THE tourism industry’s recovery is spurring on the growth of the travel insurance market, especially in the Asia-Pacific region, a new report from Research and Markets has revealed.
The market is worth $22.44 billion in 2023 – up from $19.14 billion in 2022 – representing a compound annual growth rate of 17%. According to the Travel Insurance Global Market Report 2023, the momentum is expected to continue at a rate of 16%, with the market on track to hit $40.58 billion in 2027.
Asia-Pacific was the biggest region in the travel insurance market last year, surpassing Europe, North and South America, the Middle East, and Africa.
Additionally, the report showed how the use of advanced technologies, including AI-enabled chatbots for automating the claim settlement, is emerging as a trend in the travel insurance platform.
The analysis, which also demonstrated how factors such as inflation, COVID-19 and the Ukraine-Russia war were affecting the market, can be used by insurance companies to help inform regional strategies, identify growth segments and understand customers based on the latest market shares.
