Travel Insurance Market to Reach $94.66 billion, Globally, by 2032 at 16% CAGR: Maximize Market Research

Travel Insurance Market is expected to reach USD 94.66 Bn by 2032. This surge is primarily driven by the post-pandemic boom in international travel, increasing disposable income, and rising awareness about financial protection during trips.

Market to Hit USD 94.66 Bn by 2032

Travel Insurance Market was priced at USD 28.87 Bn in 2024, and is predicted to be developing at a CAGR of 16%, by means of 2025-2032, attaining USD 94.66 Bn by 2032. Travel Insurance Market is growing exponentially, primarily driven by the rise of tourism in Europe and North America. The European market had the largest share of 43.1% in 2024. The tourism sector contributed USD 9.5 trillion to the economy, equivalent to 9.1% of global GDP in 2023. Foreign-tourist arrivals are expected to increase to 1.8 billion by 2030, opening space for travel insurance demand. Schengen Visa applicants are required to have insurance with coverage of a minimum 30,500$ of medical expenses. Mandatory travel insurance for all incoming tourists was enforced by the UAE in 2022, which helped boost the sales of policies by 20% Online insurance sales are increasing significantly at a 2030 CAGR of 18.2% with OTAs and airline direct websites contributing to 40% of purchases.

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Market Segmentation
Insurance Coverage: The ownership of single-trip travel insurance continues to dominate the scene, with 60.1% of the market area in 2024. Owing to its comprehensive advantages/application including lost baggage cover, flight cancellations, emergency medical treatment, and trip interruption, this segment is anticipated to lead the growth with a CAGR of 16%.

By Distribution Channel: In 2024, insurance companies accounted for the largest share of 34.8% of the value of the market. These companies offer travel insurance plans using direct distribution, digital channels, and partnerships with travel agents. AI-Driven Technologies Like with every other industry, insurance has become a lot more efficient with the use of AI in its processes.

Market Regional Analysis
Europe, accounted for the highest travel insurance market value share of 43.1% in the world in 2024, supported by stringent visa policies mandating travelers to have travel insurance. Countries like Germany and France have strict insurance policies that require travelers to have insurance in case medical emergencies occur or trips are disrupted.

North America, the travel insurance market in the U.S. is quickly taking off, owing to the increase in international business tours and leisure travel. Overseas trips by U.S. residents account for a sizable share of the market, with AIG’s Travel Guard brand ranking first in this travel-insurance segment.

Asia-Pacific, was estimated as the fastest growing at 16.7% CAGR during the study period. Emerging economies such as India and China are also seeing an uptake of travel insurance as individual incomes increase and outbound tourism rises. The launch of vaccinated travel lanes by Singapore in 2024 has also contributed to increased market demand.

Market Competitive Landscape

Allianz Global Assistance – Revenue: USD 5.4 billion (2024). Launched COVID-19 coverage plans with up to USD 1 million in benefits. In Feb 2025 – Launched a new digital claims platform to enhance customer experience.

AXA Travel Insurance – Revenue: USD 3.7 billion (2024). Focused on AI-based insurance underwriting for quick claim settlements. In Jan 2025 – Partnered with Booking.com to provide seamless travel insurance integration.

Generali Global Assistance – Revenue: USD 3.2 billion (2024). Strong presence in Europe, with plans for blockchain integration in claim processing. In Nov 2024 – Introduced AI-powered chatbot for instant claim approvals.

Market Latest Trends & Developments

• The rise of embedded travel insurance within airline and OTA platforms is making insurance purchases more convenient.
• AI-driven chatbots and claim automation are reducing settlement times, enhancing customer satisfaction.
• Blockchain adoption in insurance contracts ensures transparency and security in claim processing.
• Growth in adventure tourism has led to the introduction of customized insurance plans covering extreme sports.

Conclusion

• Europe dominated the market in 2024 with a share of 43.1%, owing to mandatory travel insurance policies for visa applicants.
• Expanded outbound travelers and regulatory conformity with state laws fuel the growth of the S. market.
• Enhanced customer experience and increased market access via digital distribution channels, AI, and big data analytics.
• The surge of international business travel is driving demand for corporate travel insurance solutions.

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