Canada Travel Insurance Market Overview, 2030

The travel insurance market in Canada has evolved significantly from its early roots in marine and accident coverage into today’s comprehensive bundled packages that include medical emergencies, trip cancellations, baggage protection, and specialized add-ons tailored for modern travelers. Historically, Canadians relied on limited accident and health policies when traveling abroad, but with the globalization of travel and Canada’s strong outbound tourism, the industry transformed into a robust risk-mitigation sector. Key shocks have played a defining role in shaping this market: events such as the SARS outbreak in 2003 and the COVID-19 pandemic exposed the vulnerabilities of international mobility, while rising instances of airline bankruptcies, terrorism-related disruptions, and climate-related disasters such as hurricanes and wildfires have reinforced the importance of coverage. Currently, the Canadian travel insurance market is valued as one of the more mature in North America, supported by high outbound travel rates and mandatory insurance requirements for destinations like Europe. Structural growth drivers include increasing international travel by both leisure and business segments, rising healthcare costs globally which make medical coverage abroad essential, and a heightened perception of risk among Canadians who witnessed first-hand the complexities of emergency evacuations during the pandemic. Digitalization is also transforming the market, with insurers offering seamless online policy purchases, claims processing, and AI-driven personalization. However, challenges remain, such as relatively low penetration among younger demographics, ongoing risks of fraud in claims, and persistent awareness gaps, particularly among occasional travelers who may underestimate the financial risks of traveling uninsured. This combination of mature infrastructure, evolving risks, and digital transformation defines Canada’s current travel insurance landscape.

According to the research report “Canada Travel Insurance Market Overview, 2030,”published by Bonafide Research, the Canada Travel Insurance market was valued at more than USD 820 Million in 2025.In Canada, the competitive and strategic landscape of the travel insurance market is defined by a dual presence of global incumbents and emerging digital players, each responding to the country’s distinct travel behavior and regulatory framework. Established insurers such as Allianz, AXA, Chubb, and Manulife leverage extensive broker and bank networks to distribute policies, focusing on bundled packages that integrate medical coverage, trip interruption, and emergency evacuation, which align with Canada’s high outbound travel rates and healthcare cost sensitivities abroad. Their strategies increasingly emphasize partnerships with airlines like Air Canada, major travel agencies, and financial institutions, embedding coverage directly into the booking or credit card ecosystem. Meanwhile, insurtech firms such as Cover Genius and Revolut are penetrating the market by offering embedded solutions within booking platforms, micro-policies for single trips, and real-time parametric payouts, appealing to younger, digitally savvy Canadian travelers. Aggregators like Kanetix and regional online comparison engines are also reshaping pricing dynamics by heightening transparency and encouraging commoditization, pressuring incumbents to differentiate through service quality, claim speed, and telemedicine integration. Strategic alliances are growing more common, with reinsurers collaborating with local insurtechs to test parametric innovations for flight delays or extreme weather, a relevant factor given Canada’s exposure to snowstorms and airline disruptions. Loyalty-based tie-ins, particularly with banks and frequent flyer programs, are being refined to build customer retention in a market where repeat travelers are highly valuable. The Canadian market’s competitive structure is transitioning from product-centric to service and experience-driven, with digital delivery and ecosystem partnerships becoming critical differentiators.

In Canada, the travel insurance market is distinctly shaped by product division, with single-trip, annual or multi-trip, and long-stay insurance catering to different traveler profiles and risk appetites. Single-trip travel insurance dominates among casual travelers and families, especially for leisure journeys to the United States, Caribbean, and Europe, offering flexibility for short, one-off vacations and cruises. The structure of these policies, which often include emergency medical coverage, trip cancellation, and baggage loss, resonates with Canadians who seek targeted protection without long-term commitments. Annual or multi-trip policies, by contrast, are increasingly popular among business professionals, retirees who winter abroad, and frequent flyers, as they provide cost-efficiency and convenience compared to purchasing multiple single-trip plans. This category benefits from corporate travel policies and affinity programs tied to premium credit cards, where coverage is embedded seamlessly into financial services, creating loyalty and ease of adoption. Long-stay travel insurance, while smaller in volume, is critical for segments such as international students, expatriates, digital nomads, and retirees spending extended periods overseas, often requiring higher medical coverage limits and flexible renewal structures. This segment is also influenced by Canada’s bilateral healthcare agreements and the demand for specialized coverage in destinations with expensive healthcare, such as the U.S. and Asia-Pacific hubs. Collectively, these insurance types reveal a market balancing affordability with comprehensive protection, where evolving lifestyle patterns, such as remote work and extended stays abroad, are pushing insurers to tailor products that go beyond conventional short-term models and increasingly emphasize customizable, digital-first solutions.

In Canada, the travel insurance market by coverage type reflects both regulatory expectations and consumer demand for comprehensive financial protection while abroad, with medical insurance consistently ranking as the cornerstone product. Medical coverage is indispensable due to the high costs of treatment outside provincial health plans, particularly in the United States, where even minor emergencies can result in significant expenses. Insurers typically emphasize emergency hospitalization, repatriation, and prescription coverage, making it the most purchased coverage type. Trip cancellation and interruption insurance represents another strong pillar, driven by rising unpredictability in global travel such as weather disruptions, airline strikes, and geopolitical instability. Canadian travelers are increasingly opting for this coverage as it safeguards prepaid expenses like flights, cruises, and accommodations, which have become more vulnerable with dynamic pricing models. Baggage and personal belongings loss insurance, though secondary in adoption, remains relevant for leisure travelers and families, particularly given airline mishandling issues and heightened concerns around theft in tourist-heavy destinations. Accidental Death and Dismemberment (AD&D) coverage appeals to risk-sensitive travelers, including adventure tourists and business executives, who seek financial security for dependents in case of severe incidents. This niche but vital coverage is often bundled into premium packages or corporate policies. The Others category, including concierge services, travel delay reimbursement, and rental car insurance, is gaining traction as insurers differentiate their offerings through value-added benefits.

In Canada, the travel insurance market by distribution channel reflects a dual structure where online platforms and offline channels coexist but serve distinct consumer segments, with online platforms expanding rapidly as digital adoption accelerates. Online distribution has become the dominant growth driver due to its convenience, price transparency, and ability to compare policies across providers in real time. Canadian travelers, particularly younger demographics and frequent flyers, increasingly purchase insurance through insurer websites, aggregator portals, or directly via airline and travel agency booking systems. The integration of travel insurance add-ons into airline ticketing and credit card platforms has also fueled growth in online penetration, with many consumers opting for instant coverage at checkout. Mobile-based platforms further enhance reach by offering simplified policy management, claim submissions, and 24/7 assistance services, aligning well with tech-savvy Canadians who value speed and accessibility. Conversely, offline channels such as traditional insurance brokers, travel agencies, and bank branches continue to maintain a loyal customer base, particularly among elderly travelers and those seeking personalized advice for complex itineraries like cruises or multi-destination travel. Offline distribution also plays a key role in building trust and credibility, especially for first-time buyers who prefer in-person consultations. Banks in Canada, including major players like RBC and TD, leverage their strong branch networks to cross-sell travel insurance, further sustaining offline relevance. However, the balance is tilting steadily in favor of online platforms as insurers invest in digital ecosystems, AI-driven chatbots, and seamless claims processes, making digital-first engagement the new norm in Canada’s travel insurance market.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Travel Insurance Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Insurance Types
• Single-trip Travel Insurance
• Annual or Multi-trip Travel Insurance
• Long-stay Travel Insurance

By Insurance Coverage
• Medical Insurance
• Trip Cancellation/Interruption:
• Baggage & Personal Belongings Loss
• Accidental Death & Dismemberment (AD&D)
• Others

By Distribution Channel
• Online Platforms
• Offline Channels Show more