U.S. Business Travel Accident Insurance Market, By Type (Single Trip Coverage, Annual Multi-Trip Coverage, and Others), User Type (B2B, B2C, and B2B2C), Distribution Channel (Insurance Company, Bank, Insurance Brokers, Insurance Aggregators, and Others), Coverage (Accidental Medical, Accidental Death, Accidental Dismemberment, Out-Of-Country Medical, Emergency Medical Evacuation, Security Evacuation, and Others), Policy Type (Local Policies, Global Policies, and Controlled Master Program), Business Size (Large Businesses (More Than 500 Employees), Mid-Size Businesses (10 - 500 Employees) and Small Businesses (2 - 10 Employees)), End-User (Corporate, Government, and International Travellers and Employees (EXPATS)) - Industry Trends and Forecast to 2030.
U.S. Business Travel Accident Insurance Market Analysis and Size
Business travel insurance is very useful to organizations that send their employees to different places for business purposes. For the security of employees, different organizations, whether small businesses or large, purchase different policies such as health insurance, travel insurance, and others from the insurance company. In addition, many people go on vacation or holiday once a year to enjoy themselves with family and friends, which is rising the demand for travel insurance in the market.
Data Bridge Market Research analyzes that the U.S. business travel accident insurance market is expected to reach a value of USD 8,487.86 million by 2030, at a CAGR of 17.0% during the forecast period.
2023 to 2030
2021 (Customizable to 2015 – 2020)
Revenue in USD Million
Type (Single Trip Coverage, Annual Multi-Trip Coverage, and Others), User Type (B2B, B2C, and B2B2C), Distribution Channel (Insurance Company, Bank, Insurance Brokers, Insurance Aggregators, and Others), Coverage (Accidental Medical, Accidental Death, Accidental Dismemberment, Out-Of-Country Medical, Emergency Medical Evacuation, Security Evacuation, and Others), Policy Type (Local Policies, Global Policies, and Controlled Master Program), Business Size (Large Businesses (More Than 500 Employees), Mid-Size Businesses (10 - 500 Employees) and Small Businesses (2 - 10 Employees)), End-User (Corporate, Government, and International Travellers and Employees (EXPATS))
Market Players Covered
AXA Partners USA S.A, Travel Insured International, Arch Capital Group Ltd., GENERALI GLOBAL ASSISTANCE, Travelex Insurance Services Inc., VisitorsCoverage Inc, Berkshire Hathaway Specialty Insurance, AGA Service Company, MetLife Services and Solutions, LLC, Chubb, American Express, Tokio Marine HCC, The Hartford, American International Group, Inc., Insubuy, LLC, and International Medical Group, Inc (A Subsidiary of SiriusPoint Ltd.) among others
Every business trip is an investment for any company to grow and expand its business. The company must have employees at the client’s place to understand their processes, operation, and implementation. The perils of this investment can be lost baggage and passports, personal accidents, and even a hospital stay in a strange land. The protection is designed to minimize the risk and potential loss of an employee and compensate their families for their loss of income due to the accidental death or permanent disability of an employee.
U.S. Business Travel Accident Insurance Market Dynamics
This section deals with understanding the market drivers, advantages, opportunities, restraints, and challenges. All of this is discussed in detail below:
- Increase in Demand for Travel Insurance with COVID-19 Coverage
The pandemic has restricted people from traveling from one place to another due to the lockdown. As the lockdown restriction is lifted, people are ready to travel for their business purpose or enjoy vacations. But people are concerned about their health safety, which has raised the demand for COVID-19 coverage in their travel insurance. The companies offer insurance plans with COVID-19 coverage, including a quarantine stipend, travel cancellation if they test positive, medical care, and others to cater to the customers' demands.
- In June, PwC’s COVID-19 Consumer Insurance and Retirement Pulse Survey uncovered that people are moving to have a long-term benefit policy. It was also found that 15% of survey takers say they want to purchase life insurance due to COVID-19, and 37% fear that the pandemic may impact their retirement plan financially.
Increase in Demand for Online Platforms to Purchase Insurance
Last year, staying-at-home customers' preference for online purchases of travel increased tremendously, which has led to the rise in demand for an online platform to buy insurance. Also, the online platform helps them compare different plans while purchasing, and it needs less time without moving physically, so consumer preference has changed to the online channel. To cater to this rising demand for online platforms, companies are either coming up with their website or partnering with different companies to provide their customer with online services.
- Rise in International Trade and Business Expansion Globally
Globalization has increased the integration of the world economy through the rise of international trade. Thus, both consumers and companies can now choose from a broader range of products and services. Also, many companies are expanding their geographical reach by investing in foreign companies and setting up their branches in other countries. They have to travel from one place to another numerous times to expand their business and look into the flow of operations. Many insurance companies are coming up with different plans such as multi-trip travel protection plans to help their clients for necessary coverage. Also, the companies are coming up with a plan which can provide them with complete travel safety.
- Low Consumer Experiences in Terms of Coverages
As most consumers have less experience regarding coverage and benefit they may get, they do not buy travel insurance. Also, due to the high premiums of the insurance, customers mostly do not buy this policy. The lack of awareness about the insurance cost and its coverage benefit has hindered the market growth.
- A study done by Wonderflow shows that the insurance industry struggles with a reputation issue. Customers feel distant from the insurance company as they are often believed to be self-interested and opportunistic. Because of the customer's opinion, nearly 44% of customers have had no interactions with their insurers in the last 18 months. Also, about 40% of the insurance customer are dissatisfied with the company’s services
Lack of Guidance Towards Business Travel Accident Insurance
Most of the people who travel abroad lack guidance about the benefits and coverage provided by the travel insurance company. They often do not even know that travel benefits such as trip cancellation coverage, emergency medical coverage, and many more. People mostly do not purchase insurance policies as they are not aware of the company's benefits, which is expected to restrain market growth.
- Research conducted by BioMed Central Ltd shows that approximately 20–30% of travelers lack awareness about Emergency Medical Assistance Services (EMAS), and the percentage of travelers who have previously received medical assistance through these services is extremely low. Also, it was found that less than 5% of respondents had a previous experience with EMAS
Thus, the lack of guidance and awareness about the benefits of travel insurance plans is expected to restrain market growth
- Rise in Concern Regarding Data
Big Data has become an inherent part of the sector across the globe to provide personalized experiences to the customer. More and more data about every person is being generated faster and faster from different devices. However, the increased data sharing and usage have given rise to cyber-risks about consumers' data privacy. To achieve greater customer loyalty, companies should protect the customers' data and have transparent communication with the customers. But due to the rising demand of consumers to have custom insurance policies, data sharing has increased. While having custom-made police for themselves, customers have to provide their data such as their medical records, personal details, and many more. This information is stored in cloud-based storage, which a hacker can hack, which became a major challenge to market growth.
- Rise in Attractive Features to the Insurance Plan by Companies
Many companies have different ideas to attract more customers and boost the industry after the lockdown. They are adding different features to their existing plan or coming up with new policy plans to attract customers. The companies give the customer access to different benefits such as providing premium amenities while traveling or adding a custom option to the policies.
- In July 2021, American Express announced that their U.S. Platinum and Business Platinum Card Members would have access to even more airport lounges and premium amenities when they travel. This member will be provided with world-class travel and lifestyle services and access to exclusive travel programs, benefits, and offerings. With this, the company is baking their card member to start their return to travel
Rise in Safety Concerns Among the People
The spread of coronavirus has made travelers very concerned about their health, leading to a rise in demand for travel insurance containing medical benefits. To cater to this demand, many companies are coming up with different benefits in their policies that can provide medical protection when in an emergency.
- In July 2021, Generali Global Assistance announced that they have partnered with FootprintID to enhance its Trip Mate Travel Protection Plans. The partnership will allow travelers with Trip Mate protection plans to have access to FootprintID’s Portable Personal Health Records, which allow them to take their medical information with them anywhere. With this, the company will be able to elevate its level of care for its clients
U.S. Business Travel Accident Insurance Market Scope
The U.S. business travel accident insurance market is segmented into seven notable segments based on type, user type, distribution channel, coverage, policy type, business size, and end-user. The growth amongst these segments will help you analyze major growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
- Single Trip Coverage
- Annual Multi-Trip Coverage
On the basis of type, the market is segmented into single trip coverage, annual multi-trip coverage, and others.
On the basis of user type, the market is segmented into B2B, B2C, and B2B2C.
- Insurance Company
- Insurance Brokers
- Insurance Aggregators
On the basis of distribution channel, the market is segmented into insurance company, bank, insurance brokers, insurance aggregators, and others.
- Accidental Death
- Accidental Dismemberment
- Accidental Medical
- Out-Of-Country Medical
- Security Evacuation
- Emergency Medical Evacuation
On the basis of coverage, the market is segmented into accidental medical, accidental death, accidental dismemberment, out-of-country medical, emergency medical evacuation, security evacuation, and others.
- Local Policies
- Global Policies
- Controlled Master Program
On the basis of policy type, the market is segmented into local policies, global policies, and controlled master program.
- Large Businesses (More Than 500 Employees)
- Mid-Size Businesses (10 - 500 Employees)
- Small Businesses (2 - 10 Employees).
On the basis of business size, the market is segmented into large businesses (more than 500 employees), mid-size businesses (10 - 500 employees), and small businesses (2 - 10 employees).
- International Travelers And Employees (EXPATS)
On the basis of end-user, the market is segmented into corporate, government, and international travelers and employees (EXPATS).
Competitive Landscape and U.S. Business Travel Accident Insurance Market Share Analysis
The U.S. business travel accident insurance market competitive landscape provides details of competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, Asia-Pacific presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, and application dominance. The above data points provided are only related to the companies’ focus on the market.
Some of the major players operating in the U.S. business travel accident insurance market are AXA Partners USA S.A, Travel Insured International, Arch Capital Group Ltd., GENERALI GLOBAL ASSISTANCE, Travelex Insurance Services Inc., VisitorsCoverage Inc, Berkshire Hathaway Specialty Insurance, AGA Service Company, MetLife Services and Solutions, LLC, Chubb, American Express, Tokio Marine HCC, The Hartford, American International Group, Inc., Insubuy, LLC, and International Medical Group, Inc (A Subsidiary of SiriusPoint Ltd.) among others.