A new study from the US Travel Insurance Association (UStiA) suggests that consumers in the US are spending as much as $4 billion on travel insurance annually, demonstrating a welcome willingness to safeguard their financial health against potential risks.
In 2018, according to UStiA’s 2016-2018 Travel Protection Market Study, Americans spent approximately $3.8 billion on all types of travel protection – including annual products, per-trip coverage and all flavours of benefits – representing a staggering 40.9-per-cent increase compared with 2016. Around 65.8 million people (49.1-per-cent higher than in 2016) were protected by more than 46.3 million plans (36.5-per-cent more than 2016), and UStiA also found that these plans were purchased through myriad different channels, including travel insurance providers, travel agents, aggregators and online suppliers.
The vast majority – nearly 90 per cent – of travel protection products purchased by American consumers in 2018 included benefits for trip cancellation and interruption, while products and programmes with more of a focus on medical and medical evacuation benefits accounted for 6.3 per cent of overall sales.
“The industry has continuously evolved to meet the needs of the marketplace,” commented UStiA’s Executive Director Megan Cruz. “With increased mobility, the travel insurance industry has met the needs of the market by providing products and coverages that protect lives, valuables and investment.”
The study was conducted on behalf of UStiA by Willis Towers Watson.