According to market insights firm Research and Markets, the development and growing popularity of China’s tourism industry marks a period of significant strategic opportunity for the travel insurance sector. Its new report, China Travel Insurance Market Competition Forecast & Opportunities, predicts that China’s travel insurance market will be driven between 2024 and 2028 through rising tourist demand, leading to increased exposure of companies and individuals to new financial risks with each flight.
Domestic tourism industry to boost the market demand for travel insurance
Ease of access to online travel reservations, festival holidays, new touristic activities, and an increase in individuals prioritising time for leisure have all had a direct impact on China’s travel insurance industry due to an increase in accidents and unforeseen events.
The need to protect against unforeseen damage alongside associated financial costs, such as loss of personal belongings, medical emergencies, accidents, disability of the insured person, and missed departure, is expected to increase market demand for travel insurance during the forecast period.
Return of China’s outbound tourism to boost market growth
As the pandemic slowed and countries reopened their borders to international tourism, the lack of Chinese visitors brought about significant economic hardship. From Phuket to Paris, major tourist destinations had previously relied on an estimated 150 million Chinese visitors spending up to US$255 billion on sightseeing yearly. Despite a gradual reopening, China’s tourism market in the first quarter of 2022 showed a significant change that has maintained momentum.
Increasing business travel expenditure to boost the market demand
New spending patterns have emerged in recent years, such as those associated with business travel, whether travelling to a different branch of the same company, to a different location to meet suppliers or business partners, or to a conference or business event. The report identifies several advantages of these trends, including decreased mass consumption, increased travel to new places, and the development of eco-friendly tourism.
Also from Research and Markets, the International Private Health Insurance Market Insights Report 2023 declared that the IPMI industry is in a strong position, with both insurers and brokers forecasting a period of increased growth over the next few years.