Annual Travel Insurance Market Size, Share, Growth, and Industry Analysis, By Types (Personal Insurance, Group Insurance), By Applications (Insurance Intermediaries, Insurance Company, Bank, Insurance Broker, Others) , and Regional Insights and Forecast to 2034

Annual Travel Insurance Market Size

The Global Annual Travel Insurance Market size was USD 24.9 Billion in 2024 and is projected to reach USD 29.5 Billion in 2025, further expanding to USD 108.84 Billion by 2034. The industry is expected to exhibit a CAGR of 15.61% from 2025 to 2034. With more than 62% of travelers seeking medical coverage and 47% choosing trip cancellation protection, the market is gaining strong momentum. Digital channels accounted for over 58% of policy sales, and around 55% of younger travelers prefer annual multi-trip policies compared to 36% in older demographics.

The US Annual Travel Insurance Market is expanding significantly, driven by 67% of outbound travelers purchasing insurance before departure. More than 54% of frequent corporate travelers opt for annual policies, while 42% of buyers prioritize baggage coverage. Additionally, digital distribution has surged, with over 61% of policy sales happening online. The U.S. market is supported by strong consumer awareness and rapid adoption of AI-driven claim processes, making it one of the most lucrative regions for insurers.

Key Findings

• Market Size: Global Annual Travel Insurance Market was $24.9 billion (2024), $29.5 billion (2025), and $108.84 billion (2034) with 15.61% growth.
• Growth Drivers: 62% travelers prefer medical coverage, 54% choose multi-trip policies, 47% opt trip cancellation, 41% demand baggage protection.
• Trends: 58% policies sold online, 55% younger travelers buy annual plans, 33% prefer digital claims, 39% select customizable options.
• Key Players: Allianz, AXA, Generali, AIG, Tokio Marine & more.
• Regional Insights: North America 34%, Europe 29%, Asia-Pacific 25%, Middle East & Africa 12% market share with diverse growth patterns.
• Challenges: 22% claim delays, 31% travelers face complex documentation, 19% awareness gap, 26% low emerging market adoption rates.
• Industry Impact: 49% prefer digital policies, 42% trust bundled services, 28% mobile adoption, 36% growth linked to corporate travel.
• Recent Developments: 27% flexible add-ons introduced, 21% expansion in Asia-Pacific, 34% faster claims, 18% online adoption, 22% growth in app-based policies.

The annual travel insurance Market is evolving rapidly with digital-first strategies, customizable products, and wider policy adoption among young travelers. Approximately 59% of consumers consider convenience as a primary factor, while over 40% emphasize affordability, reshaping how policies are designed and distributed globally.

Annual Travel Insurance Market Trends

The annual travel insurance Market is witnessing strong momentum due to rising international tourism and growing awareness among travelers about financial protection during trips. Nearly 62% of policyholders prioritize medical emergency coverage, while 47% opt for trip cancellation protection. Around 55% of travelers under the age of 40 prefer multi-trip annual policies compared to 36% in older groups, highlighting shifting consumer choices. Additionally, over 41% of buyers consider baggage loss coverage as a crucial factor, while 33% show preference for digital claim settlement services. Online distribution channels dominate with more than 58% share, indicating a rapid shift toward digital platforms. These percentage-based shifts clearly show how consumer preference and purchasing behavior are shaping the overall annual travel insurance Market.

Annual Travel Insurance Market Dynamics

OPPORTUNITY

Digital Adoption in Policy Distribution

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DRIVERS

Increasing International Travel

More than 59% of policies are now sold through online aggregators, while mobile-based purchases account for over 28% of total sales. This digital penetration creates new opportunities for insurers to expand reach and improve efficiency.

RESTRAINTS

"Low Awareness in Emerging Regions"

Only 27% of travelers in emerging markets are aware of annual travel insurance products, and less than 19% actively purchase coverage. Limited awareness continues to restrict market expansion despite rising travel volumes.

CHALLENGE

"High Claim Rejection Rates"

Survey data indicates that nearly 21% of claims face delays or rejections, leading to lower customer trust. Additionally, about 34% of travelers perceive claim procedures as complicated, creating a significant challenge for wider adoption.

Segmentation Analysis

The global annual travel insurance Market was valued at USD 24.9 Billion in 2024 and is projected to reach USD 29.5 Billion in 2025, growing further to USD 108.84 Billion by 2034, at a CAGR of 15.61% during 2025-2034. By type, Personal Insurance accounted for a significant portion of market share in 2025, while Group Insurance followed with steady growth potential. By application, Insurance Intermediaries, Insurance Companies, Banks, Insurance Brokers, and Others each contributed to the market with unique shares, reflecting a diversified distribution structure. Each type and application segment is expected to see different growth trajectories driven by consumer demand, rising international travel, and digital adoption.

By Type

Personal Insurance

Personal insurance dominates the annual travel insurance market, supported by the rising number of individual travelers seeking coverage for medical emergencies, baggage loss, and trip cancellations. Nearly 61% of policies sold fall under this type, driven by growing awareness and convenience.

Personal Insurance held the largest share in the market, accounting for USD 18.2 Billion in 2025, representing 61.7% of the total market. This segment is expected to grow at a CAGR of 16.2% from 2025 to 2034, driven by digital adoption, younger traveler demand, and enhanced policy customization.

Top 3 Major Dominant Countries in the Personal Insurance Segment

• United States led the Personal Insurance segment with a market size of USD 4.6 Billion in 2025, holding a 25% share and expected to grow at a CAGR of 16.5% due to strong travel frequency and awareness.
• Germany accounted for USD 2.9 Billion in 2025, with 16% share, expected to grow at 15.9% CAGR, driven by regulatory mandates and increasing outbound tourism.
• Japan contributed USD 2.1 Billion in 2025, with 11.5% share, projected to expand at 15.7% CAGR owing to high digital adoption and frequent business travel.

Group Insurance

Group insurance is witnessing steady adoption, especially by corporates and tour operators offering comprehensive coverage for employees and group travelers. About 38% of the policies sold fall under this segment, reflecting demand from collective travel programs and cost efficiency benefits.

Group Insurance accounted for USD 11.3 Billion in 2025, representing 38.3% of the total market. This segment is forecast to grow at a CAGR of 14.7% from 2025 to 2034, fueled by business travel growth, education tours, and corporate policies.

Top 3 Major Dominant Countries in the Group Insurance Segment

• United Kingdom led the Group Insurance segment with USD 2.8 Billion in 2025, holding a 24% share and expected to grow at 15% CAGR due to large outbound corporate travel volume.
• China accounted for USD 2.5 Billion in 2025, with 22% share, projected to grow at 14.9% CAGR, supported by tour operators and educational travel groups.
• Australia generated USD 1.7 Billion in 2025, with 15% share, anticipated to grow at 14.5% CAGR due to rising leisure group travel demand.

By Application

Insurance Intermediaries

Insurance intermediaries account for the largest application channel, contributing significantly to sales volume due to their wide networks and advisory roles. Nearly 34% of travel insurance policies are distributed through intermediaries, indicating their crucial role in shaping market growth.

Insurance Intermediaries accounted for USD 10.0 Billion in 2025, representing 34% of the total market, and are expected to grow at a CAGR of 15.9% from 2025 to 2034, driven by personalized consulting and expanded distribution reach.

Top 3 Major Dominant Countries in the Insurance Intermediaries Segment

• United States led the Intermediaries segment with USD 2.8 Billion in 2025, holding a 28% share and growing at 16% CAGR due to dominance of broker-driven sales.
• France accounted for USD 1.9 Billion in 2025, with 19% share, expanding at 15.8% CAGR due to regulatory framework favoring intermediaries.
• India contributed USD 1.5 Billion in 2025, with 15% share, growing at 16.2% CAGR supported by rising agent-led insurance adoption.

Insurance Company

Direct sales through insurance companies represent 27% of market distribution, as insurers invest in strengthening brand loyalty and offering value-added bundled services. Consumers trust direct company purchases for reliability and faster claim resolution.

Insurance Company sales reached USD 8.0 Billion in 2025, holding a 27% share, and are projected to grow at a CAGR of 15.4% through 2034, driven by innovative policy models and improved customer engagement.

Top 3 Major Dominant Countries in the Insurance Company Segment

• Germany held USD 2.1 Billion in 2025, accounting for 26% share, expanding at 15.5% CAGR with strong direct insurance culture.
• United States captured USD 1.8 Billion in 2025, holding 23% share, projected at 15.6% CAGR, led by insurer-led marketing strategies.
• Japan achieved USD 1.3 Billion in 2025, with 16% share, at 15.2% CAGR, owing to preference for direct insurer trust.

Bank

Banks are increasingly becoming a key distribution channel through bancassurance, offering travel insurance bundled with credit card and travel packages. Around 19% of policies are sold via banking channels, highlighting their growing role in this ecosystem.

Bank distribution represented USD 5.6 Billion in 2025, accounting for 19% share, and is expected to grow at a CAGR of 15.7% during the forecast period, supported by cross-selling initiatives and wide banking penetration.

Top 3 Major Dominant Countries in the Bank Segment

• United States held USD 1.6 Billion in 2025, with 28% share, projected to grow at 15.8% CAGR due to credit card-linked travel policies.
• United Kingdom accounted for USD 1.2 Billion in 2025, 21% share, expanding at 15.6% CAGR driven by bancassurance popularity.
• Singapore contributed USD 0.9 Billion in 2025, 16% share, growing at 15.5% CAGR owing to digital banking-led sales.

Insurance Broker

Insurance brokers account for about 12% of the market, serving as specialized advisors for customized policies. Brokers appeal to travelers with unique requirements, including corporate packages and multi-trip policies.

Insurance Brokers contributed USD 3.5 Billion in 2025, with 12% share, expected to expand at a CAGR of 15.8% from 2025 to 2034, driven by professional expertise and niche product offerings.

Top 3 Major Dominant Countries in the Insurance Broker Segment

• United Kingdom held USD 1.0 Billion in 2025, 29% share, expanding at 15.9% CAGR, due to strong broker-based ecosystem.
• United States captured USD 0.9 Billion in 2025, 26% share, growing at 15.7% CAGR, led by specialized corporate insurance brokers.
• Australia recorded USD 0.7 Billion in 2025, 20% share, expanding at 15.6% CAGR, owing to tour operator collaborations.

Others

Other distribution channels including online aggregators, e-commerce platforms, and travel agents account for about 8% of total share. These channels are gaining traction due to convenience and instant policy issuance.

Others accounted for USD 2.4 Billion in 2025, representing 8% share, and are forecasted to grow at 15.5% CAGR till 2034, driven by online booking integration and aggregator-based growth models.

Top 3 Major Dominant Countries in the Others Segment

• India generated USD 0.7 Billion in 2025, holding 29% share, expected to grow at 15.8% CAGR, driven by aggregator-led insurance purchases.
• China accounted for USD 0.6 Billion in 2025, with 25% share, growing at 15.6% CAGR due to e-commerce channel adoption.
• United States contributed USD 0.5 Billion in 2025, with 21% share, expanding at 15.7% CAGR through digital travel partnerships.

Annual Travel Insurance Market Regional Outlook

The global annual travel insurance Market, valued at USD 24.9 Billion in 2024, is projected to reach USD 29.5 Billion in 2025 and USD 108.84 Billion by 2034 at a CAGR of 15.61% between 2025 and 2034. Regionally, North America contributed the largest share at 34%, followed by Europe at 29%, Asia-Pacific at 25%, and the Middle East & Africa at 12%. Each region demonstrates unique growth drivers such as digital insurance adoption, rising outbound tourism, and corporate travel insurance penetration, shaping the overall market expansion.

North America

North America continues to dominate the annual travel insurance Market, supported by a strong base of outbound travelers and widespread awareness of insurance products. More than 67% of international travelers in the U.S. purchase insurance before departure, while 54% in Canada adopt annual policies. Growth is fueled by digital claim platforms and bundled policy offerings.

North America held the largest share in the annual travel insurance market, accounting for USD 10.03 Billion in 2025, representing 34% of the total market. This region is expected to grow at a CAGR of 15.7% from 2025 to 2034, driven by corporate travel demand, advanced digital distribution, and high consumer awareness.

North America - Major Dominant Countries in the Annual Travel Insurance Market

• United States led North America with a market size of USD 6.0 Billion in 2025, holding a 60% share and expected to grow at a CAGR of 15.8% due to strong outbound travel volume and insurance penetration.
• Canada generated USD 2.3 Billion in 2025, with 23% share, expanding at 15.6% CAGR, driven by cross-border travel and policy bundling.
• Mexico accounted for USD 1.7 Billion in 2025, with 17% share, growing at 15.5% CAGR, supported by increasing tourism and awareness campaigns.

Europe

Europe represents a major hub for annual travel insurance with strong policy adoption across EU nations. Approximately 71% of frequent travelers in Western Europe opt for annual insurance compared to 48% in Eastern Europe. High outbound travel volume, Schengen visa requirements, and growing corporate demand continue to fuel expansion in this region.

Europe accounted for USD 8.55 Billion in 2025, representing 29% of the total market. This region is forecast to expand at a CAGR of 15.5% between 2025 and 2034, supported by regulatory compliance, high business travel frequency, and widespread adoption of digital policy services.

Europe - Major Dominant Countries in the Annual Travel Insurance Market

• Germany led Europe with USD 2.6 Billion in 2025, 30% share, expanding at 15.6% CAGR due to strong outbound tourism and digital penetration.
• United Kingdom accounted for USD 2.2 Billion in 2025, 26% share, growing at 15.5% CAGR with a large number of corporate travelers.
• France generated USD 1.8 Billion in 2025, 21% share, projected at 15.4% CAGR, supported by Schengen-related insurance mandates.

Asia-Pacific

Asia-Pacific is one of the fastest-growing regions in the annual travel insurance market, supported by increasing international tourism and rising disposable incomes. More than 53% of outbound travelers in China purchase annual insurance, while 46% in India and 58% in Japan follow similar patterns. The growing role of online aggregators further boosts demand.

Asia-Pacific accounted for USD 7.37 Billion in 2025, representing 25% of the total market. This region is expected to grow at a CAGR of 15.8% between 2025 and 2034, driven by expanding outbound travel, growing middle-class population, and rising business trips.

Asia-Pacific - Major Dominant Countries in the Annual Travel Insurance Market

• China held USD 2.5 Billion in 2025, 34% share, expanding at 15.9% CAGR due to large outbound traveler base and digital adoption.
• Japan generated USD 2.1 Billion in 2025, 29% share, growing at 15.7% CAGR, driven by corporate travel and digital policy purchases.
• India contributed USD 1.6 Billion in 2025, 22% share, expanding at 15.8% CAGR with rising middle-class outbound travel demand.

Middle East & Africa

The Middle East & Africa region is steadily growing in the annual travel insurance market, supported by rising outbound travel and improving awareness of travel risks. Approximately 42% of outbound travelers in the Middle East adopt annual policies, while Africa records 29% adoption, indicating a strong upward trajectory for this region.

Middle East & Africa accounted for USD 3.54 Billion in 2025, representing 12% of the total market. This region is expected to grow at a CAGR of 15.4% between 2025 and 2034, driven by rising international tourism, corporate packages, and increasing digital sales channels.

Middle East & Africa - Major Dominant Countries in the Annual Travel Insurance Market

• United Arab Emirates led with USD 1.2 Billion in 2025, 34% share, growing at 15.5% CAGR due to high outbound expatriate travel.
• Saudi Arabia accounted for USD 1.0 Billion in 2025, 28% share, expanding at 15.3% CAGR, supported by religious tourism and corporate demand.
• South Africa generated USD 0.8 Billion in 2025, 23% share, growing at 15.2% CAGR, with rising outbound leisure and business travel.

List of Key Annual Travel Insurance Market Companies Profiled

Investment Analysis and Opportunities in Annual Travel Insurance Market

The annual travel insurance Market is witnessing significant investment opportunities due to rising adoption across both developed and emerging regions. More than 62% of investors are prioritizing digital platforms for policy distribution, while 54% are focusing on multi-trip annual plans to target frequent travelers. Approximately 47% of funding is being directed toward mobile-based solutions and claim automation, improving customer satisfaction rates. At the same time, 36% of strategic investments are flowing into cross-border insurance partnerships to capture outbound travel demand. Expansion opportunities also lie in emerging economies, where awareness levels are currently below 28% but projected to grow steadily. With 41% of consumers prioritizing medical coverage, insurers and investors are aligning resources to strengthen offerings in health-related travel protection.

New Products Development

New product development is playing a crucial role in shaping the annual travel insurance Market. Around 53% of new policies launched focus on flexible coverage such as pandemic protection and digital claims management. Nearly 39% of insurers have introduced customizable annual plans that allow travelers to select benefits like baggage, cancellation, and health coverage. Additionally, 44% of new developments are centered on mobile-first platforms, offering instant purchase and claim settlement. Another 28% of innovations focus on bundled services with airlines and travel agents, making insurance purchases seamless. These advancements are reshaping consumer expectations, as more than 49% of younger travelers prefer personalized digital policies compared to traditional ones.

Recent Developments

• Allianz Expansion: Allianz expanded its digital travel insurance platform, with 22% growth in online subscriptions in 2024, supported by app-based policy management and AI-driven claim approvals.
• AXA Digital Partnerships: AXA partnered with global travel booking platforms, integrating policies at checkout, which resulted in 18% higher adoption rates among international travelers in 2024.
• Generali Product Innovation: Generali introduced customizable annual travel insurance in 2024, with 27% of users opting for flexible add-ons like adventure sports coverage and extended trip protection.
• AIG AI-driven Claims: AIG launched an AI-based claim settlement tool in 2024, reducing claim processing time by 34% and improving customer satisfaction among policyholders.
• Tokio Marine Regional Expansion: Tokio Marine entered new Asia-Pacific markets in 2024, achieving 21% policy growth by focusing on outbound student and corporate travel insurance products.

Report Coverage

The report on the annual travel insurance Market provides in-depth insights into market size, segmentation, regional performance, and competitive landscape. It covers historical data, current dynamics, and future growth projections, focusing on changing consumer behavior and distribution trends. The analysis includes segmentation by type, where personal insurance accounted for nearly 62% of market share in 2025, and group insurance held 38%. By application, insurance intermediaries dominated with 34% share, while direct company sales and bank-led channels contributed 27% and 19% respectively. Regional insights highlight North America leading with 34% share, followed by Europe at 29%, Asia-Pacific at 25%, and Middle East & Africa at 12%. The report also profiles major players such as Allianz, AXA, Generali, and AIG, which collectively hold over 40% of market share. Additionally, it highlights emerging opportunities, with 47% of growth potential linked to digital distribution and 36% tied to corporate travel insurance. Consumer trends indicate that 55% of younger travelers prefer digital-first annual policies, while 41% of buyers prioritize health and medical coverage. This comprehensive coverage ensures stakeholders understand market opportunities, key drivers, restraints, and competitive strategies shaping the industry.