Travel insurance market seen topping $108.9 billion by 2035

The global travel insurance market is projected to rise from $27.8 billion in 2025 to $108.89 billion by 2035, driven by more international travel, visa-linked insurance rules and faster digital distribution. The report points to stronger demand for medical, cancellation and evacuation coverage as insurers push embedded sales, AI pricing and automated claims.

Why it matters: - The travel insurance market is moving from an optional add-on to a core part of international trip planning. - The projected jump to $108.89 billion by 2035 signals durable demand across leisure, business and long-stay travel. - More mandatory coverage rules and more frequent overseas travel are expanding the number of buyers. - The shift matters for insurers, travel platforms and consumers because it changes how protection is sold, priced and delivered.

What happened: - Market Research Future said the global travel insurance market was valued at $27.80 billion in 2025. - The market is projected to grow to $32.19 billion in 2026 and reach $108.89 billion by 2035. - The forecast implies a 14.50% compound annual growth rate over the period. - The report covers single-trip, annual multi-trip and long-stay travel insurance. - The release said the market includes coverage for medical emergencies, trip cancellation, baggage loss, travel delays and emergency evacuation. - The report was published in Paris on June 26, 2026.

The details: - The World Health Organization estimates about 1.5 billion people travel internationally each year. - The report says that number is expected to keep rising over the forecast decade. - Rising disposable incomes, budget airline expansion and post-pandemic normalization are supporting demand. - Government visa rules are a major growth driver. - The Schengen Area requires at least EUR 30,000 in medical coverage across 27 European countries. - More than 60 countries now require proof of travel insurance for visa applications. - International tourism revenues moved back above $1 trillion in 2022. - The report says that has expanded the pool of insurable travel events. - Single-trip policies held 58% of revenue in the cover segment. - Family travelers accounted for 60% of market revenue. - Travelers ages 18 to 30 held 60% of demographic demand. - North America held the largest regional share in 2025. - Asia-Pacific is forecast to grow at the fastest regional CAGR. - The report links Asia-Pacific growth to a larger middle class, outbound travel from China and India, and greater awareness of travel risk.

Between the lines: - The market is benefiting from two demand layers at once: rules that force purchases and consumer behavior that increasingly favors broader coverage. - Embedded insurance at airline, hotel, online travel agency and ride-hailing checkout pages is becoming a key distribution advantage. - Parametric products and cancel-for-any-reason options are gaining traction because travelers want faster payouts and more flexibility. - AI is changing both underwriting and claims handling by using destination risk, traveler profile and trip data to set prices and settle simple claims faster. - Telemedicine is helping insurers position travel policies as broader health support products, not just reimbursement contracts. - The report says competitive pressure is rising around embedded partnerships, personalized pricing and automated claims.

What’s next: - More countries in Southeast Asia, the Middle East and Latin America may add visa-linked insurance requirements. - That would expand the mandatory market and create more baseline demand. - Insurers are likely to keep pushing embedded checkout sales and mobile-first policy tools. - AI-driven pricing and claims automation are expected to shorten settlement times and lower processing costs. - Asia-Pacific should remain the fastest-growing region as first-time international travelers enter the market in large numbers. - The report identifies Allianz, AIG, Travel Guard, AXA, Berkshire Hathaway Specialty Insurance, Chubb, InsureandGo, World Nomads Group and Generali Global Assistance as key players.

The bottom line: - Travel insurance is becoming a structurally larger, more digital and more mandatory global market, with regulation and traveler risk awareness doing much of the heavy lifting.