Press Release

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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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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