There is no denying that both luxury and affordable accommodations have increased in number recently in the tourism industry. And it seems sense that there would be a rise in the need for travel insurance as more people traveled for leisure. The World Health Organization (WHO) estimates that 1.5 billion people travel annually, and this number is anticipated to rise sharply in the years to come. According to a 2020 market research by SkyQuest on travel insurance, 41% of those asked stated they would take more chances if they knew their vacation would be covered in the event 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 traveI 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 traveI insurance may be due to a lack of knowledge about how to purchase it or the uncertainty of whether it is worth the investment.

At Least 63% of People Travel Without travel insurance in Developed Countries

Demand for the travel market continues to grow globally, with the market expected to reach an annual value of $71.33 billion by 2028. To help understand the demand for traveI insurance, SkyQuest technology surveyed a sample of 10,000 individuals in the US, Canada, India, China, UK, Germany, and the Netherlands. The results of this study indicated that 63% of respondents had either traveled without traveI insurance or only purchased minimal coverage.

When considering whether or not to purchase traveI 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 the 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. To address this growing concern, more insurers will likely begin marketing their products specifically toward 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 TraveI 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 traveI 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 the African traveI 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 traveI insurance policies.

There are many reasons why people may not purchase traveI insurance. Some people in the traveI 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 traveI 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 to provide 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’ perspective, trends, market dynamics, opportunities potential risks, and challenges in the travel insurance market. The report would help the companies in formulating growth strategies by understanding demand and supply gaps and identifying new revenue pockets to expand their reach.

Top Players in the Global Travel Insurance Market

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