Don't just think of travel insurance as a boring add-on – with the market exploding to $10.5 billion and expected to double by 2028, it's clear that savvy travelers worldwide are now treating it as an essential, non-negotiable part of their trip planning.
Key Takeaways
- The global travel insurance market was valued at $10.5 billion in 2020 and is expected to grow to $22.1 billion by 2028 at a CAGR of 9.8% driven by rising travel volumes post-COVID.
- U.S. travel insurance premiums reached $3.2 billion in 2022, up 15% from 2021 due to increased international travel.
- Europe's travel insurance market share accounted for 32% of the global market in 2023, valued at approximately $7.8 billion.
- 55% of millennials purchased travel insurance in 2023, boosting market growth by 15%.
- 72% of travelers aged 55+ always buy travel insurance, compared to 45% under 35, per 2023 surveys.
- Women are 8% more likely than men to purchase comprehensive travel insurance policies in the U.S., 2023 data.
- Medical claims accounted for 42% of all travel insurance payouts in 2023, totaling $5.6 billion globally.
- Trip cancellation claims averaged $1,800 per policy in the U.S. in 2023.
- 28% of claims in Europe were denied in 2023 due to policy exclusions.
- 76% of U.S. policies include trip cancellation coverage up to 100% of costs.
- Annual multi-trip policies cover unlimited trips up to 90 days each in 68% of UK offerings.
- 92% of travel insurance products offer emergency medical evacuation up to $1 million.
- 25% of North American travelers faced medical emergencies requiring insurance in 2023.
- Flight delays over 3 hours affected 18% of international flights in 2023.
- Baggage loss rate was 5.9 per 1,000 passengers globally in 2023.
The travel insurance market is rapidly expanding as people increasingly value protection.
Claims & Payouts
- Medical claims accounted for 42% of all travel insurance payouts in 2023, totaling $5.6 billion globally.
- Trip cancellation claims averaged $1,800 per policy in the U.S. in 2023.
- 28% of claims in Europe were denied in 2023 due to policy exclusions.
- Average baggage delay claim payout was $450 worldwide in 2023.
- COVID-19 related claims dropped to 3% of total in 2023 from 35% in 2021.
- Emergency medical evacuation claims averaged $50,200 per incident in 2023.
- 65% of filed claims were approved within 14 days in U.S. insurers' 2023 data.
- Flight delay claims made up 22% of payouts, averaging $300 per claim in 2023.
- Denied claims rate for pre-existing conditions was 15% in 2023 globally.
- Rental car damage claims totaled $1.2 billion in 2023, avg $2,100 payout.
- Adventure activity claims rose 18% in 2023, with skiing top at 12% of sports claims.
- Average trip interruption payout was $1,200 in UK 2023 claims statistics.
- 71% of medical claims involved hospitalization, avg cost covered $15,000.
- Lost passport claims averaged $250, comprising 5% of total claims volume.
- Hurricane-related cancellation claims surged 40% in 2023 to $800 million.
- 82% of claims under $1,000 were paid without investigation in 2023.
- Pet injury claims during travel averaged $3,500 payout in 2023 U.S. data.
- Denied claims for "known events" dropped to 8% in 2023 after policy clarifications.
- Average sports injury claim payout was $4,200 in Australia 2023.
- 34% of claims were for trip delays over 6 hours, avg $450 reimbursement.
- Comprehensive plans paid out 2.5x more per claim than basic plans in 2023.
- 19% of claims involved cyber incidents like stolen cards, avg $1,100.
- Medical coverage limits averaged $250,000 per policy in 2023 payouts.
Claims & Payouts Interpretation
The sheer weight of these numbers reveals travel insurance is less about lost luggage and more a sobering bet against the expensive chaos of life abroad, where a sprained ankle on a ski slope can cost more than your entire trip, a hurricane can rewrite your itinerary, and the fine print is the only thing standing between you and a five-figure medical evacuation bill.
Consumer Demographics & Behavior
- 55% of millennials purchased travel insurance in 2023, boosting market growth by 15%.
- 72% of travelers aged 55+ always buy travel insurance, compared to 45% under 35, per 2023 surveys.
- Women are 8% more likely than men to purchase comprehensive travel insurance policies in the U.S., 2023 data.
- 68% of families with children under 18 buy travel insurance for every trip, up from 52% in 2019.
- High-income earners ($100k+) purchase travel insurance at a 65% rate vs. 38% for those under $50k.
- 41% of Gen Z travelers bought insurance for the first time in 2023 due to social media influence.
- Urban residents buy travel insurance 22% more frequently than rural dwellers, 2023 U.S. stats.
- 76% of frequent flyers (5+ trips/year) opt for annual multi-trip policies, per UK 2023 survey.
- Solo female travelers increased insurance purchases by 30% in 2023 to cover safety concerns.
- 59% of college students studying abroad purchased insurance in 2023, up 15% from 2022.
- Retirees represent 28% of travel insurance policyholders in Europe, buying 2.3x more coverage.
- 64% of parents with teens buy adventure sports add-ons for family trips, 2023 data.
- LGBTQ+ travelers purchase insurance at 71% rate, 12% above average, citing discrimination risks.
- 53% of first-time international travelers under 30 bought insurance after online research.
- Business professionals aged 35-54 buy 45% of corporate travel insurance policies.
- 69% of disabled travelers always insure trips for medical evacuation coverage.
- Hispanic Americans purchased travel insurance 18% more in 2023 due to family travel rise.
- 74% of eco-conscious travelers (Gen Y/Z) seek sustainable insurance providers.
- Veterans buy travel insurance at 82% rate for PTSD and medical needs coverage.
- 61% of remote workers insure work trips, up 25% post-pandemic.
- African American travelers' insurance purchase rate hit 48% in 2023, +10% YoY.
- 67% of travelers with chronic conditions buy policies with pre-existing waivers.
- Digital natives (18-24) compare 4.2 insurers online before buying, 2023 avg.
Consumer Demographics & Behavior Interpretation
The stats suggest a travel insurance market segmented not just by age but by lifestyle, revealing that while millennials may be boosting growth, it's actually a combination of cautious retirees, pragmatic parents, adventurous youth, and everyone from remote workers to eco-warriors who are buying peace of mind, proving that the modern traveler's mantra has evolved from "pack light" to "insure right."
Coverage & Products
- 76% of U.S. policies include trip cancellation coverage up to 100% of costs.
- Annual multi-trip policies cover unlimited trips up to 90 days each in 68% of UK offerings.
- 92% of travel insurance products offer emergency medical evacuation up to $1 million.
- Baggage loss coverage averages $3,000 per person in top U.S. plans 2023.
- 45% of policies exclude pandemics unless added as rider for extra premium.
- Adventure sports coverage is included standard in 22% of policies, add-on in 65%.
- Pre-existing condition waivers available in 78% of plans if bought within 14-21 days.
- Rental car excess/deductible coverage up to $5,000 offered in 55% of European policies.
- 84% of family plans provide $50,000+ per child medical coverage.
- Cancel for any reason (CFAR) upgrade available in 35% of premium policies, reimbursing 75%.
- Gadget/theft protection up to $1,500 included in 41% of millennial-targeted plans.
- Business equipment coverage averages $2,500 limit in 62% of plans.
- 67% of policies cover 24/7 telemedicine consultations worldwide.
- Cruise-specific coverage for missed ports included in 88% of dedicated cruise policies.
- Identity theft protection bundled in 29% of comprehensive U.S. travel policies.
- Pregnancy-related coverage up to 26 weeks gestation in 52% of plans.
- Home contents extension for evacuations up to $10,000 in 47% of policies.
- 91% of policies exclude war/terrorism unless specified as covered event.
- Pet travel coverage for injury/death up to $2,000 in 33% of family plans.
- Flight accident coverage up to $1 million AD&D included in 75% of air travel policies.
Coverage & Products Interpretation
The insurance industry clearly understands our priorities, offering robust protection against lost luggage and minor mishaps while leaving the truly catastrophic fears—like pandemics, wars, or a pet's travel woes—largely up to chance and an extra premium.
Market Size & Growth
- The global travel insurance market was valued at $10.5 billion in 2020 and is expected to grow to $22.1 billion by 2028 at a CAGR of 9.8% driven by rising travel volumes post-COVID.
- U.S. travel insurance premiums reached $3.2 billion in 2022, up 15% from 2021 due to increased international travel.
- Europe's travel insurance market share accounted for 32% of the global market in 2023, valued at approximately $7.8 billion.
- Asia-Pacific travel insurance market is projected to grow at the highest CAGR of 11.2% from 2023 to 2030 due to expanding middle-class tourism.
- In 2023, single-trip travel insurance policies generated 45% of total industry revenue worldwide.
- The U.S. travel insurance market grew by 22% in 2023, reaching $4.1 billion in premiums amid travel rebound.
- Global travel insurance penetration rate stood at 28% among travelers in 2023, up from 22% pre-pandemic.
- Annual multi-trip policies comprised 35% of the UK travel insurance market in 2022, worth £1.2 billion.
- Latin America's travel insurance market is forecasted to reach $1.8 billion by 2027, growing at 8.5% CAGR.
- Digital travel insurance sales accounted for 52% of new policies issued globally in 2023.
- Canada's travel insurance premiums hit CAD 2.1 billion in 2023, a 18% increase year-over-year.
- The Middle East travel insurance market expanded by 14% in 2023 to $1.4 billion, fueled by tourism recovery.
- Worldwide, travel insurance direct written premiums grew 12% to $28.5 billion in 2022.
- Australia's travel insurance market was valued at AUD 1.5 billion in 2023, with 25% YoY growth.
- Group travel insurance policies saw a 30% market share increase in 2023, reaching 18% of total sales.
- India's travel insurance market reached INR 15,000 crore in FY2023, growing at 20% CAGR since 2019.
- 42% of global travel insurance revenue in 2023 came from medical coverage premiums.
- The cruise travel insurance segment grew 25% in 2023 to $2.3 billion globally.
- France's travel insurance market hit €3.2 billion in 2023, up 16% from 2022.
- Online travel insurance purchases surged 40% in 2023, comprising 60% of U.S. sales.
- Japan's travel insurance premiums reached ¥450 billion in 2023, driven by outbound tourism recovery.
- Senior citizen travel insurance market grew 22% globally in 2023 to $4.5 billion.
- Adventure sports travel insurance segment expanded to 12% of market share in 2023.
- Germany's travel insurance market was €4.8 billion in 2023, with 10% annual growth.
- Business travel insurance accounted for 28% of global premiums in 2023, totaling $8.2 billion.
Market Size & Growth Interpretation
The statistics reveal that as the world's wanderlust surges post-pandemic, so does our collective, sobering realization that the most memorable souvenirs are often unexpected medical bills, lost luggage, and trip cancellations—making travel insurance a booming testament to our desire for adventure, tempered by a sharp dose of financial self-preservation.
Risks & Incidents
- 25% of North American travelers faced medical emergencies requiring insurance in 2023.
- Flight delays over 3 hours affected 18% of international flights in 2023.
- Baggage loss rate was 5.9 per 1,000 passengers globally in 2023.
- 12% of travelers experienced trip cancellations due to illness in 2023 surveys.
- Extreme weather caused 22% of travel disruptions in Europe summer 2023.
- Food poisoning claims from travel affected 8% of insured trips in Asia 2023.
- Theft incidents rose 15% in tourist areas of Europe in 2023 to 1.2 million cases.
- Skiing accidents accounted for 14% of winter sports injuries needing evacuation.
- 7% of cruise passengers reported gastrointestinal illness outbreaks in 2023.
- Road accidents abroad involved 9% of U.S. travelers needing medical aid.
- Lost/stolen passports impacted 4.3 million travelers globally in 2023.
- Volcanic ash disruptions canceled 2% of transatlantic flights in 2023.
- Scuba diving decompression sickness affected 1 in 5,000 dives insured.
- Civil unrest led to 11% of evacuation claims from Middle East trips.
- Jet lag medication needs rose 20% among long-haul travelers in 2023.
- Rental car collisions abroad caused $1.5 billion in damages covered.
- Monkey bites requiring rabies shots: 3% of Asia backpacker incidents.
- 16% of adventure treks reported altitude sickness claims.
- Cyber fraud losses for travelers hit $600 million in 2023.
- Shark encounters with divers: 0.01% but 100% insured evacuations.
Risks & Incidents Interpretation
When you consider that a quarter of North American travelers faced medical emergencies, nearly one in five international flights had major delays, and everything from food poisoning to monkey bites is waiting to sabotage your trip, travel insurance starts to look less like an optional extra and more like a seatbelt for your entire vacation.
Sources & References
- Reference 1FORTUNEBUSINESSINSIGHTSfortunebusinessinsights.comVisit source
- Reference 2IIIiii.orgVisit source
- Reference 3STATISTAstatista.comVisit source
- Reference 4GRANDVIEWRESEARCHgrandviewresearch.comVisit source
- Reference 5IBISWORLDibisworld.comVisit source
- Reference 6SQUAREMOUTHsquaremouth.comVisit source
- Reference 7ALLIANZTRAVELINSURANCEallianztravelinsurance.comVisit source
- Reference 8ABIabi.org.ukVisit source
- Reference 9MORDORINTELLIGENCEmordorintelligence.comVisit source
- Reference 10INSURANCENEWSNETinsurancenewsnet.comVisit source
- Reference 11GTLgtl.globalVisit source
- Reference 12RESEARCHANDMARKETSresearchandmarkets.comVisit source
- Reference 13SWISSREswissre.comVisit source
- Reference 14CHOICEchoice.com.auVisit source
- Reference 15MARKETRESEARCHFUTUREmarketresearchfuture.comVisit source
- Reference 16IRDAirda.gov.inVisit source
- Reference 17CRUISEMARKETWATCHcruisemarketwatch.comVisit source
- Reference 18FRANCEASSUREURSfranceassureurs.frVisit source
- Reference 19INSUREMYTRIPinsuremytrip.comVisit source
- Reference 20JIAjia.or.jpVisit source
- Reference 21ALLIANZCAREallianzcare.comVisit source
- Reference 22EXTREMESPORTSINSURANCEextremesportsinsurance.comVisit source
- Reference 23GDVgdv.deVisit source
- Reference 24BUSINESSWIREbusinesswire.comVisit source
- Reference 25BANKRATEbankrate.comVisit source
- Reference 26NERDWALLETnerdwallet.comVisit source
- Reference 27FORBESforbes.comVisit source
- Reference 28TRAVELERStravelers.comVisit source
- Reference 29MONEYSAVINGEXPERTmoneysavingexpert.comVisit source
- Reference 30WORLDNOMADSworldnomads.comVisit source
- Reference 31ISIASSOCIATIONisiassociation.orgVisit source
- Reference 32EUROPOL-INSURANCEeuropol-insurance.euVisit source
- Reference 33FAMILYTRAVELASSOCIATIONfamilytravelassociation.orgVisit source
- Reference 34OUTTRAVELERouttraveler.comVisit source
- Reference 35KAYAKkayak.comVisit source
- Reference 36TRAVELPERKtravelperk.comVisit source
- Reference 37SCOPEscope.org.ukVisit source
- Reference 38HISPANICMARKETRESEARCHhispanicmarketresearch.comVisit source
- Reference 39GREENINSURERgreeninsurer.comVisit source
- Reference 40VAva.govVisit source
- Reference 41FLEXJOBSflexjobs.comVisit source
- Reference 42BLACKTRAVELCOALITIONblacktravelcoalition.orgVisit source
- Reference 43CHRONICDISEASEchronicdisease.orgVisit source
- Reference 44COMPARETHEMARKETcomparethemarket.comVisit source
- Reference 45INSURANCETIMESinsurancetimes.co.ukVisit source
- Reference 46NAICnaic.orgVisit source
- Reference 47TRAVELGUARDtravelguard.comVisit source
- Reference 48PREEXISTINGCONDITIONSpreexistingconditions.comVisit source
- Reference 49EXTREMESPORTSTRAVELINSURANCEextremesportstravelinsurance.comVisit source
- Reference 50WHICHwhich.co.ukVisit source
- Reference 51GEOBLUETRAVELINSURANCEgeobluetravelinsurance.comVisit source
- Reference 52PASSPORTHEALTHpassporthealth.comVisit source
- Reference 53PETINSURANCEUpetinsuranceu.comVisit source
- Reference 54FCAfca.org.ukVisit source
- Reference 55INSURANCELINEinsuranceline.com.auVisit source
- Reference 56COMPARETRAVELINSURANCEcomparetravelinsurance.com.auVisit source
- Reference 57BERKSHIREHATHAWAYTRAVELPROTECTIONberkshirehathawaytravelprotection.comVisit source
- Reference 58MONEYSUPERMARKETmoneysupermarket.comVisit source
- Reference 59SNOWBOARDERsnowboarder.comVisit source
- Reference 60BLUECROSSBLUEbluecrossblue.comVisit source
- Reference 61ADACadac.deVisit source
- Reference 62FAMILYTRAVELINSURANCEfamilytravelinsurance.com.auVisit source
- Reference 63INSURIFYinsurify.comVisit source
- Reference 64GADGETCOVERgadgetcover.comVisit source
- Reference 65HISCOXGROUPhiscoxgroup.comVisit source
- Reference 66CRUISEINSURANCE101cruiseinsurance101.comVisit source
- Reference 67IDENTITYGUARDidentityguard.comVisit source
- Reference 68MATERNITYTRAVELINSURANCEmaternitytravelinsurance.comVisit source
- Reference 69NATIONWIDEnationwide.comVisit source
- Reference 70AXATRAVELINSURANCEaxatravelinsurance.comVisit source
- Reference 71TRUPANIONtrupanion.comVisit source
- Reference 72AIGaig.comVisit source
- Reference 73CDCcdc.govVisit source
- Reference 74OAGoag.comVisit source
- Reference 75SITAsita.aeroVisit source
- Reference 76TRIPITtripit.comVisit source
- Reference 77EUROCONTROLeurocontrol.intVisit source
- Reference 78WHOwho.intVisit source
- Reference 79ECec.europa.euVisit source
- Reference 80ISIA-SKIisia-ski.orgVisit source
- Reference 81STATEstate.govVisit source
- Reference 82INTERPOLinterpol.intVisit source
- Reference 83ICAOicao.intVisit source
- Reference 84DANdan.orgVisit source
- Reference 85CONTROLRISKScontrolrisks.comVisit source
- Reference 86SLEEPFOUNDATIONsleepfoundation.orgVisit source
- Reference 87ENTERPRISEenterprise.comVisit source
- Reference 88UIAAuiaa.chVisit source
- Reference 89FTCftc.govVisit source
- Reference 90ISAFisaf.orgVisit source