Single Trip Travel Insurance Market Expected to Reach $45.89 Billion by 2030

According to a recent report published by Allied Market Research, titled, “Global Single Trip Travel Insurance Market by Distribution Channel and End User: Global Opportunity Analysis and Industry Forecast, 2021–2030,” the global single trip travel insurance market size was valued at $8.85 billion in 2020, and is projected to reach $45.89 billion by 2030, growing at a CAGR of 19.1% from 2021 to 2030.

The single trip travel insurance plan is beneficial for those who travel abroad once in a while. This plan allows the insurance coverage from the start of the journey until the policyholder and the accompanying beneficiaries are back inside the country’s borders. Furthermore, the key factor that drives the growth of the single trip travel insurance market includes rapid growth in tourism and increase in use of digital distribution channel among insurance providers. In addition, favorable government regulations regarding travel insurance positively impacts the growth of the single trip travel insurance market trends. However, lack of awareness regarding single trip travel insurance policy hampers the market growth. On the contrary, introduction of new products and services and new technological developments in travel insurance industry are expected to offer remunerative opportunities for expansion of the market during the forecast period.

Depending on distribution channel, the insurance intermediaries sector holds the largest single trip travel insurance market share of the market as they enable transactions between travel industry service providers such as airlines, hotels, car rental companies, and travel agencies in the country. However, the insurance aggregators segment is expected to grow at the highest rate during the single trip travel insurance market forecast period, as the aggregators are providing consumers with adequate information and help make informed decisions about the purchases of insurance policies in the market.

Region wise, the single trip travel insurance market was dominated by Asia-Pacific in 2020 and is expected to witness significant growth during the forecast period, owing to increase in awareness related to the significant advantage of single trip travel insurance among the single trip population.

The single-trip travel insurance market has witnessed significant growth in the past few years; however, due to the outbreak of the COVID-19 pandemic, the market is projected to witness a sudden downfall in 2020. This is attributed to global fear of the virus and unprecedented travel restrictions, which has tremendously reduced the demand for travel services. The single trip travel insurance industry is projected to prosper in the upcoming years after the recovery from the COVID-19 pandemic. Various tourism destinations across the Middle East, Asia-Pacific, Europe, and the U.S. have implemented restrictions since January 2020. In the wake of the COVID-19 virus outbreak in December 2019, the disease has spread to almost 180+ countries around the globe with the World Health Organization declaring it a public health emergency. The global pandemic has already starting adversely affecting the single-trip travel insurance market. Owing to lockdown, countries across the world have imposed travel ban, which has resulted in a greater number of people claiming for cancelled holidays and business trips. This has resulted in freezing the coverage of travelers and many companies changing their policies.  

Key Findings of the Study

• By distribution channel, the insurance intermediaries segment accounted for the largest single trip travel insurance market growth in 2020.
• By region, Asia-Pacific generated highest revenue in 2020.
• By end user, the family travelers generated the highest revenue in 2020.

The key players profiled in the single trip travel insurance market analysis are AGA Service Company, Bajaj Allianz General Insurance Company, Care Health Insurance, GeoBlue, HDFC ERGO General Insurance Company Limited, ICICI Lombard General Insurance Company Ltd., IFFCO-Tokio General Insurance Company Limited, Nationwide, Reliance General Insurance, and World Nomads. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.