Europe Travel Insurance Market to Reach USD 15.0 Billion by 2032

The European travel insurance market is experiencing significant growth, driven by consumer demand for comprehensive coverage. This surge is influenced by the increase in online purchases, the rise in senior travelers, and the impact of the COVID-19 pandemic, which has heightened awareness of the need for extensive travel protection.

In 2023, the market was valued at US$ 2.5 billion and is projected to reach US$ 15.0 billion by 2032, growing 22.1% from 2024 to 2032. The UK's market alone is expected to grow from £468 million to £598 million by 2029, fueled by mandatory insurance for visa applications, increased consumer awareness, and pandemic impacts.

Medical coverage is the most sought-after, accounting for 54.2% of the market in 2023. The majority of the market consists of individual insurance plans (77.0%) and comprehensive travel trip insurance (52.6%). The pandemic has not only increased demand for travel insurance but also accelerated the digital transformation of the market, leading to more interactive and efficient platforms. Governments have enforced regulations making travel insurance mandatory, and partnerships between insurers and travel businesses have become more common.

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

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