Europe Travel Insurance Market to Reach USD 15.0 Billion By 2032: Exclusive Report by Astute Analytica

The European travel insurance market is dominated by comprehensive coverage, driven by informed consumers seeking extensive protection. The rise in online purchasing, senior travelers, and the pandemic’s impact have solidified the demand for all-inclusive policies that cater to diverse traveler needs.

New Delhi, May 23, 2024 (GLOBE NEWSWIRE) — The Europe travel insurance market is experiencing robust growth, with a valuation of US$ 2.5 billion in 2023, projected to soar to US$ 15.0 billion by 2032, at a CAGR of 22.1% from 2024 to 2032.

Consumer behavior in Europe indicates a strong preference for travel insurance, with 77% of Brits having purchased it in the past and 48% consistently doing so for trips abroad. In line with this, the UK market alone is expected to grow from £468 million to £598 million by 2029. This growth is fueled by a combination of factors, including mandatory insurance regulations for visa applications, increased consumer awareness, and the impact of the COVID-19 pandemic, which has underscored the importance of travel insurance.

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Medical cover is the most sought-after, accounting for 54.2% of the travel insurance market in 2023. The majority of the market is dominated by individual insurance plans (77.0%) and comprehensive travel trip insurance (52.6%).

The pandemic has not only heightened the demand for travel insurance but also accelerated the Travel market’s digital transformation, leading to more interactive and efficient digital platforms. European governments have played a significant role in this demand by enforcing regulations that make travel insurance mandatory for travelers. Additionally, partnerships between insurers and travel-related businesses have become more common, offering insurance at the point of booking.

In terms of claims, UK travel insurers paid out £352 million in 2022, with the average claim reaching £973, the highest since 2004. The most common claims were for trip cancellations and lost belongings. Customer satisfaction is at an all-time high, with 87% of policyholders satisfied with their coverage.

The Europe travel insurance market is competitive, with major players like Zurich, Allianz, and AXA leading the way. The insurance intermediaries’ sector is particularly dominant. Coverage typically includes emergency medical expenses, trip interruptions, cancellations, lost baggage, and more, with policies costing between 4% to 8% of the total trip cost. While travel insurance is deemed valuable for managing travel risks, especially for longer and nonrefundable trips, it may be less necessary for shorter, inexpensive, or fully refundable trips.

Key Findings in Europe Travel Insurance Market

Market Forecast (2032) US$ 15.0 Billion
CAGR 22.1%
By Risk Coverage Medical Cover (54.2%)
By Trip Type   Comprehensive Travel Trip (52.6%)
By Type Individual Insurance (77.0%)
By Destination Domestic (57.2%)
By Distribution Channel Insurance Aggregators (53.3%)
By End Users Travelers (81.5%)
Top Trends
  • Rise in online travel insurance purchasing
  • Increased demand from senior and adventure travelers
Top Drivers
  • Heightened consumer awareness and education about travel insurance
  • Positive impact of COVID-19 pandemic on travel insurance
  • Schengen visa insurance mandates
Top Challenges
  • Adapting to evolving consumer behavior
  • Data security and privacy concerns

Digital Innovations and Partnerships in Europe Travel Insurance Market

The market is adapting to new technologies, with a shift towards digital platforms and products. Partnerships between insurance providers and travel-related businesses are becoming more common, such as Chubb’s partnership with Royal Brunei Airlines and AXA Partners’ collaboration with These partnerships often include comprehensive coverage options, catering to the evolving needs of travelers.

The Symbiotic Relationship: Tourism Drives Europe’s Travel Insurance Market

The symbiotic relationship between tourism and the travel insurance market in Europe is evident through the substantial economic contributions and growth patterns observed in recent years. Tourism stands as a pivotal economic pillar for Europe, having generated a staggering USD 1,920 billion for the continent’s GDP in 2023. This economic influx is not just a testament to the continent’s allure but also a driver for ancillary markets, including travel insurance. Europe’s status as the world’s premier travel destination, drawing in over 50% of all global international visitors, has a direct and profound impact on the demand for travel insurance products.

Countries like Germany and France, which are among the top destinations within Europe, have seen their markets flourish in tandem with their tourism sectors. Germany’s travel insurance market is on a trajectory to more than triple by 2030. Similarly, France is witnessing a steady climb in its travel insurance premiums. These figures underscore the correlation between the influx of tourists and the heightened need for travel insurance, as travelers seek to safeguard their trips against uncertainties.

The consumer behavior within the European travel market further reinforces the demand for travel insurance. A significant number of European travelers are proactively securing travel insurance to mitigate common travel-related risks such as airline cancellations, luggage loss, and medical emergencies. The preference for single-trip insurance coverage, which captured the largest revenue share at 60.1% in 2023, reflects the demand among occasional travelers who may not travel frequently but still recognize the importance of insurance for specific trips.

The Preeminence of Medical Coverage in European Travel Insurance Market Captures Over 54.2% Market Share

In the landscape of European travel insurance, medical coverage has emerged as the predominant force, accounting for a substantial 54.2% of the market in 2023. This segment’s dominance is largely attributable to the inadequacy of domestic health insurance policies outside national borders, necessitating a specialized travel medical insurance to bridge the gap. Such insurance is crucial, as medical emergencies can arise suddenly, and the associated costs can be staggering, potentially derailing one’s travel budget. Unlike standard health insurance, travel medical insurance is tailored to address the risks and challenges faced when traveling.

The Schengen Area’s visa requirements further underscore the importance of this insurance type in Europe travel insurance market. For stays beyond 90 days, travelers must possess travel medical insurance that meets certain criteria, ensuring they are covered for emergencies. The cost of travel insurance for Europe hovers around $359 on average, with a range of $40 to $80 for most policies, making it a relatively affordable safeguard. Stand-alone medical policies average $92.75 per trip, with the price influenced by various factors such as age, trip length, destination, and coverage extent.

The necessity of medical coverage is further illustrated by real-world costs; for instance, a traveler without evacuation insurance incurred a $70,000 bill to return from Spain to the U.S. Such examples highlight the financial risks of traveling without adequate coverage. With European vacation costs increasing by 30% from 2022 to 2024, and countries like the UK, Germany, and France contributing significantly to tourist numbers in destinations like Spain, the value of comprehensive travel medical insurance becomes indisputable. It’s not just a matter of compliance with visa regulations but a critical investment in one’s well-being while exploring the world.

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Comprehensive Coverage is the Undisputed Champion of European Travel Insurance Market with Over 52.6% Market Share

In the dynamic landscape of European travel, comprehensive travel insurance has emerged as the dominant choice among consumers, a trend underscored by compelling statistics and market behavior. A paramount concern for 85% of European travelers is health and safety, a priority that comprehensive insurance addresses by offering extensive medical coverage, a necessity given that medical costs abroad can be triple those at home, according to the World Health Organization. The robustness of comprehensive plans is further justified as trip cancellation, which forms up to 40% of insurance claims, and the protection against the mishandling of 24.1 million bags globally, are covered under such policies.

The surge in consumer education has also played a pivotal role in the growth f the travel insurance market, with 72% of travelers now more informed about insurance than five years ago. This awareness, coupled with the influence of government travel advisories, which affect 60% of travelers’ insurance purchasing decisions, and Schengen visa insurance mandates, has led to a more discerning clientele. The convenience of online purchasing, with 65% of insurance now bought through digital channels, has made comprehensive coverage more accessible and customizable, as seen with insurers like AXA.

  • Rise of Adventure Tourism and Post Pandemic Awareness Spur Insurance Demand

The rise in adventure tourism, with 30% of European travelers participating in such activities, and the projected growth in business travel, further fuel the demand for comprehensive plans. Notably, the senior traveler segment, which heavily favors comprehensive insurance for enhanced health and trip cancellation coverage, has seen a 70% preference rate. Frequent travelers are also contributing to the trend, with a 20% increase in multi-trip policy sales.

The COVID-19 pandemic’s impact on travel has only solidified the position of comprehensive insurance in the Europe’s travel insurance market, as travelers seek protection against health risks and trip interruptions due to quarantine measures. Trust in comprehensive coverage is high, with 80% of consumers favoring trusted brands, and insurers like Allianz and Generali expanding their offerings to meet this demand. The inclusion of 24/7 assistance services, valued by 75% of travelers, and the 25% increase in uptake of family travel policies, underscore the all-encompassing appeal of comprehensive plans. Influential travel agents recommend these policies to over half of their clients, leading to a 10% higher customer satisfaction and retention rate for insurers.

Europe Travel Insurance Market Key Players

  • Allianz Travel
  • AXA SA
  • Tata AIG
  • SocGen
  • American Express Company
  • American International Group
  • Atlas International
  • Berkshire Hathway Travel
  • CSA Travel Protection (Generali Global Assistance)
  • FWD Group Limited
  • Generali
  • Hanse Merkur
  • Other Prominent Players

Key Segmentation:

By Medical Cover 

  • Emergency Accidental Treatment & Evacuation
  • Emergency Medical Treatment & Evacuation
  • Personal Accident
  • Daily Cash Allowance
  • Accidental Death & Disability
  • Emergency Dental Treatment

By Risk Coverage

  • Smooth Transit Covers
    • Trip Cancellations
    • Common Carrier Delay
    • Delay of Checked-In Baggage
  • Flexible Trip
    • Loss of Passport
    • Emergency Cash
    • Emergency Trip Extension
    • Trip Abandonment
    • Personal Liability & Bail Bond
  • Others

By Trip Type

  • Comprehensive Travel
  • Student Travel
  • Leisure Travel

By Type

  • Individual Insurance
  • Group Insurance
  • Single Trip Insurance
  • Multi Trip Insurance

By Destination

  • International
  • Domestic

By Distribution Channel

  • Insurance Intermediaries
  • Insurance Companies
  • Banks
  • Insurance Brokers
  • Insurance Aggregators

By End User

  • Students
  • Travelers
    • Travel Bloggers
    • Tourist Guides
    • Family Travelers
    • Business Travelers
    • Group Travelers
  • Senior Citizens
  • Others

By Country 

  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Netherlands
  • Hungary
  • Switzerland
  • Russia
  • Poland
  • Austria
  • Slovakia
  • Czech Republic
  • Croatia
  • Slovenia
  • Romania
  • Bulgaria
  • Rest of Europe

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About Astute Analytica

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