Amid the Covid-19 crisis, the global market for travel insurance, estimated at US$21.5 billion in the year 2020, is projected to reach a revised size of $33.7 billion by 2027, growing at an annual rate of 6.7 per cent between 2020 and 2027.
Domestic travel, one of the segments analysed in the report, is projected to record 6.2 per cent annual growth, and reach a value of $14.5 billion by the end of the analysis period. After an early analysis of the business implications of the pandemic and its induced economic crisis, growth in the international travel segment is readjusted to a revised seven per cent for the next seven-year period.
Noteworthy markets include US, China, Japan and Canada
The travel insurance market in the US is estimated at $5.8 billion in 2020. China, the world’s second-largest economy, is forecast to reach a projected market size of $7.3 billion by the year 2027. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 3.7 per cent and 5.9 per cent respectively over the 2020-2027 period. Within Europe, Germany is forecast to grow at approximately grow by 4.3 per cent.
An increase in travel among the baby boomer demographic, among other things, is to boost the travel insurance market in Europe once Covid-19 travel restrictions begin to lift.