The global travel insurance market has grown from US$19.14 billion in 2022 to US$22.44 billion (about £17.97 billion) this year at a compound annual growth rate (CAGR) of 17.3%, according to a new study by analytics firm Research and Markets.
The travel insurance market is expected to hit US$40.58 billion in 2027, growing at a CAGR of 16%.
Major players in the travel insurance sector include Allianz SE, American International Group, Chubb, Generali, Zurich and others, Research and Markets said.
The adoption of new technology has emerged as a key trend gaining popularity in the travel insurance space, with major players in the sector focusing on new technologies to bolster their positions in the market, the study found. For instance, last year India-based insurance marketplace Policybazaar launched an AI-enabled WhatsApp chatbot to automate the claims settlement process for its clients.
A rise in tourism has contributed to growth in the sector. According to a report published last year by the United Nations World Trade Organization, global tourism increased from 400 million in 2020 to 415 million in 2021, a 4% jump year on year, Research and Markets said.
Asia-Pacific was the largest region in the travel insurance market in 2022, according to the report. The regions covered in the study were Asia-Pacific, Western Europe, Eastern Europe, North America, South America, and the Middle East and Africa.
Countries covered in the report were the US, the UK, Australia, China, Brazil, France, Germany, India, Indonesia, Japan, South Korea and Russia.
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