Consumers Spend $1.72B on Travel Protection in 2020, According to New UStiA Study
In 2020, Americans spent approximately $1.72 billion on all types of travel protection, as conveyed in the recently released 2018–2020 Travel Protection Market Study conducted for the US Travel Insurance Association. This represents a substantial reduction (just over $2 billion) since the prior study from the 2016-2018 period due to the impacts of Covid on leisure travel. Coverage and protection include annual products and per-trip travel protection with benefits ranging from trip cancellation and interruption, lost luggage, emergency medical, medical evacuation, and various other benefits and programs from UStiA member companies.
Approximately 36 million people were protected by more than 24.1 million plans provided by UStiA members in 2020. This also represents a substantial reduction in people covered by travel protection by over 28 million and just over 22 million less plans sold during the 2016-2018 period. Consumers purchased these plans through distribution channels such as travel suppliers, travel agents, travel insurance providers, internet aggregators, and insurance producers.
Trip cancellation/interruption packages remain the most popular choice of plan. Plans that include trip cancellation/interruption benefits account for nearly 88% of the travel protection products purchased in 2020. 47% of trip cancellation claims were COVID-related.
Background The 2018–2020 Travel Protection Market Study was conducted for UStiA by Willis Towers Watson, an independent actuarial and benefits consulting firm. The study was designed to gather market information and disseminate it to UStiA members and the general public. It follows the Travel Insurance Benchmark Survey of 2004 and biannual follow-up surveys conducted in 2006, 2008, 2010, 2012, 2014, 2016, and 2018. Full results of the study are provided to UStiA members who participate in it.
About UStiA UStiA is a nonprofit association of insurance carriers and allied businesses involved in the development, administration, and marketing of travel insurance and assistance services. UStiA promotes fairness, integrity, and a commitment to excellence in the travel insurance industry, with a mission to educate the public on travel insurance while maintaining high industry standards. For more information on UStiA and travel insurance, visit www.ustia.org.
Contact Susan DeCourcey Executive Director, UStiA (240) 332-8803 [email protected]
