Southeast Asia travel insurance Market Expected to Reach $1,390.32 Million by 2032

According to a recent report published by Allied Market Research, titled, “Southeast Asia travel insurance Market by Insurance Cover, Distribution Channel, End User, and Mode: Opportunity Analysis and Industry Forecast, 2024-2032,” The Southeast Asia travel insurance market was valued at $356.22 million in 2019, and is projected to reach $1,390.32 million by 2032, registering a CAGR of 13.9% from 2024-2032.

The travel insurance industry is experiencing notable shifts across Southeast Asia, driven by evolving consumer behaviors, regulatory dynamics, and technological advancements. With outbound tourism on the rise, there's a growing demand for comprehensive coverage, particularly among travelers seeking specialized policies for adventure and niche experiences. Digitalization is reshaping the landscape, facilitating easier access to policies, and streamlined claims processes. However, while opportunities abound, challenges such as price sensitivity, regulatory complexities, and limited awareness persist. To capitalize on this dynamic market, insurers must innovate, offering tailored products, forging strategic partnerships, and leveraging data analytics for risk assessment and product development. Despite hurdles, the industry remains poised for growth, with potential for expansion into emerging markets and the introduction of innovative solutions to meet the diverse needs of Southeast Asian travelers. For instance, in July 2022, Singapore-based neobank YouTrip has launched an in-app travel insurance product due to an increase in travel demand. Through the app, travelers will be able to buy a single-trip policy with up to 65% savings on their plan. The neobank also guaranteed 15% cashback for users on each purchase of a single-trip policy from their HL Assurance Covid-19 travel plan.

By end user, the family travelers segment acquired a major Southeast Asia travel insurance market share in 2019. This is due to the increasing intergenerational travel trends between families. In addition, with the rise of adventure travel packages, the younger generation of travel influencers is growing rapidly, allowing families to travel with their children who are over the age of 18. This propels the growth of the segment. However, the business travelers segment is witnessing the highest growth in the coming years. Rapid digitalization in corporate and tourism sectors and a surge in penetration of the Internet of Things (IoT) in various businesses have led to a rise in international traveling for business purposes such as meetings, business expansion, and others, which notably contributed toward the growth of the market. Moreover, the increase in the frequency of international traveling of medium-sized businesses for meeting new clients, expanding their business, and learning new business trends has positively impacted the growth of the market.

Country-wise, Singapore dominated the Southeast Asia travel insurance market share in 2019. Surge in demand for comprehensive coverage and increasing awareness of the need for protection against various risks, including medical emergencies and trip cancellations, propel the growth of the market in the country. However, Thailand is expected to witness the highest growth during the forecast period. There is a trend towards customization, with insurers tailoring products to cater to specific traveler demographics and preferences. In addition, partnerships with airlines and travel agencies are becoming more prevalent, expanding distribution channels and enhancing accessibility to travel insurance products, which are anticipated to provide numerous opportunities in the country.

Key Findings of the Study

• Depending on insurance cover, the single-trip travel insurance segment is accounted for the largest Southeast Asia travel insurance market share in 2019.
• Based on distribution channel, the insurance intermediaries segment is accounted for the largest Southeast Asia travel insurance market share in 2019.
• Depending on end user, the family travelers segment is accounted for the largest Southeast Asia travel insurance market share in 2019.
• Depending on mode, the online segment is accounted for the largest Southeast Asia travel insurance market share in 2019.
• Country-wise, Singapore dominated the Southeast Asia market share in 2019.

The key players that operate in the Southeast Asia travel insurance market analysis are American International Group, Inc., Zurich Insurance Group, AXA, Allianz Group, Muang Thai Insurance Public Company Limited, MSIG Insurance (Singapore) Pte. Ltd, Income Insurance Limited, Great Eastern Holdings Ltd, Berjaya Sompo Insurance Berhad, and Chubb Limited. These players have adopted various strategies to increase their market penetration and strengthen their position in the Southeast Asia travel insurance industry. For instance, in March 2024, AIG General Insurance Company Limited launched “Travel Guard Plus,” a comprehensive travel insurance product that redefines complete coverage for travelers with an array of bundle plans. AIG’s Travel Guard Plus has been meticulously designed to meet people’s diverse travel needs with a wide range of plans where 41 different types of covers have been packaged to meet the need of customers.