South Korea Travel Insurance Market Overview, 2030

South Korea’s travel insurance market has undergone a significant evolution, transitioning from early marine and accident coverage to modern, comprehensive bundled packages that address the full spectrum of travel risks. Initially, travel insurance in the country focused on maritime accidents and basic medical emergencies, primarily catering to commercial and leisure travelers. Over the years, the industry expanded to include coverage for trip cancellations, flight delays, baggage loss, medical evacuations, and personal liability, reflecting the increasingly complex needs of domestic and outbound travelers. The market has been shaped by a series of major disruptions, including global pandemics, natural disasters, and geopolitical tensions, which highlighted the importance of comprehensive travel coverage and prompted insurers to innovate and enhance policy offerings. Structural growth drivers are strong, with rising outbound travel, growing healthcare costs abroad, increased digitalization of insurance services, and heightened traveler awareness contributing to adoption. Technology has facilitated easier access to policies, online claims, and customer support, enabling more personalized and on-demand coverage. Despite the positive trends, challenges persist: penetration remains relatively low in certain segments, particularly among younger or first-time international travelers; fraud and claim disputes continue to pose operational risks; and gaps in consumer awareness hinder the adoption of more sophisticated policies. Insurers are addressing these issues through awareness campaigns, integration with digital travel platforms, and the development of flexible, modular products. Collectively, these dynamics indicate that while South Korea’s travel insurance market is mature in certain urban and outbound travel segments, there is substantial opportunity for growth and innovation in coverage offerings, distribution, and customer engagement.

According to the research report, ""South Korea Travel Insurance Market Overview, 2030,”published by Bonafide Research, the South Korea Travel Insurance market is anticipated to add to more than USD 600 Million by 2025–30.South Korea’s travel insurance market is characterized by a mix of established domestic insurers, emerging insurtech firms, and digital aggregators, forming a dynamic competitive environment. Local insurers such as Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, and KB Insurance dominate the traditional segment, offering comprehensive travel insurance solutions for domestic and outbound travelers. These incumbents leverage extensive branch networks, strong customer trust, and partnerships with airlines, travel agencies, and banks to distribute policies, including single-trip, annual multi-trip, and long-stay coverage. In parallel, insurtech companies are transforming the market through innovative, technology-driven products. Firms like Toss Insurance and PeopleFund are introducing micro-policies, embedded insurance linked with digital travel platforms, and AI-powered claims processing, targeting tech-savvy and younger travelers. Parametric insurance models are also emerging, enabling faster payouts for events such as flight delays or lost baggage. Aggregators and comparison platforms, including InsureMore and PolicyPal Korea, facilitate policy comparison, price transparency, and convenient online purchase, helping travelers make informed decisions while driving market competitiveness. These platforms are increasingly integrating customer reviews, personalized recommendations, and instant quote generation to enhance user experience. Collectively, the local competitive landscape emphasizes digitalization, customer-centricity, and product innovation, with domestic insurers maintaining strong traditional channels, while insurtechs and aggregators accelerate adoption among digitally engaged travelers. This ecosystem fosters continuous evolution in policy offerings, enhances accessibility, and strengthens overall market penetration in South Korea, particularly among outbound travelers and young professionals.

South Korea’s travel insurance market is structured around three primary types: single-trip, annual or multi-trip, and long-stay insurance, each addressing the varying needs of travelers. Single-trip travel insurance is the most common, catering to domestic and international travelers embarking on short-term journeys, whether for tourism, business, or educational purposes. These policies typically cover medical emergencies, trip cancellations, flight delays, and baggage loss for the duration of a single itinerary, offering convenience and financial protection for one-off trips. Annual or multi-trip travel insurance targets frequent travelers, including business professionals and individuals with multiple international trips in a calendar year. This type consolidates coverage across several journeys under a single policy, often allowing each trip to extend up to 90 or 180 days, providing cost efficiency, continuous protection, and simplified administration compared to purchasing separate single-trip policies. Long-stay travel insurance is designed for individuals planning extended stays abroad, such as students, expatriates, or retirees, and can cover periods ranging from several months to multiple years. These policies are comprehensive, including medical treatment, emergency evacuation, trip interruption, and specialized coverage for high-risk activities. Across all types, South Korean insurers increasingly offer digital platforms for purchasing, managing, and claiming insurance, while enabling add-ons and customizable options based on traveler profiles. The growth of each type is driven by rising outbound travel, heightened risk awareness, and increased access to digital insurance services, with providers adapting products to suit the distinct preferences and durations of South Korean travelers, thereby expanding adoption and enhancing market maturity.

In South Korea, travel insurance coverage is designed to address the diverse risks faced by both domestic and outbound travelers, with medical insurance forming the core of most policies. Medical coverage typically includes emergency treatment, hospitalization, outpatient care, and medical evacuation, reflecting growing awareness of high healthcare costs abroad. Many policies also integrate telemedicine support and multilingual assistance, allowing travelers to access treatment quickly and efficiently. Trip cancellation and interruption coverage has become increasingly significant, particularly in light of pandemic-related disruptions, natural disasters, and sudden travel restrictions, reimbursing travelers for prepaid expenses such as flights, accommodations, and tours if unforeseen events force trip changes. Baggage and personal belongings coverage protects against loss, theft, or delay of luggage, and is often bundled with other coverage types due to its relevance for both business and leisure travelers. Accidental death and dismemberment (AD&D) coverage provides financial protection in case of severe injury or death during travel, commonly tailored for adventure tourists, students, and families. Additional optional coverage may include liability protection, travel delays, personal liability abroad, and specialized protections for cruises, winter sports, or trekking. Insurers increasingly offer flexible, modular packages, enabling travelers to select coverage aligned with trip type, duration, destination, and personal risk tolerance. The combination of traditional and technology-driven distribution, including online platforms and comparison sites, ensures that South Korean travelers have easy access to these comprehensive coverage options, supporting informed decision-making, enhancing safety, and promoting confidence in travel.

The distribution of travel insurance in South Korea is primarily split between online platforms and offline channels, reflecting both modern digital adoption and traditional customer engagement methods. Online platforms have seen rapid growth, driven by convenience, speed, and accessibility. Insurers such as Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, and KB Insurance provide digital portals that allow travelers to compare, purchase, and manage policies entirely online. Features such as instant policy issuance, digital claim submission, and 24/7 customer support enhance convenience for tech-savvy travelers, particularly younger professionals and students. In addition, digital aggregators and comparison platforms like InsureMore and PolicyPal Korea have become significant, offering side-by-side comparisons of coverage options, premiums, and terms, enabling informed decision-making while promoting transparency and competition among insurers. These platforms also integrate tools like instant quotations, customer reviews, and personalized recommendations, which further improve user experience. On the other hand, offline channels remain relevant for travelers who prefer personal consultation, including older individuals, high-net-worth clients, and those purchasing complex or long-stay policies. Traditional channels include insurance company branches, travel agencies, and banks that often bundle travel insurance with credit cards, corporate travel programs, or student packages. Offline channels provide personalized guidance, claims assistance, and support for customized policies that may require detailed documentation. The coexistence of online and offline channels allows the South Korean travel insurance market to reach a broad audience, offering digital convenience while maintaining the reliability and trust associated with face-to-face engagement, ultimately enhancing market penetration and consumer confidence.

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