Corporate Travel Insurance Market Trends

Growth Drivers

• Growing Trend of Government-Mandate Travel Policies – After the pandemic, tourism demand has been growing that led the government of various countries to make travel insurance mandatory. Therefore, this factor is expected to propel the expansion of the corporate travel insurance market. The rules are also applicable for one-day business trips. It was found that the worldwide ratio of one-day-long business trips has increased by nearly 28% in the first half of 2022.
• Rising Number of External Meetings and Events – For instance, in the United States, nearly 39% of traveling has been done to attend external business meetings, and events till the first half of 2022.
• Growing Trend of Online Travel Bookings – For instance, in 2022, travelers in America, have spent nearly 27% more time for booking a trip online than they did in 2019. In Australia, this number jumped by 17%, while in Germany, people now devote around 8% more time to booking a trip via some online platform.
• Escalating Trend of Bleisure into Business Trips – As per a survey, it was found that ‘bleisure’ (business combined with leisure), have initiated by around 80% of business travelers. Whereas, approximately, 40% merge business with pleasure when traveling. Around 35% of people schedule a vacation around a business trip.
• Worldwide Surge in Travel Expenditure – According to the data provided by the World Bank, worldwide tourism expenditure has grown from USD 1.41 trillion in 2018 to USD 1.44 trillion in 2019.

Challenges

• High Cost of Corporate Travel Insurance – as it depends on various factors, such as age, the type of coverage, the total number of travelers, and others. It is estimated that the travel insurance plan cost somewhere between 4% to 10% of the total, non-refundable trip expenses.
• Lack of Awareness About Corporate Travel Insurance Policies
• Hesitation in Corporates to Invest in Travel Insurance for Employees