The travel insurance market is expected to surpass USD 35 billion by 2027, as reported in a research study by Global Market Insights Inc. Expanding tourism industry is likely to boost the demand. There has been an increase in the number of adventure travelers that undertake high-risk sports activities, encouraging them to invest in travel insurance policies to protect themselves from unfortunate circumstances during the trip. The growth of the adventure tourism is attributed to the presence of attractive landscape and availability of a large variety of activities.
The growing popularity of adventure travel blogging and video logging in social media platforms helps in increasing awareness about the benefits of travel insurance. Travel insurance providers offer customized policies for various activities including water sports, mountain sports, and racing sports.
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The increasing availability of extended travel insurance will help the market to grow at a substantial rate. Extended travel insurance covers longer-than-average holiday due to an emergency or flight cancellation. Extended travel insurance policies provide coverage for cancellation of trip, emergency medical treatment, personal belongings & baggage, passports & travel documents, and accommodation & legal expenses. The market players offer emergency hotel extension with additional lodging and boarding expenses if the travel companion is hospitalized abroad due to COVID-19. In case of lockdown in the destination country the travel insurance is automatically extended up to the mentioned period for the safety of travelers.
The expanding tourism sector in North America will offer growth opportunities to the travel insurance market. According to the Travel and Tourism Satellite Account, the tourism industry produced USD 1.6 trillion in the total economic output in 2018. National Travel and Tourism Office (NTTO) reduces institutional barriers to tourism and coordinates efforts across federal agencies through the Tourism Policy Council.
The governments of the U.S. and Canada are focusing on expanding the tourism market for economic growth, augmenting travel insurance sales in North America. To mitigate the risks associated with the occurrences of uncertainties, costumers are opting for travel insurance. The rise in the tourist population owing to attractive tourist destinations and easy online travel booking options will propel the regional travel insurance market growth.
Some major findings of the travel insurance market report are:
- The travel insurance market will witness growth owing to the integration of advanced technology-based digital tools by insurance providers. The travel insurance distribution platforms are enhancing customer experience with the help of technologies including Artificial Intelligence (AI), Application Program Interface (API), data analytics, geo-location, and Global Positioning System (GPS).
- Easy availability of online travel reservations and discounted package trips will help in market expansion. Online travel reservation platforms collaborate with insurance providers to offer tailored service, international assistance, claims service, and discounted package trips.
- Supportive government initiatives to support international tourism is the driving force for growth in the travel insurance industry. The government’s mandatory laws and regulations have encouraged international tourists to purchase travel insurance as a prerequisite for VISA applications.
- There has been an increase in the number of adventure travelers globally who focus on exploring new destinations and undertaking sports & recreational activities to enjoy leisure time. Various travel insurance companies are offering customized offerings for such activities.
- Various market players offer travel insurance plans specifically for senior citizens that include greater cover for pre-existing and age-related health issues. The travel insurance companies provide a dedicated helpline number for senior citizens to minimize disruptions on their trip.