United States Travel Insurance Market to Grow with a CAGR of 5.13% through 2030
The United States travel
insurance market is expanding due to rising travel activities, increased
awareness, and demand for comprehensive coverage, includes digitalization,
customizable plans, and COVID-19-influenced policy enhancements
According
to TechSci Research report, “United States Travel Insurance Market – By
Region, Competition, Forecast & Opportunities, 2030F”, the United
States Travel Insurance market stood at USD 3.39 billion in 2024 and is
anticipated to grow USD 4.56 billion by 2030 with a CAGR 5.13% during forecast period. The United States travel insurance market is experiencing steady
growth, driven by increasing awareness of travel risks, rising outbound
tourism, and the expansion of digital distribution channels. Travel insurance
provides financial protection against unforeseen circumstances such as trip
cancellations, medical emergencies, lost luggage, and travel delays. With a
growing number of Americans traveling domestically and internationally, the
demand for comprehensive coverage has surged, prompting insurance providers to
innovate and expand their offerings.
Several factors contribute to the
expansion of the United States travel insurance market. First, the increasing
number of international and domestic travelers has significantly boosted the
need for travel insurance policies. As more individuals explore global
destinations for leisure, business, and adventure, the likelihood of
encountering unexpected disruptions has grown. This has led to higher adoption
of travel insurance policies that cover medical expenses, trip cancellations,
and emergency evacuations.
Another major driver is the rising
awareness of travel risks. The COVID-19 pandemic played a crucial role in
highlighting the importance of travel insurance, as many travelers faced trip
cancellations, unexpected medical emergencies, and travel disruptions. This
shift in perception has made travelers more cautious, leading to a sustained
demand for comprehensive coverage, particularly for emergency medical expenses
and trip protection.
Technological advancements in insurance
distribution have also contributed to the market’s growth. The rise of online
travel insurance platforms allows travelers to compare multiple plans, purchase
policies seamlessly, and access real-time customer support. Artificial
intelligence (AI) and machine learning (ML) are increasingly being used to
enhance risk assessment, claims processing, and fraud detection, improving
overall efficiency and customer experience.
Additionally, the demand for customized
insurance plans has risen significantly. Many insurers now offer tailored
policies that cater to specific traveler needs, such as adventure sports
coverage, business travel protection, and senior citizen travel insurance. This
customization enhances customer satisfaction and encourages policy adoption
among niche traveler groups.
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" United States Travel Insurance Market”
The United States Travel Insurance market is segmented
into trip type, mode of purchase, traveler type, travel type, and company.
Based on the mode of purchase, the insurance
agents/brokers segment is the fastest growing in the United States travel
insurance market, driven by personalized service, expert guidance, and
customized policy recommendations. As travel becomes more complex, consumers
seek professional advice to navigate coverage options, exclusions, and claim
processes. Brokers leverage digital platforms and AI-powered tools to compare
plans and enhance customer experience. Their ability to offer tailored
solutions for corporate travelers, adventure seekers, and high-risk
destinations fuels growth. Additionally, rising awareness of COVID-19-related
coverage and medical emergencies has increased reliance on agents, positioning
them as key players in the market’s expansion.
Based on the region,
the West region is the fastest-growing segment in the United States travel
insurance market, driven by increasing outbound travel, rising tourism, and a
tech-savvy population embracing digital insurance platforms. States like
California, Washington, and Nevada serve as major travel hubs, with high demand
for international and adventure travel insurance. The presence of leading
insurtech companies and innovative policy distribution channels accelerates
market growth. Additionally, the region's strong focus on eco-tourism and
outdoor activities fuels demand for specialized coverage. As travelers seek
comprehensive protection, the West’s dynamic travel landscape continues to
drive rapid expansion in the travel insurance sector.
Major companies
operating in United States Travel Insurance market are:
- Seven
Corners, Inc.
- USI
Insurance Services, LLC
- Customized
Services Administrators, Inc.
- Trip
Mate, Inc. (MH Ross Travel Insurance Services)
- Chester
Perfetto Agency, Inc. (Travel Safe Insurance)
- Berkshire
Hathaway Specialty Insurance Company
- American
International Group, Inc. (AIG)
- Crum
& Forster Holdings Corp. (Travel Insured International)
- Travelex
Insurance Services, Inc.
- AXA
Assistance USA Inc.
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“The key trend
is the growing demand for COVID-19-related coverage. Many insurance providers
have introduced pandemic-specific plans that cover trip cancellations, medical
treatment, and quarantine expenses. As travelers remain cautious about
potential disruptions, these policies have gained popularity, ensuring
continued market growth. The adventure and experiential travel segment is also
driving demand for specialized insurance policies. More travelers are engaging
in extreme sports, wildlife safaris, and remote expeditions, requiring
comprehensive coverage for high-risk activities. Insurers are offering tailored
policies that provide emergency medical evacuation, equipment loss protection,
and extreme weather coverage, catering to adventure enthusiasts,” said Mr.
Karan Chechi, Research Director of TechSci Research, a research-based
management consulting firm.
"United States Travel
Insurance Market, By Trip Type (Single Trip Travel Insurance, Annual Multi-Trip
Travel Insurance), By Mode of Purchase (Insurance Agents/Brokers, Insurance
Companies, Others (Insurtech Companies, Third Party, etc.)), By Traveler Type
(Senior Citizens, Education Travelers, Business Travelers, Family Travelers,
Independent Travelers), By Travel Type (Domestic Travel, International Travel),
By Region, Competition, Forecast & Opportunities, 2020-2030F”,
has evaluated the future growth potential of United States Travel Insurance market
and provides statistics & information on market size, structure and future
market growth. The report intends to provide cutting-edge market intelligence
and help decision makers take sound investment decisions. Besides, the report
also identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in the United States Travel Insurance market.
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