Today’s tourism resurgence is contributing to the growth of the global travel insurance market, according to The Business Research Company’s newly released ‘Travel Insurance Global Market Report 2022’.
It only makes sense that increases in travel itself and trip insurance would go hand in hand. Travel insurance companies complement the tourism sector by offering travelers plan packages that cover issues like medical emergencies, flight cancellations or delays, passport losses, and the misplacement or loss of their luggage.
The report points out that in 2019, the last “normal” year prior to the pandemic, the United Nations World Tourism Organization (UNWTO) recorded 1.5 billion international tourist arrivals worldwide, which represents a four-percent increase over the previous year.
With the travel sector continuing to bounce back throughout 2022 and being on track to achieve pre-pandemic revenue levels in 2023, the travel insurance market is bound to grow alongside it, especially given the ongoing unpredictability of air travel, the state of the economy and the ongoing Russian war on Ukraine.
The Business Research Company reports that the size of the global travel insurance market is projected to increase from $16.05 billion in 2021 to $18.81 billion in 2022 at a compound annual growth rate (CAGR) of 17.2 percent. And, looking further ahead, the global travel insurance market share is forecast to grow all the way up to $32.61 billion in 2026 at a CAGR of 14.7 percent.
Key Market Trend: Advanced Technologies
In examining the major trends affecting today’s market, The Business Research Company noted that many of the travel insurance sector’s major players are prioritizing the incorporation of new technologies within their operations to strengthen their market position. The report highlights an instance where one company has implemented an artificial intelligence (AI)-based cashless claims settlement process, thereby automating the claims authorization process. To enable this innovation, the company has utilized various algorithms using Cognitive Computing, along with Intelligent Character Recognition (ICR) and Optical Character Recognition (OCR).
Travel Insurance Market’s Major Players
According to The Business Research Company, today’s major players in the travel insurance market are: Allianz SE, American Express Company, American International Group Inc., Assicurazioni Generali S.P.A, Atlas Travel Insurance, Aviva plc, Axa S.A., Bajaj Finserv Limited, Berkshire Hathaway Specialty Insurance Company, Chubb Limited, Generali Group, Insure & Go Insurance Services Limited, MAPFRE, Prudential Financial Inc., Saga Plc, Seven Corners Inc., Crum & Forster, Travelex Insurance Services Inc., USI Affinity Inc., Zurich Insurance, and Arch Capital Group Ltd.
Travel Insurance Market Segmentation
The 2022 Travel Insurance Global Market Report also clarifies the distinctions among the travel insurance market’s various segments:
— By Type: Domestic, International
— By Insurance Cover: Single-Trip Travel Insurance, Annual Multi-Trip Travel Insurance, Long-Stay Travel Insurance
— By Coverage: Medical Expenses, Trip Cancellation, Trip Delay, Property Damage, Others
— By End User: Senior Citizens, Corporate Travelers, Family Travelers, Education Travelers, Others
— By Distribution Channel: Insurance Intermediaries, Insurance Companies, Banks, Insurance Brokers, Others
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Source: TravelPulse
