Global Travel Insurance Market: A Lot of Potential Left Untapped in the Industry – SkyQuest Technology
Global travel insurance market was valued at USD 13.61 billion in 2021, and it is expected to reach a value of USD 71.33 billion by 2028, at a CAGR of 26.70% over the forecast period (2022–2028).
Westford, USA, July 27, 2022 (GLOBE NEWSWIRE) — There is no doubt that the world of travel has seen a proliferation in both luxury and budget accommodations over recent years. And with more people travelling for leisure, it stands to reason that there would be an increase in the demand for travel insurance. According to the World Health Organization (WHO), an estimated 1.5 billion people are travelling annually, and this figure is expected to grow significantly in the coming years. As per SkyQuest analysis on travel insurance market in 2020, 41% of travelers surveyed said they would take more risks if they knew their trip would be covered in case of an emergency.
This increase in travel insurance need is likely due to a number of factors; namely, the rise in tourism and international travel, as well as personal factors such as incidents that have occurred on traveler’s recent trips. According to CAA, a British travel insurance company, the average cost of an annual travel insurance policy has increased by 20% since 2014.
Despite this increase in demand for travel insurance market, not all travelers are not buying travel insurance. And even if they are, many travelers don’t seem to be using it as much as they should. According to a study by Insure My Trip, only 55% of Canadians have travel insurance cover for a European holiday and just 53% have cover for a trip to Australia or New Zealand.
The study also found that only 27% of American adults buy travel insurance, despite the fact that it could save them money in the event of an accident or illness while abroad. This lack of interest in travel insurance may be due to a lack of knowledge about how to purchase it or the uncertainty of whether it is worth the investment.
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At Least 63% People Travel Without Travel Insurance in Developed Countries
Demand for travel market continues to grow globally, with the market expected to reach an annual value of $71.33 billion by 2028. In order to help understand the demand for travel insurance, SkyQuest technology conducted a survey with a sample of 10,000 individuals in the US, Canada, India, China, UK, Germany, and Netherlands. The results of this study indicated that 63% of respondents had either traveled without travel insurance or only purchased minimal coverage.
When considering whether or not to purchase travel insurance, respondents in the survey in travel insurance market were most concerned with the potential costs associated with a trip (54%) and personal safety (50%). Only 15% of respondents felt that they needed to take action in case something went wrong while on their trip.
Based on this study on travel insurance market, it can be inferred that there is a significant segment of the population that does not feel comfortable traveling without adequate protection against potential emergencies. In order to address this growing concern, it is likely that more insurers will begin marketing their products specifically towards those who are least likely to purchase them—those who are least likely to need them.
Less than 10% People in Asia and Latin America Buy Travel Insurance
Developing countries have a very low penetration of travel insurance, which puts their citizens at a disadvantage when traveling. A study by the World Bank found that only about 10% of people in developing countries have travel insurance compared to 36% in developed countries. In countries such as Thailand, Cambodia, India, and China, Brazil, Colombia where people spend nearly $3 a day to survive, are found with least penetration of travel insurance.
The situation is worst in African travel insurance market. A recent study by SkyQuest found that only 1.8% of travelers in Africa and 2.1% of travelers in South-East Asia had travel insurance policies.
There are many reasons why people may not purchase travel insurance. Some people in the travel insurance market may believe it is not necessary for them, given their lack of experience travelling outside their own country. Others may think that any losses incurred during a trip will be covered by the government or their insurer anyway.
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Booking Platforms have Become the Major Distributor of Travel Insurance
As the travel insurance market evolves, so does the way people protect themselves against potential risks abroad. One such recent trend has seen booking platforms taking on a leading role in providing travel insurance, both as an added service to their customers and as a way to differentiate themselves from the competition.
Most notably, platform giants like Airbnb and TripAdvisor now offer their own dedicated travel insurance policies, which can be purchased directly through their respective websites or apps. This means that not only are customers able to buy insurance at the same place they make their bookings, but they also receive additional discounts and benefits when compared to buying standalone policies elsewhere.
In a recent study by SkyQuest Technology on travel insurance market, Booking.com was found to be the most popular platform for purchasing travel insurance, with 59% of users saying that they had purchased insurance through the site. At second place was Expedia, with 54% of users reporting that they had done the same.
In July 2022, BimaPlan partnered with Zingbus for providing travel insurance. This would help the company tap the potential consumer base who travels via road.
Booking platforms in the global travel insurance market have become valuable resources for travelers because of their expansive offerings and user-friendly interfaces. Not only are these sites great sources for finding lodging and other rental items, but they also provide a wide range of travel services, such as airline tickets and vacation packages. Plus, many of these sites offer supplementary products like travel insurance, which can be essential for ensuring a safe and worry-free trip.
While there are plenty of other great travel websites out there, booking platforms are clearly leaders when it comes to providing essential products and services for travelers. Considering this in mind, SkyQuest has published a report on travel insurance market that focuses on consumer behavior, market analysis, market penetration of travel insurance, consumers prospective, trends, market dynamics, opportunities potential risk and challenges in the travel insurance market. The report would the help the companies in formulating growth strategies by understanding demand and supply gap and identifying new revenue pockets to expand their reach.
Top Players in Global Travel Insurance Market
- Allianz Partners (France)
- American Express (US)
- American International Group Inc. (US)
- Arch Capital Group Ltd. (Bermuda)
- Aviva PLC (UK)
- Berkshire Hathaway Specialty Insurance (US)
- China Pacific Insurance Co., Ltd. (China)
- Chubb Limited (Switzerland)
- Assicurazioni Generali Group (Italy)
- Groupama Sigorta AS (France)
- HanseMerkur Insurance Group (Germany)
- InsureandGo (UK)
- Ping An Insurance Company of China, Ltd. (China)
- Seven Corners Inc. (US)
- SOMPO Holdings, Inc. (Japan)
- Travelex Insurance Services Inc. (US)
- Zurich Insurance Group Ltd (Switzerland)
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