The U.S. travel insurance market is expected to be worth $ 35 billion by 2027, an eight percent increase, according to a research study by Global Market Insights Inc.
Demand for travel insurance is expected to be driven primarily by the growing demand from the tourism industry for “high-risk sports activities” and “adventure tourism”. Participants in these activities are expected to be more likely to take out travel insurance to protect themselves from possible mishaps.
The growth of customizable policies
Global Market Insight also attributes the rise of more customizable policies as a key factor in projected market growth, with interest and awareness in these policies fueled in part by the popularity of travel blogs and social media influencers. .
Policies adapted to activities such as water sports, mountaineering or racing, travel policies longer than average Travel insurance plans adapted to the needs of the elderly, which include greater coverage of health conditions pre-existing and age-related, and offering Helpline Numbers for Large Customers Expandable travel insurance coverage designed to handle disruptions caused by the Covid-19 pandemic.
Other news in travel insurance
Other factors that Global Market Insights points out will contribute to the growth of the region’s tourism industry include:
The growing use of digital tools by insurance providers, including travel insurance distribution platforms that use artificial intelligence (AI), data analysis, geolocation and GPS The easy availability of travel reservations and travel with discounted packages, such as the possibility of online booking platforms to collaborate with insurance providers to offer tailor-made services, international assistance, claims service and travel with discounted packages Government initiatives that guide international tourism, such as laws and regulations that encourage the purchase of travel insurance as a requirement for VISA applications
A reflection of the wider tourism industry
The projected growth also reflects the expansion of the tourism sector in North America, which remains dynamic despite the impact of the coronavirus pandemic.
According to a report by the World Travel and Tourism Council (WTTC) in October, the region’s tourism industry accounted for about $ 2.2 trillion, but later fell to $ 1.25 trillion by 2020, already that international travel stopped.
Despite this, the WTTC says the sector is on track to recover more than a third of that loss this year, with a projected value of $ 1.7 trillion by 2021, a recovery that the WTTC credits to l Successful Launch of Covid Vaccines in the US and Canada, along with relaxed travel restrictions on the continent.
This is expected to continue next year, with a potential year-on-year increase of 26.4% forecast for 2022, which will return the region’s tourism industry to pre-pandemic levels worth 2.2 trillion. dollars.