Global Travel Insurance Market Outlook, 2030

The global travel insurance market is witnessing strong growth as international mobility rises, business travel rebounds, and consumer awareness of travel-related risks deepens. The impact of urbanization is equally significant, as densely populated cities generate higher volumes of both leisure and business trips while fostering smartphone-based purchasing behaviors that favor digital distribution and micro-duration policies; at the same time, urban environmental risks such as flooding and extreme weather further increase the perceived need for insurance protection. The growing role of parametric products that automate payouts for delays or weather disruptions, the rise of embedded insurance integrated into booking platforms and the adoption of AI-driven underwriting and claims processing, all of which enhance efficiency and customer satisfaction while reducing costs. However, these innovations also face regulatory complexities, as cross-border distribution, local licensing, data privacy laws such as GDPR, and oversight of AI-driven decision-making create compliance challenges for insurers offering regional or global solutions. Innovations also face regulatory complexities, as cross-border distribution, local licensing, data privacy laws such as GDPR, and oversight of AI-driven decision-making create compliance challenges for insurers offering regional or global solutions. Key facts underscore the momentum, with more travelers purchasing coverage due to heightened concerns over climate events, geopolitical tensions, and health risks, while intermediaries report significant increases in quote requests and conversions. In May 2024, Insuretech Company Qover collaborated with Bunq, which is the second-largest Neobank in Europe and launched travel insurance across seven markets. Together, the company provides an exceptional user experience for ‘Eva,’ a bunk’s model user. This helps to expand insurance products with excellent AI-based customer care and an efficient stream process. Policy frameworks and certification requirements are evolving to balance innovation with consumer protection, demanding insurers adapt product design, distribution, and claims processes to remain competitive.

According to the research report “Global Travel Insurance Market Outlook, 2030” published by Bonafide Research, the Global Travel Insurance market is projected to reach market size of USD 49.56 Billion by 2030 increasing from USD 28.98 Billion in 2024, growing with 13.14% CAGR by 2025-30. Travelers are increasingly aware of financial risks tied to flight cancellations, lost baggage, and unexpected medical expenses, which is pushing demand for flexible and comprehensive insurance packages. In fact, surveys show a year-on-year rise in policy purchases across both leisure and corporate segments, with millennials and Gen Z travelers showing particular interest in short-term, on-demand policies available through digital channels. Several insurance companies across the globe are striking partnerships with other insurance companies to launch travel insurance policies and provide comprehensive coverage at competitive rates. For instance, in October 2023, Trawick International, an insurance company, announced its partnership with STARR INTERNATIONAL COMPANY, INC., an insurer, to launch three new travel insurance policies underwritten by STARR’s U.S. subsidiary, Starr Indemnity & Liability Company. The newly launched trip cancellation policies, backed by the ""A"" (excellent) rating from A.M. Best, are called Safe Travels Defend, Safe Travels Armor, and Safe Travels Protect. The inclusion of pandemic-related coverage and partnerships with airlines and travel agencies are further fueling adoption. For instance, as of December 2024, the Centers for Disease Control and Prevention (CDC) published Travel Health Notices (THNs) to alert travelers about potential health risks abroad, including disease outbreaks and natural disasters. These notices advise travelers on precautions necessary to avoid illness while traveling. To support this growth and foster collaboration, a range of global and regional events, conferences, and seminars provide platforms for knowledge sharing and networking. For instance, industry gatherings like the International Travel & Health Insurance Conferences (ITIC) bring together insurers, assistance companies, and regulators to discuss innovations, customer expectations, and compliance issues.

Market Drivers

• Rising International Tourism and Business Travel: The global surge in international tourism and corporate travel is a major driver of the travel insurance market. With more people exploring new destinations for leisure, education, or work, the risks associated with medical emergencies, trip cancellations, and lost baggage have increased. Business travelers, especially from emerging economies, are also opting for comprehensive travel insurance coverage to ensure protection against unexpected disruptions. This growing awareness of financial safety during travel is fueling higher adoption rates of travel insurance worldwide.
• Increasing Medical Costs Abroad: The cost of healthcare in foreign countries has escalated, creating a strong need for travel insurance policies that cover overseas medical expenses. Travelers are now more conscious of the high out-of-pocket costs they might incur if they fall sick or meet with an accident abroad. For example, hospitalization in the US or Europe can cost several thousand dollars per day, making insurance indispensable. This financial security aspect is one of the strongest motivators driving the purchase of travel insurance globally.

Market Challenges

• Low Awareness in Emerging Markets: A key challenge for the travel insurance industry is the low level of awareness in developing and underpenetrated markets. Many travelers, especially in Asia, Africa, and Latin America, still consider travel insurance an unnecessary expense rather than a necessity. Cultural perceptions and lack of education about the benefits of insurance limit market expansion in these regions. Insurers face the challenge of building trust and creating effective outreach to educate travelers about the value of travel protection.
• Complex Claim Settlement and Fraud Risks: Another major challenge lies in claim settlement procedures and fraud risks. Many travelers report dissatisfaction with lengthy or unclear claim processes, which reduces customer confidence in insurance providers. Additionally, fraudulent claims such as false reports of lost baggage or exaggerated medical expenses pose financial risks for insurers and increase premium costs. Balancing efficient claim processing with fraud prevention remains a significant hurdle for the industry.

Market Trends

• Digitalization and Insurtech Integration: The adoption of digital platforms, AI-powered chatbots, and mobile apps is transforming how travel insurance is sold and managed. Insurtech companies are streamlining policy issuance, claim filing, and real-time assistance, making the process more user-friendly. Personalized policies based on AI-driven risk assessments and online distribution channels are enabling insurers to reach a broader customer base, particularly millennials and tech-savvy travelers who prefer instant, digital-first solutions.
• Growth of Customized and On-Demand Policies: Travelers increasingly prefer flexible, tailored insurance products rather than one-size-fits-all policies. On-demand travel insurance, which allows travelers to activate coverage only when needed, is gaining traction. Coverage for niche requirements such as adventure sports, cruise travel, or pandemic-related disruptions is also rising. This trend reflects a shift toward more customer-centric products, catering to diverse traveler needs while offering greater transparency and control.

Single-trip travel insurance is leading in the global travel insurance industry because it offers cost-effective, flexible, and convenient coverage tailored to the growing segment of occasional and leisure travelers.

The dominance of single-trip travel insurance in the global travel insurance industry can be attributed to its cost-effectiveness, flexibility, and growing alignment with the evolving travel behavior of consumers worldwide. Unlike annual or multi-trip policies that cater primarily to frequent business travelers or individuals who embark on multiple international journeys per year, single-trip policies are designed to provide protection for one specific trip, making them more affordable and accessible to the majority of travelers who travel only once or twice annually for vacations, family visits, or short-term work assignments. With international tourism recovering strongly post-pandemic and leisure travel witnessing a surge due to increasing disposable incomes, easier visa regulations, and the growing middle-class population in emerging economies, the demand for budget-friendly insurance options has expanded considerably. Single-trip insurance fits seamlessly into this trend, as it allows travelers to pay only for the duration and destination they need coverage for, without committing to an expensive long-term plan that may remain underutilized. Moreover, the nature of modern travel has shifted toward short-term leisure and purpose-driven trips, such as weekend getaways, seasonal holidays, adventure travel, and destination weddings, further boosting the relevance of single-trip coverage. From a behavioral standpoint, occasional travelers are less inclined to think about travel insurance as a recurring cost and instead view it as a one-time purchase directly tied to a specific journey, making single-trip policies more psychologically appealing.

Medical insurance coverage is leading in the global travel insurance industry because travelers increasingly prioritize protection against high and unpredictable healthcare costs abroad, making medical coverage the most essential and sought-after component of travel insurance policies.

Medical insurance coverage dominates the global travel insurance industry largely because it addresses the single greatest risk and financial uncertainty that travelers face when journeying abroad, the potential for sudden illness, injury, or medical emergency in a foreign country. While other coverage types such as trip cancellation, baggage loss, or flight delays are important, they are often secondary in comparison to the need for immediate and reliable access to healthcare in unfamiliar territories where medical costs can be prohibitively high. The rising cost of healthcare globally, particularly in popular travel destinations like the United States, Europe, and parts of Asia, has heightened the demand for comprehensive medical coverage, as even a minor emergency can result in significant expenses. For instance, a hospital stay or surgery overseas without insurance can run into tens of thousands of dollars, far exceeding the cost of the trip itself, making medical insurance not just optional but a necessity. Additionally, many countries have introduced strict regulations requiring proof of travel medical insurance as part of visa applications, especially for long-stay visas, student exchanges, or working holidays, further cementing its role as the leading coverage type. For example, the Schengen Area mandates travelers from outside the EU to have a minimum level of medical coverage before entry, while several Asian and Middle Eastern nations have introduced similar prerequisites. Beyond regulatory requirements, the growth of medical tourism has also fueled demand, as people traveling abroad for treatments, surgeries, or wellness services often seek enhanced medical protection to cover unforeseen complications.

Online platforms are leading in the global travel insurance industry because they provide instant accessibility, personalized policy options, and seamless integration with travel bookings, aligning with the growing digital-first behavior of modern travelers.

The dominance of online platforms in the global travel insurance industry stems from the increasing digitalization of consumer behavior, the convenience of instant access, and the ability to offer personalized, transparent, and easily comparable insurance options at the point of purchase. In today’s travel ecosystem, most journeys begin online whether through airline websites, online travel agencies (OTAs), or mobile apps which naturally positions digital platforms as the primary channel through which travelers explore, evaluate, and purchase travel insurance policies. Online platforms offer significant advantages over traditional offline channels such as physical agents or in-branch purchases, as they allow consumers to instantly compare multiple insurers, coverage types, and price points, empowering them to make informed decisions with minimal effort. The shift toward digital-first solutions accelerated during the COVID-19 pandemic, when face-to-face interactions were limited, and since then, travelers have become accustomed to managing their insurance needs via smartphones and laptops. These platforms not only provide convenience but also deliver customization through AI and data-driven tools, which analyze trip details, traveler profiles, and preferences to suggest tailored coverage options, ensuring that travelers do not overpay or remain underinsured. Another critical factor driving the growth of online platforms is their seamless integration with booking journeys; for example, airlines, hotels, and OTAs often embed travel insurance options at checkout, making it easy for travelers to add coverage with a single click. This bundling has significantly increased adoption rates, as consumers perceive it as a natural extension of their trip planning rather than a separate, burdensome process.

Individual and family travelers are leading end users in the global travel insurance industry because leisure and personal travel represent the largest share of international journeys, with travelers prioritizing affordable, comprehensive protection for medical emergencies, trip cancellations, and unforeseen risks.

Individual and family travelers dominate the global travel insurance industry as the leading end-user group because the majority of international and domestic journeys worldwide are undertaken for leisure, vacations, family visits, and personal purposes rather than business or corporate travel. This segment encompasses a wide demographic solo adventurers, couples, nuclear families, multi-generational travelers, and first-time tourists who view travel insurance as a necessary safeguard against rising travel uncertainties, from medical emergencies abroad to trip cancellations, lost luggage, or flight disruptions. The post-pandemic revival of tourism has amplified this trend, with leisure travel rebounding faster than business travel due to hybrid work models, virtual meetings, and corporate cost-cutting reducing the frequency of work-related trips, thereby tilting the demand heavily toward individuals and families. For this segment, affordability and comprehensive coverage are key priorities, making travel insurance an attractive, often mandatory, add-on during booking processes. Families, in particular, tend to purchase bundled policies that cover multiple members under a single plan, ensuring convenience and cost savings, while also addressing heightened concerns for children, elderly parents, or dependents who may require additional medical care while traveling. The rising global middle class, especially in emerging economies such as Asia-Pacific and Latin America, has further boosted this demand as more families embark on international vacations, often to destinations with expensive healthcare systems, prompting them to secure financial protection before traveling. Additionally, governments and visa regulations indirectly reinforce this dominance; many countries require proof of travel insurance, particularly for tourists and family visitors applying for short-stay or Schengen visas, making it a standard component of leisure travel planning.

The 31–49 years age group is leading in the global travel insurance industry because they represent the most active demographic of international travelers, balancing financial stability with a heightened awareness of health, safety, and risk protection for both personal and family-oriented journeys.

Travelers aged 31–49 years dominate the global travel insurance industry because this demographic is at the peak of both financial capability and travel activity, making them the most consistent purchasers of insurance policies compared to younger or older age groups. Individuals in this age bracket typically have stable incomes, established careers, and greater purchasing power, enabling them to invest in international travel for a variety of purposes including leisure vacations, family holidays, business trips, or even wellness and adventure tourism. Unlike younger travelers, who often prioritize budget-friendly trips and may underestimate the importance of insurance, those aged 31–49 are more conscious of the potential risks and financial implications of unforeseen events such as medical emergencies, trip cancellations, or lost belongings. Many in this age group travel with spouses, children, or dependents, which increases their sense of responsibility and drives demand for comprehensive policies that provide family coverage and peace of mind. This age group is also characterized by high digital literacy, meaning they are comfortable researching, comparing, and purchasing travel insurance online, particularly through platforms integrated with airlines and booking websites, which further fuels adoption. Regulatory requirements, such as mandatory health insurance for visa applications, also impact this age group significantly, as they are often involved in overseas work assignments, student exchanges for children, or multi-generational family trips where compliance with insurance rules becomes essential. Another factor contributing to their leadership is health awareness; while relatively young and healthy, individuals in their 30s and 40s are more cautious about potential health risks than younger travelers and are more likely to opt for medical coverage, especially when traveling to destinations with expensive healthcare systems.

Europe leads the global travel insurance industry due to its high outbound travel volume, strict regulatory framework, mature insurance infrastructure, and a culture of risk-consciousness among travelers.

Europe holds a leading position in the global travel insurance industry because of its strong combination of high international travel frequency, advanced insurance systems, and a well-regulated market that prioritizes consumer protection and transparency. European countries such as Germany, the United Kingdom, France, Italy, and the Nordic nations have some of the world’s most frequent outbound travelers, with citizens regularly exploring destinations within the continent and across the globe, driving consistent demand for comprehensive travel insurance products. The European Union’s regulatory framework, particularly directives like the Insurance Distribution Directive (IDD) and strict consumer protection laws, ensures transparency, standardization, and fair practices, which not only safeguard traveler interests but also build long-term trust in insurance providers. Culturally, Europeans are highly risk-aware and view travel insurance as a necessity rather than a luxury, making it an integral part of travel planning. This is especially important given the region’s strong focus on health coverage, financial protection, and security during international travel. The insurance sector in Europe is also one of the most mature and technologically advanced, featuring innovative products tailored to specific traveler segments, such as adventure tourism, long-term expatriates, business travelers, and students studying abroad. Digitalization has further strengthened the market by enabling policy comparison, online purchases, and simplified claims processing through apps and web platforms, catering to the convenience-driven modern consumer.

• In April 2025, OneBefore, the MGA specialising in consumer insurance with a focus on accident, absence, health, and travel insurance, partners with Pulse Insurance, the specialist insurance provider, for the launch of their ‘Travel Well’ product.
• In March 2025, Chubb, the global insurance company, acquired Cigna's international health and travel insurance business, significantly increasing its presence in the travel insurance sector (Chubb Press Release).
• In January 2025, Berkshire Hathaway Travel Protection (BHTP), a leading travel insurance provider, published its 2025 State of Travel Insurance Report (SOTI), stating that the Intent to purchase travel insurance among Gen Z rose by 24% from 2023. Reports demonstrate Gen Z as an emerging key growth area for both travel suppliers and travel insurance providers in 2025 and beyond.
• In August 2024, a new travel insurance personalization option was launched by an insurance provider, Gigasure. They provide Boost and Add-on benefits to its policies. Boost benefits to the customers it may update their plans at a moment’s notice and tailor policies to suit their individual budgets and itineraries.
• In July 2024, a new annual multi-trip (AMT) product was launched by the global travel insurance provider World Nomads. The key benefit of the product is Air Doctor, which helps connect travelers to medical advice and private doctors in destinations where public health services cannot treat international travelers.
• In July 2024, an AI-powered health insurance plan, ‘Elevate,’ was launched by a leading private general insurer in India, ICICI Lombard. Elevate comes with power-packed 15 in-build coverage and many personalization options, including 20 critical illness coverage accommodations, maternity & newborn coverage, personal accidents, and personalized home care, air ambulance, inflation protector, preventive care, travel benefits, and many more.
• In June 2024, AXA Hong Kong and Macau (AXA) and HK Express Airways (HK Express) announced an exclusive insurance partnership agreement. AXA is offering HK Express customers a simple and convenient travel insurance experience and tailored protection for mass travelers. Show more