The travel insurance sector is experiencing rapid growth, according to the latest market report from the United States Travel Insurance Association (UStiA), which shows impressive growth in the sector. According to its analysis, total consumer spending on travel protection in the United States soared to $4.27 billion in 2022, marking a staggering 143.9 percent increase from UStiA's 2020 findings.
Furthermore, the total number of protected persons reached 77.41 million in 2022, significantly higher than the pre-pandemic level of 65.99 million. These numbers are in stark contrast to his 20 years ago, when just 10.7 million people had travel insurance coverage.
As for 2024, certain trends and observations are emerging regarding US consumer attitudes and preferences towards travel insurance.
As spring approaches and travelers head out on new adventures, leading travel insurance comparison site Squaremouth has released its latest research. The company recently surveyed more than 5,000 customers, asking them about their itinerary, mindset, and concerns about upcoming spring travel.
Medical emergencies are a top concern
The majority of respondents (75%) expressed fear of getting sick or injured before or during their trip, highlighting the paramount importance of medical insurance. Of these, 22% cited pre-trip health concerns as their top concern, fearing cancellation due to unforeseen medical issues.
Trip cancellation coverage has emerged as an important safeguard against such events, offering travelers up to 100 percent of their prepaid, non-refundable trip costs in the event of an unexpected health cancellation. Squaremouth recommends purchasing travel insurance early to maximize your coverage. The report states that travelers should, in principle, purchase travel insurance immediately after paying for the initial trip, such as a flight ticket or hotel stay.
Patient and paramedic inside medical emergency evacuation helicopter. (Photo credit: Adobe Stock/thanarak)
Responding to medical emergencies overseas
Many major health insurance plans lack international coverage, looming large out-of-pocket costs for travelers with medical issues abroad. More than half (53%) of survey participants expressed anxiety about experiencing a medical emergency while traveling.
Fortunately, most travel insurance plans offer comprehensive medical benefits, including emergency medical and medical evacuation coverage. This type of protection is designed to reimburse customers for medical expenses that may be incurred at any stage of the trip. Squaremas advises travelers to ensure appropriate coverage, paying a minimum of $50,000 for medical emergencies and $100,000 for medical evacuations, tailored to the chosen destination and itinerary. I am proposing that.
Cancellation compensation is required due to rising travel costs
With the cost of international travel reportedly up 40 per cent compared to last spring, travelers are spending more on vacations and are therefore more concerned about protecting their investments. Squaremouth's research revealed that overall travel spending has increased significantly, with 47% of consumers allocating more funds to travel than in previous spring travels.
Addressing consumer concerns about the possibility of needing to cancel a trip for any reason, SquareMass advocates for comprehensive insurance policies that include trip cancellation, trip interruption, and cancellation for any reason. These safety measures provide peace of mind amidst life's uncertainties, ensuring travelers can confidently handle any disruption.
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