Senior citizen travel insurance could be worth $16.7 billion by 2032
The sector is projected to grow at a compound annual growth rate (CAGR) of 18.3%, driven by rising life expectancies and healthcare costs
The senior citizen travel insurance market is projected to be worth US$16.7 billion globally by 2032, according to a report by Allied Market Research.
This is up from a total value of $3.6 billion in 2023, and represents a CAGR of 18.3% between 2024 and 2032.
Key drivers for growth include rising average life expectancy worldwide, as well as rising healthcare costs.
Single-trip travel insurance dominated the senior citizen travel insurance segment in 2023, due to its greater cost-effectiveness for older people who do not travel frequently.
Despite this, the long-stay travel insurance segment is expected to attain the largest CAGR over the 2024–32 period, owing to more older people opting for extended trips or stays abroad, both for leisure and retirement purposes.
Insurance intermediaries, such as brokers and agents, have the largest share of distribution for senior travel insurance in 2023 – driven by a preference among the demographic for the expertise and human touch they offer.
However, the popularity of insurance aggregators is expected to grow rapidly between 2024 and 2032, becoming the most popular distribution channel by the end of the period. This is driven by the growing popularity of online platforms among the demographic, due to their speed, convenience, and choice of options.
Meanwhile, the global business travel market is projected to reach $928.4 billion by 2030, according to a report by Research and Markets.