These are some of the insights regarding the future of the global travel insurance market and other aspects and factors driving market growth currently, which were obtained during extensive study and analysis conducted by market research firm, Prudour.
Travel insurance plans are designed to cover costs arising from losses, and also to reduce risks associated with unexpected events encountered while traveling. Prudour analysis of various segments across markets in North America, Europe, China, Japan, India, Middle East & Africa, South America, and Rest of the World reveals that revenue from the global travel insurance market will increase at a Compound Annual Growth Rate (OTCPK:CAGR) of over 4.5%. Single-trip insurance being the most preferred insurance plan has emerged the major revenue contributor and growth driver of the global market.Going by an optimistic scenario, revenue from the global travel insurance market is projected to increase at a CAGR of 5.7 % and reach a value of $21,162M in 2026, while likely and conservative scenarios indicate CAGR of 4.7% and value of $18,244M, and CAGR of 4.0% and value of $17,00M respectively for the same forecast period.
The market in Europe has been estimated to account for a highest revenue share of over $5,500M in 2018, and is expected to register a moderate CAGR of 4.7% over a nine-year period. This projected high revenue growth can be attributed to high penetration of travel insurance offerings and increasing number of individuals who are nearing retiree age opting to go places. The number of outbound tourists from Europe was 596.1M in 2016, and is projected to increase to 842M in 2030.
North America is the second-largest market currently, and is estimated to account for revenue share of 28.3% in the global market in 2017. This is projected to increase at a CAGR of 4.6% over the next nine years, attributed to presence of prominent players such as CSA Travel Protection, Seven Corners Inc., TravelSafe Insurance, Travel Insured International, coupled with increasing presence of domestic travel insurance providers in countries in the region. The number of outbound tourists from North America was 96M in 2016, and is projected to increase to 198Mn in 2030. Favorable government regulations related to travel insurance, coupled with increasing incidences of loss of luggage, medical emergencies, and natural calamities reported in countries in the region are expected to continue to boost adoption of travel insurance in future.
The market in Asia Pacific is also expected to witness significant revenue growth between 2016 and 2026, particularly driven by travel insurance sales in China and Japan. The number of outbound tourists from Asia Pacific was 317M in 2016, and is projected to increase to 535M in 2030. Increasing presence of prominent international insurance firms in the country, as well as rising number of domestic insurance providers, are major factors anticipated to fuel growth of the China travel insurance market. Meanwhile, government regulations in Japan that mandate travel insurance for all international travelers is expected to continue to fuel growth of the Japan travel insurance market.
The market in the Middle East & Africa accounted for revenue share of 4.6% in the global travel insurance market in 2016 and was valued at over $520M, which is further projected to reach a value of around $800M in 2026. This projected growth is attributed to increasing number of tourists visiting African countries, especially for adventure trips in the Sub-Saharan deserts and rain forests in the Congo. This is also projected to open up revenue opportunities for prominent international players in the market in the region to expand market footprint and revenue