The report forecasts the global travel insurance market to grow at a CAGR of 11.6% during the period 2016-2020.
The report has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
A trend which is helping to boost market growth is insurance for unconventional expenses. Vacation rentals are popular, especially in the US. Thus, when a tourist opts for vacation rentals, the person gets accommodation in furnished houses, apartments, or resort condominium complexes. Most vacation rentals have standardized cancellation policies (flexible, moderate, and strict), which protect both the guest and host alike and generate little or negligible reimbursements.
According to the report, a key growth driver is the rise in tourism and business related travel. Globally, the travel and tourism industry contributed $7.8 trillion in revenue in 2015. The industry has outgrown other industries such as oil export, food products, or automobiles between 2012 and 2015, which may grow at an estimated 4% during the forecast period. It is predicted that the steady and gradual rise in tourism and business travels worldwide contributed 9.5% to the global GDP in 2015. We estimate that the tourism industry will generate an annual revenue of about $12 trillion in the next 10 years.
Further, the report states that one challenge that could hamper market growth is the variety in healthcare laws in different countries.