Travel Insurance Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Coverage Type (Single Trip Travel Insurance, Annual Multi-trip Travel Insurance, Long Stay Travel Insurance), By Provider (Banks, Insurance Companies, Insurance Intermediaries, Others (Insurance Aggregators, etc.)), By End User (Education Travelers, Business Travelers, Family Travelers, Others (Senior Citizens, etc.), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 32.14 Billion
CAGR (2026-2031)	15.56%
Fastest Growing Segment	Business Travelers
Largest Market	Europe
Market Size (2031)	USD 76.54 Billion

Market Overview

The Global Travel Insurance Market will grow from USD 32.14 Billion in 2025 to USD 76.54 Billion by 2031 at a 15.56% CAGR. Travel insurance is a financial product designed to reimburse policyholders for unexpected losses incurred during domestic or international trips, covering contingencies such as medical emergencies, trip cancellations, and lost luggage. The market is primarily supported by the resurgence of global tourism volumes and a heightened consumer awareness of health risks following the pandemic. Furthermore, the enforcement of mandatory insurance requirements for visa applications in various nations has solidified demand. According to the U.S. Travel Insurance Association, in 2025, consumer spending on travel protection in the United States reached $5.56 billion for the prior year, illustrating this strong upward trajectory.

However, a significant challenge potentially impeding market expansion is the escalating cost of claims driven by global medical inflation. Insurers face increased payouts for overseas treatment, necessitating higher premiums that may reduce affordability for travelers with limited budgets and restrict market penetration in sectors sensitive to price increases.

Key Market Drivers

The resurgence of international tourism and post-pandemic travel demand acts as the foremost catalyst for the Global Travel Insurance Market. As borders have fully reopened and consumer confidence stabilizes, there is a measurable spike in trip planning and protection-seeking behavior, particularly among younger demographics who are increasingly prioritizing financial safety. This structural shift is evident in the expanding consumer base for travel protection products. According to Berkshire Hathaway Travel Protection, in 2025, the intent to purchase travel insurance among Gen Z travelers rose by 24 percent compared to the previous year, signaling a long-term expansion in market penetration. This recovery is further evidenced by the sustained appetite for cross-border mobility across major economic regions. According to Allianz Partners, June 2025, in the 'European Vacation Confidence Index - Summer 2025', 75 percent of Europeans intended to travel between June and September, underscoring the strong momentum in tourism volumes which directly fuels the uptake of travel protection policies.

Escalating international healthcare costs and medical inflation significantly influence market dynamics by driving up claim severity and necessitating premium adjustments. As medical expenses rise globally, the financial risk for uninsured travelers becomes prohibitive, thereby reinforcing the value proposition of comprehensive medical coverage. Insurers are witnessing a direct correlation between these rising costs and their claim disbursements, which pressures pricing strategies and underscores the need for adequate coverage limits. According to Squaremouth, January 2025, in the 'Rising Travel Costs Led to a Big Shift in Travel Insurance Payouts in 2024' report, travel insurance payout amounts grew to an average of $2,609, representing a 37 percent spike driven largely by higher trip and medical costs. This inflationary trend compels the market to shift towards higher-limit policies and justifies the necessity of robust emergency protection for travelers facing expensive overseas treatments.

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Key Market Challenges

The escalating cost of claims driven by global medical inflation stands as a formidable barrier to the expansion of the Global Travel Insurance Market. As healthcare costs surge worldwide, insurers are compelled to absorb significantly higher payouts for overseas medical treatments and emergency repatriations. This financial pressure necessitates an upward adjustment in pricing models, resulting in increased premium rates for travelers. Such price hikes directly diminish the affordability of travel protection plans, particularly for budget-conscious consumers and families, thereby dampening the adoption rate of these essential financial products.

This cost burden is substantiated by recent industry data highlighting the magnitude of payouts. According to the Association of British Insurers, in 2025, member companies paid out a substantial £472 million in travel insurance claims for the preceding year, with medical expenses alone accounting for £262 million of this total. This significant expenditure underscores the operational strain on insurers. Consequently, as coverage becomes prohibitively expensive for a wider segment of the population, market penetration slows, effectively countering the growth potential otherwise offered by the resurgence in global tourism.

Key Market Trends

The adoption of parametric insurance is fundamentally restructuring the market by moving away from traditional indemnity models toward automated, event-triggered payouts. This mechanism allows insurers to settle claims immediately upon verifiable triggers, such as flight delays or weather disruptions, thereby eliminating lengthy claims processing times and administrative overhead. This efficiency is driving premium product adoption among travelers seeking guaranteed convenience and rapid liquidity during travel disruptions. According to Blink Parametric, May 2025, in the 'Blink Parametric and MAWDY Ireland Reveal Results' report, the integration of these automated solutions resulted in an 11 percent increase in the take-up of premium products offering flight disruption cover.

Concurrently, the market is witnessing a decisive shift toward mobile-first claims management and integrated digital travel companions. Insurers are transitioning from static policy providers to active journey partners by embedding real-time safety alerts, telemedicine access, and instant claim filing capabilities directly into mobile applications. This evolution addresses the modern traveler's expectation for immediate on-trip support and seamless digital interaction rather than retrospective reimbursement. According to Allianz Partners, December 2025, in the 'Allyz TravelSmart App Sees Explosive Growth With New Features for 2025' press release, the company recorded a 250 percent increase in travel app downloads between 2024 and 2025, highlighting the rapid consumer pivot toward app-centric insurance ecosystems.

Segmental Insights

The Business Travelers segment is currently recognized as the fastest-growing category within the Global Travel Insurance Market due to a significant resurgence in corporate mobility and heightened risk awareness among enterprises. Organizations are increasingly mandating comprehensive travel insurance to adhere to strict duty of care obligations and to protect employees against unforeseen medical emergencies or travel disruptions. Furthermore, the rising trend of combining professional assignments with leisure activities has necessitated more robust coverage policies. This strategic focus on employee safety and financial mitigation is driving substantial demand for tailored business travel insurance solutions globally.

Regional Insights

Europe maintains a leading position in the global travel insurance market, driven principally by robust tourism activity and strict regulatory compliance measures. The dominance of this region is largely attributed to the Schengen Agreement, which mandates that international visitors obtain compulsory medical insurance to secure entry visas. This requirement guarantees a consistent demand for coverage products from inbound travelers across the continent. Furthermore, the presence of established insurance providers and a strong culture of travel protection among European residents contribute significantly to the sustained stability and expansion of the regional market sector.

Recent Developments

• In May 2025, AXA Partners US launched a new suite of travel insurance plans specifically designed for United States residents traveling to the European Schengen area. The product line included three distinct tiers to cater to different traveler needs, ranging from essential coverage that met visa requirements to comprehensive annual plans for frequent travelers. The new offerings provided protection for medical expenses, emergency evacuation, and trip interruptions, while also ensuring compliance with the specific insurance mandates for Schengen visa applications. This launch aimed to simplify the visa process for American tourists while offering robust financial protection during their European trips.
• In December 2024, Zurich Insurance Group finalized the acquisition of AIG’s global personal travel insurance and assistance business for $600 million. This strategic transaction combined the acquired entity with the company's existing travel insurance provider to create a leading global travel insurer. The deal significantly expanded the insurer's footprint in the United States and enhanced its capabilities in the global market. The combined business began operating under a new unified brand, leveraging shared technology platforms to deliver broadened services and assistance to millions of customers and distribution partners worldwide.
• In July 2024, Cover Genius formed a significant partnership with Priceline to introduce embedded travel protection solutions for travelers across North America. By integrating the insurtech company's global distribution platform into the online travel agency's booking system, the collaboration offered tailored coverage for flights, hotels, rental cars, and travel packages. The initiative allowed customers to easily view policy details, file claims, and receive instant payments through a unified digital account. This move was designed to replace off-the-shelf insurance products with technology-driven, customized protection that matched specific traveler itineraries and needs.
• In January 2024, Allianz Partners announced a strategic collaboration with NatWest Group to serve as the exclusive travel insurance provider for the bank's packaged account customers in the United Kingdom. This partnership extended across the banking group's family of brands, including NatWest, Royal Bank of Scotland, and Ulster Bank. Through this agreement, the company leveraged its digital capabilities to offer account holders access to a dedicated assistance hub integrated directly within the bank’s mobile application. The service allowed customers to manage their policies, purchase additional coverage, and track claims seamlessly, enhancing the overall digital customer experience for the bank’s clients.

Key Market Players

• Allianz
• American International Group, Inc.
• AXA
• ASSICURAZIONI GENERALI S.P.A.
• USI Insurance Services, LLC
• battleface
• Insure & Go Insurance Services Limited
• Seven Corners Inc.
• Travel Insured International
• Zurich
• Delphi Financial Group, Inc.
• Ping An Insurance (Group) Company of China, Ltd.

By Coverage Type	By Provider	By End User	By Region
Single Trip Travel Insurance Annual Multi-trip Travel Insurance Long Stay Travel Insurance	Banks Insurance Companies Insurance Intermediaries Others (Insurance Aggregators, etc.)	Education Travelers Business Travelers Family Travelers Others (Senior Citizens, etc.)	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Travel Insurance Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Travel Insurance Market, By Coverage Type:

• Single Trip Travel Insurance
• Annual Multi-trip Travel Insurance
• Long Stay Travel Insurance

• Travel Insurance Market, By Provider:

• Banks
• Insurance Companies
• Insurance Intermediaries
• Others (Insurance Aggregators, etc.)

• Travel Insurance Market, By End User:

• Education Travelers
• Business Travelers
• Family Travelers
• Others (Senior Citizens, etc.)

• Travel Insurance Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE