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The travel insurance market in Asia-Pacific is expected to be worth US$9.87 billion by 2022, up from US$5.54 billion in 2016.
According to a report by Allied Market Research, the travel insurance sector is expected to achieve a compound annual growth rate (CAGR) of 10.1% from 2016 to 2022. As of 2016, the single trip segment is the largest in the market.
The growth in the Asia-Pacific travel insurance market is driven by increased travel among senior citizens, who place more emphasis on secure travel and are usually part of big tour groups or accompanied by family. The report added that the increase in family and business travellers is expected to generate increased demand for travel cover in the region.
Japan is the largest country market for travel insurance, making up almost 22% of the entire market in 2016. Meanwhile, India’s travel insurance sector is expected to achieve a CAGR of 22.3% until 2022. This is due to discounted travel packages, cheaper air fares, and growing consumption among urban dwellers. Aside from India, the report also highlighted Thailand as another market showing potential.
Online insurance aggregators are expected to grow rapidly in Asia-Pacific, but insurance intermediaries are expected to maintain their dominance in the coming years.
Single-trip insurance policies will continue to have a high market share, but multi-trip travel insurance cover has great potential for growth, the report said.
