Travel insurance market to grow by $12.07b by 2028 

Key drivers include rising consumer disposable income.

The travel insurance market is projected to grow by $12.07b, with a compound annual growth rate (CAGR) of 10.24% from 2023 to 2028, a Technavio report said.

This growth is driven by increasing tourism and business travel, alongside the digitalisation of insurance processes that make it easier for consumers to purchase and manage policies. 

As travel insurance becomes a more integral part of travel planning, companies are offering policies that cover risks such as weather delays, mechanical issues, and medical emergencies.

Key drivers include rising consumer disposable income, mandatory travel insurance in countries like the US, UK, and Australia, and the integration of technology such as APIs, artificial intelligence, and GPS. 

However, challenges remain, including a lack of consumer awareness and delayed claim settlements. 

Slow processing of claims, particularly across international borders, has led to hesitation amongst potential customers, which could affect the market’s growth. 

Despite these obstacles, innovation and improved customer experience are expected to sustain the industry's momentum through the forecast period.