Travel Insurance Market 2030: The Shift to Annual Multi-Trip Policies in Europe

The global travel insurance market was valued at approximately USD 27.05 billion in 2024 and is projected to expand at a compound annual growth rate (CAGR) of 15.4% from 2025 to 2030. This growth can be primarily attributed to the increasing popularity of travel and tourism worldwide, as well as a rising awareness among travelers about the importance of purchasing dedicated insurance to protect against various unexpected events that can occur during their trips. These events may include flight delays, lost luggage and personal belongings, or trip cancellations. As more travelers recognize the need for such coverage, the market for travel insurance continues to expand.

In addition, technological advancements are playing a significant role in driving market growth. Travel insurance is becoming more accessible as it is increasingly bundled with online ticket bookings, making it easier for consumers to purchase coverage when they book their travel arrangements. This convenience, coupled with the growing recognition of the need for insurance, is further accelerating the adoption of travel insurance worldwide.

Moreover, collaboration between insurance providers is also contributing to the expansion of the market. Numerous insurance companies are entering into partnerships to offer a wider range of travel insurance policies with comprehensive coverage at competitive prices. For example, in October 2023, Trawick International, an insurance company, partnered with STARR INTERNATIONAL COMPANY, INC., a global insurer, to introduce three new travel insurance policies underwritten by Starr Indemnity & Liability Company, a U.S.-based subsidiary of STARR. These new policies—Safe Travels Defend, Safe Travels Armor, and Safe Travels Protect—offer comprehensive protection, including trip cancellation coverage, and are backed by an "A" (excellent) rating from A.M. Best, a leading global credit rating agency for the insurance industry. The introduction of these policies provides travelers with reliable coverage options at competitive rates, further boosting the appeal of travel insurance.

Gather more insights about the market drivers, restrains and growth of the Global Travel Insurance Market

Regional Insights

The North America travel insurance market is expected to grow at a robust compound annual growth rate (CAGR) during the forecast period. This growth is primarily driven by a significant increase in both domestic and international travel as pandemic-related restrictions ease and consumer confidence rebounds. Travelers in the region are becoming more aware of the necessity of securing travel insurance to protect against a range of unforeseen circumstances, including trip cancellations, medical emergencies, and travel delays. In response to this demand, insurers in North America are expanding their offerings, providing a broader array of flexible and comprehensive coverage options. These policies are designed to meet the needs of diverse travel segments, including adventure travel and business trips, thereby further driving market expansion.

U.S. Travel Insurance Market Trends

The U.S. travel insurance market held a dominant share in 2024, and this trend is expected to continue. A key factor contributing to the market’s growth is the increasing demand for personalized and flexible insurance coverage options. U.S. travelers, who often have varying and specific needs, are increasingly seeking insurance plans tailored to their unique travel situations. This shift is fueled by growing consumer awareness about the importance of customized coverage that can address various travel scenarios, such as medical emergencies, trip interruptions, and travel delays. As consumers become more informed, the demand for tailored plans designed to provide peace of mind during travel continues to rise, further propelling the market’s growth.

Europe Travel Insurance Market Trends

Europe is the dominant player in the global travel insurance market, accounting for the largest market share of 35.1% in 2024. This market dominance is a result of a growing emphasis on traveler safety and security, with European travelers increasingly prioritizing comprehensive insurance coverage. There is a rising demand for policies that address a wide range of potential risks, including health emergencies, trip cancellations, and baggage loss. In response, insurers are creating innovative products that cater to specific travel preferences, such as multi-trip policies, coverage for adventure travelers, and specialized options for business travelers. Furthermore, the rise of digital platforms has made purchasing travel insurance easier and more accessible. Consumers are increasingly turning to online tools to compare policies, ensuring they secure the coverage that best suits their needs in a convenient and efficient manner.

In the UK, the travel insurance market is expected to grow rapidly in the coming years, driven by several factors. These include the increasing availability of package holidays, rising disposable incomes, widespread media coverage highlighting diverse travel options, and the convenience of online travel booking platforms. As the tourism industry expands, there is a noticeable uptick in reported incidents such as lost luggage, misplacement of important travel documents, natural disasters, and medical challenges. This uptick has further underscored the importance of travel insurance, leading to increased demand for coverage.

The German travel insurance market also held a substantial share in 2024, supported by a diverse range of products that cater to different types of travelers. These include options specifically designed for business travelers, families, and adventure enthusiasts. The ability of insurers to provide customized coverage that meets the specific needs of different traveler segments is a key factor behind the market’s strong performance.

Asia Pacific Travel Insurance Market Trends

The Asia Pacific region is expected to experience significant growth in the travel insurance market during the forecast period. As the middle class in many countries within the region grows and travel patterns evolve, more people are exploring both regional and international destinations. With travelers encountering a wide range of climates, healthcare standards, and security conditions across various Asia-Pacific countries, there is a growing need for travel insurance that protects against unexpected events like illness, injury, and travel disruptions. High medical expenses in certain countries further highlight the importance of comprehensive health coverage for travelers in the region, driving the demand for travel insurance.

The Japanese travel insurance market, in particular, is expected to grow rapidly in the coming years. As more Japanese travelers venture abroad, there is an increasing recognition of the security and support that travel insurance provides in unfamiliar environments. Japanese travelers are particularly concerned about their health and safety when traveling overseas, where language barriers and differences in healthcare systems can make medical emergencies more challenging to manage. As a result, the demand for travel insurance that offers reliable medical coverage and emergency support is rising.

In China, the travel insurance market held a substantial share in 2024, reflecting the growing importance of insurance as the country’s outbound tourism continues to surge. Chinese travelers now make up a significant portion of the global travel market, and as their travel habits evolve, the need for comprehensive travel insurance has become more pronounced. The rapid expansion of China’s outbound tourism, particularly to destinations outside of Asia, has further highlighted the importance of securing travel insurance that can protect against potential risks, including medical emergencies, trip cancellations, and travel delays. This trend is expected to continue as Chinese tourism grows in both scale and geographic diversity.

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Key Travel Insurance Company Insights

Some of the key companies in the travel insurance market include Allianz, American International Group, Inc., AXA, ASSICURAZIONI GENERALI S.P.A., and others. Prominent players dominate with comprehensive coverage options, leveraging extensive distribution networks and strong brand trust to capture significant portions of the market. Companies with integrated digital platforms and advanced data analytics have been particularly successful as they streamline the customer journey from policy selection to claims processing, catering to tech-savvy travelers seeking convenience. Additionally, partnerships with airlines, travel agencies, and banks have proven to be strategic for expanding market reach and enhancing product visibility at critical touchpoints.

Allianz provides a broad array of coverage options tailored to meet the needs of diverse travelers, including those seeking comprehensive protection for leisure, business, and adventure trips. Allianz has also embraced digital innovation, providing a seamless online platform and mobile app to simplify policy management, claim filing, and service access, which makes it a popular choice for tech-savvy travelers looking for convenience alongside comprehensive protection.
American International Group, Inc. offers a range of travel insurance solutions designed to address the specific needs of travelers worldwide, including policies focused on comprehensive medical coverage, trip cancellation, and personal liability. Known for its robust financial backing, the company is equipped to support travelers in complex or high-risk situations, making it an appealing choice for international travelers and expatriates.

Key Travel Insurance Companies:

The following are the leading companies in the travel insurance market. These companies collectively hold the largest market share and dictate industry trends.