A new report from Allied Market Research gives a positive outlook on the future of travel insurance in Europe. The European travel insurance market is expected to generate US$10.39 billion by 2027, despite the fact that travel restrictions imposed by many local European governments severely impacted the demand for travel insurance throughout the global pandemic.
High growth rate in Austria
Although the single-trip travel insurance segment contributed to the highest market share in 2019, between 2020 and 2027, the annual multi-trip travel insurance segment is expected to witness the highest compound annual growth rate (CAGR) of 17.8 per cent, says Allied Market Research.
What’s more, Austria is projected to witness the largest CAGR of 18.6 per cent in the same period, giving the UK, which as of 2019, contributed to nearly one-third of the total market share, a run for its money.
Mandatory travel insurance requirements to drive market penetration
With many countries now imposing regulations that make travel insurance a prerequisite for inbound travel, and thanks to the fact that more of the ‘baby boomer’ demographic are planning to travel or have booked travel, Allied Market Research predicts that Europe will witness considerable growth in the adoption of travel insurance.
While Allied Market Research notes that a lack of sufficient awareness and low penetration levels of travel insurance have hindered the growth of the European market, many insurers have, since the pandemic stretches on, been forced to revise their polices and cover the expenses related to coronavirus treatment in their offerings. Cancel for any Reason coverage has also started to be included in travel insurers’ offerings, and these expanded products and services, along with technological developments, will create new opportunities in the coming years.