR of 17.3% implies a strong upward trend in the demand for travel among families, reflecting potential opportunities for businesses operating in the travel and tourism industry to cater specifically to this segment. Additionally, it highlights the importance of understanding and targeting the preferences and needs of family travelers to capitalize on this anticipated growth trend.
The travel insurance market in the Middle East is expected to grow at a CAGR of 12.3% during 2020-2028.
This statistic indicates that the travel insurance market in the Middle East is projected to experience a Compound Annual Growth Rate (CAGR) of 12.3% over the period from 2020 to 2028. This growth rate serves as a forecast of how the market is expected to expand annually during this time frame. A CAGR of 12.3% suggests a significant upward trend in the demand for travel insurance in the Middle East region, indicating potential opportunities for insurance providers to capitalize on this growth. Factors such as increasing travel activities, rising awareness of the importance of insurance coverage, and economic developments in the region could be driving this anticipated growth in the travel insurance market.
References
0. – https://www.www.insurancebusinessmag.com
1. – https://www.www.grandviewresearch.com
2. – https://www.www.statista.com
3. – https://www.timesofindia.indiatimes.com
4. – https://www.menafn.com
5. – https://www.www.insurancejournal.com
6. – https://www.www.squaremouth.com
7. – https://www.www.finder.com.au
8. – https://www.www.alliedmarketresearch.com
9. – https://www.www.travelinsurance.com
10. – https://www.www.businesstravelnews.com
