Global Travel Insurance Market Overview, 2025-30

The global travel insurance market is experiencing steady growth as international and domestic travel continues to rebound, fueled by rising disposable incomes, greater awareness of health and cancellation risks, and the expansion of middle-class travelers in emerging economies. Demand is evolving as leisure travelers increasingly prefer comprehensive protection covering cancellations, delays, and medical emergencies, while corporate buyers are prioritizing integrated risk-management solutions, including evacuation support and political-risk coverage. Parametric insurance offering automatic payouts for predefined events such as flight delays or extreme weather is reducing claims friction, artificial intelligence is enabling dynamic underwriting, fraud detection, and hyper-personalized pricing, and telemedicine integration is enhancing emergency medical services. Allianz provides a broad array of coverage options tailored to meet the needs of diverse travelers, including those seeking comprehensive protection for leisure, business, and adventure trips. Allianz has also embraced digital innovation, providing a seamless online platform and mobile app to simplify policy management, claim filing, and service access, which makes it a popular choice for tech-savvy travelers looking for convenience alongside comprehensive protection. At the same time, embedded insurance and API-driven partnerships are disrupting traditional distribution, commoditizing policies but improving conversion rates. While these advances create opportunities, they also pose operational challenges around data privacy, algorithmic transparency, and regulatory compliance. Policy and regulatory environments add another layer of complexity, as the sector is governed by fragmented national rules rather than global standards.

According to the research report, ""Global Travel Insurance Market Overview, 2030,"" published by Bonafide Research, the Global Travel Insurance market was valued at more than USD 23.98 Billion in 2024, with the CAGR of 13.14% from 2025-2030. Urbanization is another contributing factor, as city dwellers travel more frequently for work and leisure, leveraging digital tools to book and secure coverage instantly. The growing frequency of climate-related disruptions, such as hurricanes, floods, and heatwaves, has also made parametric and event-based insurance products more appealing, adding new layers of growth potential to the sector. On the innovation front, insurtech is playing a transformative role, with AI-based claim settlement systems, blockchain-enabled transparency, and embedded insurance bundled into booking platforms enhancing convenience and customer trust. These advancements are creating opportunities for partnerships between traditional insurers and travel service providers, where real-time data and automation deliver value to both sides. Events such as Insurtech Connect and World Travel Market (WTM) often feature dedicated tracks on travel insurance trends, embedded distribution, and risk management, offering valuable insights to industry players. These forums not only showcase product advancements but also highlight evolving customer behaviors, helping insurers adapt to changing expectations. An interesting fact is that a growing number of airlines and online travel agencies are reporting increased conversions when travel insurance is offered as an integrated booking add-on, showing how embedded models are reshaping the market’s distribution structure. In March 2024, Zurich Insurance partnered with travel and leisure e-commerce platform Klook to introduce FlyEasy coverage, which, powered by Zurich Edge platform with micro-services from Blink Parametric, aims to reduce stress among individuals from long flight delays at airports.

Market Drivers

• Rising International Tourism and Business Travel: One of the strongest drivers of the global travel insurance market is the rapid growth of international tourism and business travel. As globalization accelerates, more people are traveling abroad for work, leisure, education, and medical tourism. This surge in travel increases the likelihood of unforeseen events such as medical emergencies, trip cancellations, or lost baggage. Governments in several countries have also made travel insurance mandatory for obtaining visas, further boosting adoption. With the rising disposable income of middle-class populations in emerging economies and the post-pandemic rebound in travel, the demand for reliable coverage is expected to remain strong, supporting market growth.
• Growing Awareness of Financial Protection and Safety: Another key driver is the increasing awareness among travelers about the importance of financial protection during trips. Incidents such as medical emergencies in foreign countries, natural disasters, or airline disruptions can lead to significant financial loss. Travel insurance provides a safety net that helps cover these unexpected expenses, making it an attractive option for both occasional and frequent travelers. Digital platforms, aggregator websites, and mobile apps have also simplified the process of purchasing policies, further improving consumer confidence and expanding the market’s reach across different age groups and geographies.

Market Challenges

• Low Penetration and Consumer Misconceptions: Despite the growing importance of travel insurance, its penetration remains relatively low in many developing regions due to lack of awareness and misconceptions about coverage. Many travelers perceive it as an unnecessary expense or believe their existing health or credit card insurance is sufficient, leading to underutilization. Additionally, some consumers find policy wording complex and difficult to understand, causing hesitancy in purchase decisions. Overcoming this knowledge gap and communicating the tangible benefits of coverage is a persistent challenge for insurers worldwide.
• Rising Fraudulent Claims and Cost of Premiums: The industry also faces challenges in dealing with fraudulent claims, which inflate costs and put financial pressure on insurance providers. Fraudulent activities, such as exaggerated medical expenses abroad or false claims of lost luggage, reduce profitability and increase premiums for genuine customers. Moreover, the overall cost of travel insurance policies can deter price-sensitive consumers, especially in developing economies. Striking a balance between affordable premiums and comprehensive coverage, while investing in fraud detection technologies, remains a key hurdle for the sector.

Market Trends

• Digitalization and AI-Driven Insurance Solutions: One of the most significant trends shaping the market is the adoption of digital technologies, artificial intelligence (AI), and machine learning for underwriting, claims management, and customer service. Insurers are offering personalized policies based on travel habits and risk profiles using data analytics, while chatbots and mobile applications simplify policy purchases and claim settlements. Blockchain technology is also being explored to improve transparency in transactions and reduce fraud. This digital transformation is enhancing customer convenience, increasing efficiency, and making travel insurance more accessible to a global audience.
• Shift Toward Specialized and Niche Insurance Plans: Another trend is the growing demand for specialized travel insurance products tailored to different traveler categories. Policies are now being designed for adventure travelers, senior citizens, students studying abroad, and even digital nomads who work remotely from multiple countries. This diversification allows insurers to cater to unique needs such as coverage for high-risk sports, long-term stays, or pre-existing health conditions. The trend reflects a shift from generic plans to more customer-centric solutions, enabling insurers to capture niche markets and enhance loyalty among travelers with specific requirements.

Annual or multi-trip travel insurance is growing globally due to increasing frequent travel by individuals and families who seek cost-effective, continuous coverage instead of purchasing separate policies for each trip.

The growth of annual or multi-trip travel insurance in the global travel insurance industry is closely linked to the evolving travel patterns of consumers, particularly in regions with high outbound tourism and rising disposable incomes. Frequent travelers, including business professionals, expatriates, and avid leisure travelers, increasingly prefer a single comprehensive policy that covers all trips throughout the year, rather than purchasing separate single-trip insurance policies for each journey. This approach not only simplifies the insurance process but also provides significant cost savings, as the premium for an annual multi-trip plan is often lower than the cumulative cost of multiple single-trip policies. The convenience factor plays a major role, as travelers are assured continuous coverage without the need to repeatedly compare policies, fill out forms, or manage multiple documents for each journey. Additionally, the post-pandemic travel boom and normalization of international business and leisure travel have fueled demand for multi-trip policies, as travelers seek to mitigate risks associated with trip cancellations, medical emergencies, lost baggage, and travel delays. Technological advancements and the digitalization of insurance platforms have further accelerated adoption, allowing customers to purchase, manage, and claim annual or multi-trip policies online with ease, often with automated renewals and personalized options based on travel frequency and destination. Insurers are responding to this trend by designing flexible plans that cater to varying travel needs, including domestic and international coverage, coverage for adventure sports, and options for family or corporate travelers.

Trip Cancellation/Interruption coverage is growing globally due to travelers’ increasing need to protect prepaid travel investments from unforeseen disruptions caused by health issues, travel restrictions, or unexpected emergencies.

The rise in Trip Cancellation and Interruption coverage in the global travel insurance market is primarily driven by the heightened awareness among travelers about financial losses associated with unforeseen travel disruptions. In recent years, factors such as the COVID-19 pandemic, natural disasters, political instability, and sudden personal emergencies have emphasized the vulnerability of prepaid travel arrangements, including flights, accommodations, tours, and event bookings. Travelers increasingly recognize that even a minor disruption such as a sudden illness, a family emergency, or changes in airline schedules can result in significant financial loss if trips are canceled or cut short. This has created a strong demand for insurance policies that can reimburse non-refundable expenses and provide peace of mind, making Trip Cancellation/Interruption coverage a critical component of comprehensive travel planning. The growth of this coverage is further supported by rising global outbound travel, driven by increasing disposable incomes, globalization, and the growing popularity of international leisure and business trips. As travelers become more invested in experiences, including luxury travel, adventure tourism, and group tours, the financial stakes of trip disruptions rise, incentivizing them to secure protection against potential losses. Digitalization has also played a key role, as online travel booking platforms, insurance aggregators, and mobile applications allow travelers to conveniently add Trip Cancellation/Interruption coverage to their travel plans, often as a simple add-on during the booking process. Insurance providers have responded by offering tailored policies that cover a wide range of interruption scenarios, from medical emergencies and sudden illnesses to airline bankruptcies, natural disasters, or travel advisory changes.

Offline channels are moderately growing in the global travel insurance industry because certain customer segments still prefer personalized, in-person guidance and traditional purchasing methods despite the rise of digital platforms.

The moderate growth of offline channels in the global travel insurance market is primarily attributed to the continued relevance of traditional distribution methods for specific consumer segments and complex insurance needs. While digital platforms dominate due to convenience, speed, and comparison tools, many travelers, particularly older adults, first-time international travelers, and those seeking customized or high-value coverage, still prefer face-to-face interactions with insurance agents or brokers. Offline channels, including travel agencies, bank branches, and insurance offices, provide personalized advisory services, helping customers understand policy terms, exclusions, and claim processes something that some users find difficult to assess online. This human touch is especially valued when travelers purchase comprehensive policies with add-ons like trip cancellation, medical evacuation, or adventure sports coverage, where detailed explanations reduce confusion and build trust. Moreover, in regions with lower digital penetration or limited internet accessibility, offline channels remain essential for reaching untapped markets, including rural areas and small towns, contributing to steady growth despite global digital trends. The relationship-building aspect of offline sales also supports upselling and cross-selling opportunities, such as bundling travel insurance with life, health, or accident insurance, which can be more effectively communicated in person. Corporate travel programs and group travel bookings often rely on offline channels to negotiate customized coverage plans for employees or clients, reinforcing their continued relevance. Offline channels also play a role in educating customers about regulatory requirements and compliance in travel insurance, providing clarity and reassurance that automated online platforms may not fully offer.

The Education Travelers segment is growing in the global travel insurance industry due to the increasing number of students and academic professionals traveling abroad for studies, research, and exchange programs, who require comprehensive coverage for health, accidents, and trip disruptions.

The growth of the Education Travelers end-user segment in the global travel insurance market is primarily driven by the significant rise in international student mobility and academic travel across the world. With globalization and the expansion of higher education opportunities, more students are enrolling in overseas universities, colleges, and vocational programs, while academic professionals participate in research, conferences, and exchange programs abroad. This trend has created a heightened demand for travel insurance that covers health emergencies, accidental injuries, medical evacuation, trip interruptions, and liability protection during their time abroad. Parents and guardians, who are often financially responsible for students studying overseas, increasingly prioritize comprehensive coverage to safeguard against unforeseen events such as illnesses, accidents, travel delays, or repatriation needs, further fueling the segment’s growth. Additionally, many countries and educational institutions now mandate travel or health insurance as a prerequisite for visa approval or enrollment, which has institutionalized insurance purchases among education travelers. Technological advancements and digital platforms have made it easier for students and institutions to compare, purchase, and manage policies online, offering convenience and flexibility in coverage. Insurers have also introduced tailored education traveler policies that address specific needs, such as coverage for pre-existing conditions, mental health support, coverage for sports and extracurricular activities, and short-term or multi-year policies aligned with academic programs. Moreover, the COVID-19 pandemic highlighted the vulnerability of international students to disruptions, travel restrictions, and unexpected health expenses, leading to greater awareness and adoption of comprehensive travel insurance solutions.

The 18–30 years old age group is growing in the global travel insurance industry due to their increasing frequency of travel for education, leisure, adventure, and early career opportunities, coupled with heightened awareness of travel-related risks.

The growth of the 18–30 years old age group in the global travel insurance market is primarily driven by the changing lifestyle and travel behavior of young adults, who are increasingly exploring international and domestic destinations for education, work, leisure, and adventure tourism. Millennials and Gen Z travelers are more likely to undertake solo trips, gap-year travel, study abroad programs, or short-term work assignments, leading to a higher number of trips per year and consequently a greater need for comprehensive insurance coverage. This demographic is also highly conscious of the financial and health risks associated with travel, such as medical emergencies, trip cancellations, lost baggage, and accidents during adventure or extreme sports activities, which are popular among younger travelers. The rise of digital technology, online booking platforms, and mobile apps has made it easier for this age group to compare, purchase, and manage travel insurance policies in real time, catering to their preference for convenience, instant access, and flexible solutions. Additionally, social media influence and peer recommendations have increased awareness of the benefits of travel insurance, as young travelers often share experiences about unexpected travel disruptions or medical emergencies, highlighting the value of insurance coverage. Travel insurance policies targeted at this age group frequently include add-ons for adventure sports, mental health support, and flexible cancellation options, aligning with the dynamic lifestyle and preferences of young adults. The post-pandemic recovery in international and domestic travel has further fueled demand, as young travelers are among the first to resume exploring new destinations, participate in study abroad programs, or engage in work and volunteering opportunities overseas.

Asia Pacific is driving growth in the global travel insurance industry due to rapid outbound travel, rising disposable incomes, digital adoption, and increasing awareness of travel risk protection.

The Asia Pacific region is experiencing rapid growth in the global travel insurance industry primarily because of the region’s dynamic travel patterns, expanding middle class, and increasing financial literacy among consumers. Countries such as China, India, Japan, South Korea, and Southeast Asian nations have witnessed a surge in outbound travel for leisure, business, education, and medical tourism, which has created an unprecedented demand for comprehensive travel insurance products. Rising disposable incomes and a growing urban population have made travel more accessible to a wider demographic, encouraging travelers to seek protection against unforeseen events such as medical emergencies, trip cancellations, lost baggage, and flight delays. Digitalization and the proliferation of mobile and online platforms have further accelerated adoption by making travel insurance policies easy to compare, purchase, and manage, catering to the tech-savvy younger generation that dominates the region’s traveler base. Governments and regulatory bodies across Asia Pacific have strengthened oversight and standardized travel insurance offerings, enhancing consumer confidence and market transparency. Additionally, cultural shifts toward risk awareness and financial planning have led more consumers to recognize travel insurance as a necessity rather than an optional expense, particularly in countries with high outbound travel volumes. The region is also seeing innovation in product offerings, with insurers introducing specialized coverage for adventure tourism, health emergencies, multi-trip policies, and long-term international travel to meet diverse consumer needs.

• 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 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.


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