Global Travel Insurance Market 2016-2020
About the Travel Insurance Market
Travel insurance covers the expense, such as trip cancellation, cancellation due to the medical emergency, resulting from unexpected events during domestic and international travel. Some of these policies also pay for damage to rented equipment, such as car, or for ransom in case of kidnapping. Many online companies that sell flight tickets or tour packages offer travel insurance at an additional cost to its customers.
Travel insurance is a hard-selling product. Regulatory authorities and governments of several countries worldwide have made travel insurance mandatory, which will likely increase the uptake of these products during the forecast period and expand business and increase profitability of travel insurance providers. Growing market and evolving demand have pushed the insurance companies to develop and customize products to suit client needs, making the market highly competitive for the local and international private travel insurance companies that offer competitive pricing for their products.
Technavio’s analysts forecast the global travel insurance market to grow at a CAGR of 11.6% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global travel insurance market for 2016-2020. To calculate the market size, the report considers the total gross premium generated from EMEA, APAC, and the Americas.The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Travel Insurance Market 2016-2020
Technavio recognizes the following companies as the key players in the global travel insurance market: CSA Travel Protection, Seven Corners, TravelSafe Insurance, and USI Affinity.
Other Prominent Vendors in the market are: ACE Asia Pacific, Allianz Global Assistance, American International Group Inc., and AXA.
Commenting on the report, an analyst from Technavio’s team said: “A trend which is helping to boost market growth is insurance for unconventional expenses. Vacation rentals are popular, especially in the US. Thus, when a tourist opts for vacation rentals, the person gets accommodation in furnished houses, apartments, or resort condominium complexes. Most vacation rentals have standardized cancellation policies (flexible, moderate, and strict), which protect both the guest and host alike and generate little or negligible reimbursements.”
According to the report, a key growth driver is the rise in tourism and business related travel. Globally, the travel and tourism industry contributed $7.8 trillion in revenue in 2015. The industry has outgrown other industries such as oil export, food products, or automobiles between 2012 and 2015, which may grow at an estimated 4% during the forecast period. It is predicted that the steady and gradual rise in tourism and business travels worldwide contributed 9.5% to the global GDP in 2015. We estimate that the tourism industry will generate an annual revenue of about $12 trillion in the next 10 years.
Further, the report states that one challenge that could hamper market growth is the variety in healthcare laws in different countries.
CSA Travel Protection, Seven Corners, TravelSafe Insurance, USI Affinity, ACE Asia Pacific, Allianz Global Assistance, American International Group Inc., AXA.