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The global travel insurance market is expected to be valued at more than $35 billion by 2025, according to Adroit Market Research. In 2019, UStiA found that Americans alone spent nearly $4 billion on Travel Insurance, a 40.6% rise from 2016. However, In 2020, Americans spent approximately $1.72 billion on all types of travel protection, which was quite a reduction from the previous study. Predictions are high and already statistics are showing a promising significant increase in travel for 2023.
Over the past ten years, the travel insurance industry has blossomed into a multi-billion dollar industry and it is forecasted to continue its impressive growth rate through the 2020s. There are several reasons why travel insurance has such a big market right now. Many people have had to experience the cost of losing money spent on trip costs such as flights, hotels, car rentals, events from weddings to business conferences that were canceled due to the recent pandemic, trip cancellations, and more. Those are costs that couldn’t be recouped and so people are looking into insurance benefits to prepare themselves for the unexpected. Also, transportation is cheaper and faster, allowing more people to travel internationally with regularity. This is where having the ability to offer several travel health insurance plans can help offset the cost of delayed travel or cancelations.
No matter where or when people decide to travel there are a few universal risks that travel insurance can help to protect them against. When things completely outside of their control are becoming more common, travelers are likely to turn to travel insurance for financial protection in case their trips don’t go the way they had planned. Some key risks include:
The increasing instances of extreme weather around the world mean that natural disasters are of more concern to travelers. Whether it’s a flight-grounding storm, erupting volcano or simply an unprecedented heatwave, natural events can have a huge impact on a traveler’s plans.
Being away from home exposes even the healthiest of people to new germs and unusual risks that make illness and injury more likely than in their everyday lives. While many people still choose to wear masks in crowded areas, many have let their masks go. This year we have experienced a larger and harsher outbreak of the flu virus because more people are leaving home without masks. Germs are everywhere! Even outbreaks of deadly diseases like Ebola and Coronavirus are becoming the “new normal” and are almost impossible to predict.
An ever-changing global risk, terrorism threats are a small but terrifying possibility for many travelers. With the war in Ukraine still being fought, and political unrest in Iran, European travel can be impacted negatively. Protection against worst-case scenarios would be necessary, particularly for travelers bound for politically-unstable areas or places where terrorism has been a problem in the past.
Increasing geopolitical uncertainty and rising inflation are among the biggest risk factors for business travel in 2023. There are also LGBTQ concerns and political unrest globally. Travel insurance can be particularly important for people who are a minority in their destination country, either because of ethnicity, gender or sexual orientation.
While concerning, these factors make travel insurance a worthwhile investment for many travelers. This presents an unprecedented opportunity for those supplying many types of travel insurance plans that cover people internationally as well as those traveling to and throughout the United States.
If you are a licensed independent insurance agent, you are likely already certified to sell travel insurance. Travel retailers and others in the travel industry can also learn more about the products and services Treppy™ has to offer. To learn more about tapping into this market, please contact our team of licensed professionals who can help you get started selling travel insurance to people around the world.
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