Travel insurance market set to reach $106.8b by 2032

The region showed the fastest-growing CAGR.

The travel insurance market is projected to surge with a compound annual growth rate (CAGR) of 20.1% from $16.8b in 2023 to an anticipated $106.8b by 2032, according to Allied Market Research’s latest report.

Europe leads in revenue, buoyed by robust tourism and awareness of travel risks. Meanwhile, Asia-Pacific exhibits the fastest CAGR, driven by rising awareness and disposable incomes, particularly in countries like China and India.

The rapid growth in tourism, facilitated by online comparison sites and evolving travel regulations, propels market expansion. However, a lack of awareness about travel insurance policies poses a challenge. Nonetheless, product expansion and technological advancements offer growth opportunities.

In terms of insurance coverage, single-trip travel insurance dominates, offering comprehensive coverage.

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Yet, long-stay travel insurance is expected to grow rapidly due to increased demand from long-term travellers.

The insurance aggregators segment is poised for sustained growth, offering diverse policy options. Among distribution channels, insurance intermediaries lead with personalised services, while insurance aggregators show the highest growth due to their wide policy range.

Family travellers dominate the end-user segment, driven by the need for protection against unforeseen events. Conversely, business travellers exhibit the highest growth due to globalisation and increased corporate travel.

In terms of age group, 31-49-year-olds hold the largest market share, driven by active participation in travel and higher disposable income. However, the 18-30-year-old segment shows the highest growth, reflecting increased demand for adventurous travel experiences.