Travel insurance is an essential investment for many travelers, providing peace of mind and financial protection in the event of unexpected events or emergencies while abroad.
As the global travel industry continues to recover from the impacts of the COVID-19 pandemic, understanding the latest travel insurance statistics and trends is critical for both travelers and industry professionals alike.
This article aims to provide insights into the current state of the travel insurance market, including market size, consumer behaviors and preferences, top providers, and emerging trends.
The global travel insurance market size was valued at USD 18.6 billion in 2020 and is expected to reach USD 30.2 billion by 2028, growing at a CAGR of 6.5% from 2021 to 2028. (Source: Grand View Research)
According to a survey by Squaremouth, a travel insurance comparison site, travel insurance purchases for international trips increased by 20% in the first quarter of 2021 compared to the same period in 2020, despite ongoing pandemic-related restrictions. (Source: Forbes)
In 2020, the top five travel insurance providers in the US by market share were Allianz Global Assistance, AIG Travel, Generali Global Assistance, Travel Guard, and Arch RoamRight. (Source: Insurance Information Institute)
The most common reasons for purchasing travel insurance are medical emergencies, trip cancellations or interruptions, and baggage or personal item loss or theft. (Source: Squaremouth)
According to a study by Chubb, a global insurance company, the top five countries where US travelers purchased travel insurance in 2020 were Mexico, the United Kingdom, Canada, Italy, and France. (Source: Chubb)
In a survey by the US Travel Insurance Association, 59% of respondents said they are likely to purchase travel insurance for their next trip, and 21% said they are more likely to purchase travel insurance now compared to before the pandemic. (Source: US Travel Insurance Association)
According to a study by TravelInsurance.com, the average cost of a travel insurance policy for a two-week international trip in 2020 was $139. (Source: TravelInsurance.com)
Travel Insurance Trends
In 2021, the most popular types of travel insurance policies were cancel-for-any-reason (CFAR) and COVID-19 coverage, according to a report by Squaremouth. (Source: Squaremouth)
The use of telemedicine services in travel insurance policies increased by 1,000% in 2020, according to a report by Generali Global Assistance. (Source: Generali Global Assistance)
The pandemic has led to an increased interest in travel insurance, with Google searches for “travel insurance” doubling in the first half of 2021 compared to the same period in 2020. (Source: TravelPulse)
Younger travelers are more likely to purchase travel insurance than older travelers, with 62% of Millennials and 58% of Gen Z reporting they have bought travel insurance for a trip, according to a survey by InsureMyTrip. (Source: InsureMyTrip)
Multi-trip policies are becoming more popular among frequent travelers, with a 20% increase in sales in the first quarter of 2021 compared to the same period in 2020, according to a report by Squaremouth. (Source: Squaremouth)
The top reasons for purchasing travel insurance in 2021 were concerns about the COVID-19 pandemic, followed by trip cancellations or interruptions, and medical emergencies, according to a report by InsureMyTrip. (Source: InsureMyTrip)
In 2020, cancellations accounted for 89% of all travel insurance claims, with the majority of cancellations related to the COVID-19 pandemic, according to a report by the US Travel Insurance Association. (Source: US Travel Insurance Association)
The average cost of a travel insurance policy with cancellation coverage was $228 in 2020, according to a report by TravelInsurance.com. (Source: TravelInsurance.com)
A survey by InsureMyTrip found that the top reason for purchasing travel insurance in 2021 was concerns about trip cancellations or interruptions. (Source: InsureMyTrip)
The pandemic has led to more flexible cancellation policies among travel providers, with 75% of hotels offering flexible cancellation policies in 2021 compared to just 25% in 2019, according to a report by Skift. (Source: Skift)
Sources & Citations
Squaremouth: https://www.squaremouth.com/current-events/travel-insurance-and-coronavirus-faqs
Generali Global Assistance: https://www.generalitravelinsurance.com/blog/travel-insurance-trends-2020.html
TravelPulse: https://www.travelpulse.com/news/travel-insurance/interest-in-travel-insurance-has-doubled-since-2020-heres-why.html
InsureMyTrip: https://www.insuremytrip.com/travel-insurance-marketplace/newsroom/2021/04/05/2021-travel-insurance-trends-report-released/
Squaremouth: https://www.squaremouth.com/current-events/travel-insurance-sales-jump-20-percent-first-quarter/
InsureMyTrip: https://www.insuremytrip.com/travel-insurance-marketplace/newsroom/2021/04/05/2021-travel-insurance-trends-report-released/
Grand View Research: https://www.grandviewresearch.com/industry-analysis/travel-insurance-market
Forbes: https://www.forbes.com/advisor/travel-insurance/travel-insurance-sales-jump-20-percent-first-quarter/
Insurance Information Institute: https://www.iii.org/fact-statistic/facts-statistics-travel-insurance
Squaremouth: https://www.squaremouth.com/current-events/travel-insurance-and-coronavirus-faqs
Chubb: https://www.chubb.com/us-en/individuals-families/resources/travel-insurance-2020.html
US Travel Insurance Association: https://www.ustravelinsurance.org/about-us/press-releases/travel-insurance-survey-reveals-greater-demand-amid-covid-19-concerns/
TravelInsurance.com: https://www.travelinsurance.com/blog/average-cost-of-travel-insurance/
US Travel Insurance Association: https://www.ustia.org/blog/covid-19-and-travel-insurance
Squaremouth: https://www.squaremouth.com/current-events/travel-insurance-sales-jump-20-percent-first-quarter/
TravelInsurance.com: https://www.travelinsurance.com/resources/average-cost-of-travel-insurance/
InsureMyTrip: https://www.insuremytrip.com/travel-insurance-marketplace/newsroom/2021/04/05/2021-travel-insurance-trends-report-released/
Skift: https://skift.com/2021/05/17/pandemic-increased-travelers-appetite-for-flexible-cancellation-policies/
