APAC leads in travel insurance growth with 22.1% CAGR

Globally, the market’s premiums are slated for $107b.

Asia-Pacific’s travel insurance market is projected to post the fastest growth, with a compound annual growth rate (CAGR) of 22.1% from 2022 to 2032, according to an Allied Market Research report.

Rising disposable incomes, increased travel activity, and growing insurance awareness—especially in China and India—are expected to drive demand across the region.

The global travel insurance market is projected to record total premiums worth $107b by 2032—nearly seven times higher than 2022 levels—driven by a CAGR of 20.1%.

The sector’s growth is being fueled by rising international travel for both business and leisure, coupled with growing awareness of travel-related risks such as medical emergencies and trip cancellations. 

These factors are increasing demand for travel insurance as a financial safeguard.

In 2022, insurance intermediaries accounted for nearly one-third of global travel insurance revenues, maintaining the largest market share due to their extensive networks, personalised services, and strong customer relationships.

This segment is expected to retain its lead throughout the forecast period. 

Meanwhile, insurance aggregators are forecast to record the highest CAGR at 23.0% from 2023 to 2032, as their platforms allow consumers to compare a wide range of policies, offering greater convenience and choice.