NEW YORK, Dec. 7, 2017 /PRNewswire/ — Since 2012, travel insurance has been growing consistently at more than ten percent (10%) per year*, with recent activity driving even more interest, according to TravelInsurance.com. For 2018, Stan Sandberg, co-founder of TravelInsurance.com, predicts similar growth, bringing the overall U.S. travel insurance market to nearly $3.5 billion. The three broad trends fueling this growth will be global travel disruptions, favorable traveler demographics and the continued shift in how individuals shop for travel.
“The travel insurance industry is entering a period of high growth set by a confluence of factors, which together shift the way travelers view the need to protect their trip investments, driving many first-time travel insurance buyers into the market,” said Sandberg. “TravelInsurance.com is at the nexus of these trends, offering customers one of the easiest and most transparent self-service comparison sites in the industry.”
The following are key predictions for 2018 as to what will drive this expected increase:
Global Travel Disruptions:
Mother Nature may continue to wreak havoc: The Atlantic Hurricane season in 2017 was one of the worst in recent years, causing devastation across the Southeast U.S. and Caribbean. Between hurricanes and other natural disasters, there is no shortage of events that can directly impact one’s travel plans. Threat of terrorism will continue to impact travel: Unfortunately, over the past decade, terror attacks have moved beyond the borders of countries in conflict. In recent years, we’ve seen terror attacks occur in some of the most popular tourist destinations, including Paris, London, Barcelona, Nice and Istanbul. Most travel insurance plans with trip cancellation offer coverage for terrorist attacks in the city on a traveler’s itinerary. Since it’s unlikely that terror attacks will deter the intrepid traveler, travel insurance can offer trip protection in the event one’s travel plans are affected by future attacks.
“The reality of global travel today is different from the glamour of past generations–with issues like long security lines, airline breakdowns and computer glitches becoming the norm,” said Sandberg. “On top of these inconveniences, today’s traveler also has to contend with major travel disruptions, such as severe weather and terrorist attacks, that can disrupt a trip even before it starts. While impossible to predict, the trend lines suggest that 2018 will bring more of the same.”
Boomer travel will continue to increase, leading to greater purchases of travel insurance.