Global Business Travel Accident Insurance Market is Segmented By Policy Type (Local Policies Only, One Global Policy, Controlled Master Program (CMP), Others), By Coverage Type (Single-Trip Travel Insurance, Multi-Trip Travel Insurance), By Distribution Channels (Insurance Company, Banks
Insurance Aggregators, Others), By End-User (Corporations, Government Bodies, International Travelers, Others), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029
Market Overview
The Global "Business Travel Accident Insurance Market" is estimated to reach at a high CAGR during the forecast period (2022-2029).
Business Travel Accident (BTA) insurance is a supplemental insurance policy that provides occupational and non-occupational accident and health coverage to employees and their dependent spouses and children when traveling on corporate business. It has significant benefits for many companies, particularly for personnel who travel worldwide regularly on company business.
Several businesses and corporations opt to get BTA insurance to reduce the potential liability when their personnel travel. Accidental death and dismemberment are the fundamental components of BTA insurance; however, medical benefits such as accident and sickness may also be included. Some policies can even be extended to include coverage for employees working on-site (at the office/factory). The company pays premiums, but benefits are paid directly to employees or their beneficiaries.
Source: DataM Intelligence Analysis (2021)
Global Business Travel Accident Insurance Market Dynamics
The inevitability of business travel in today's modern global economy and related uncertainty and threats are expected to drive the market. However, lack of awareness along with complicated terms & conditions is expected to restrain the market.
The inevitability of business travel in today's modern global economy and related uncertainty and threats
Travel has become an absolute necessity in the new global economy. Employees from business corporations are regularly sent on sales calls, business meetings, training sessions and conferences globally. For instance, according to the World Travel and Tourism Council (WTTC), the business travel sector produced 0.7% of global GDP in 2019. Global business travel spending peaked at almost US$ 1,280 million in 2019, having more than doubled from 2000.
However, the global marketplace puts uncertain risks on today's business travelers. The political climate in some regions is unpredictable and presents real concerns and threats for business travelers and their employees. According to aviation consulting firm "To70", 299 people were killed in large commercial airplane accidents in 2020.
Business travel accident insurance is a low-cost, high-value benefit that can be added to any employee benefits package. Employees that travel on business locally or abroad for onshore or offshore assignments are covered by the plan. The insurance is intended to mitigate the risk of losing a key employee(s) and reimburse employees' families for lost income due to a loved one's accidental death or permanent disability.
Lack of awareness along with complicated terms & conditions are expected to restrain the market
Insurance coverage concerns consumers as the agreement papers are very complicated to understand. Further, travel insurance is available from various insurance companies, including tour operators. Therefore, most individuals believe it is best to research ahead of time to compare pricing and insurance coverage, resulting in extensive and tedious tasks.
COVID-19 Impact Analysis
Travel restrictions implemented worldwide due to the coronavirus outbreak brought the travel industry to a halt, wreaking havoc on global business and economics. According to TravelPerk S.L.U., COVID reduced international mobility by 65%, the lowest rate of travel since the debut of the Boeing 707 in 1958, which marked the beginning of the Jet Age.
Organizations and their employees faced several obstacles as they navigated the complexity of the global epidemic and changed their operating models to satisfy local health and safety rules, from business visits being canceled to entire teams suddenly working from home. Employer safety has always been a priority, but the COVID-19 outbreak highlighted the necessity for a thorough risk management plan that meets Duty of Care standards for many firms.
Segment Analysis
Based on policy type, the business travel accident insurance market is segmented into local policies only, one global policy, controlled master program (CMP) and others.
Controlled Master Programs (CMPs) have grown in popularity halfway between having exclusively local policies and having a single worldwide policy. A CMP combines the best of both worlds by providing a more compliant approach to ensuring benefits while retaining a single worldwide coverage standard. CMPs give the parent corporation consolidated authority while benefiting local plans and conditions. In addition, the scheme contains a master policy underwritten in a country and, if necessary, locally admitted plans in each country.
CMPs reduce compliance risks in practice, but they can raise other issues. Understanding policy details and reducing regulatory risk are two critical concerns with CMPs. Differential conditions/differences in limitations (DIC/DIL) language in the master contract may say that the global plan will give coverage above and beyond what the local plans can supply, ensuring that each employee is covered to the specified levels.
Source: DataM Intelligence Analysis (2021)
Geographical Analysis
The business travel accident insurance market is segmented into North America, Europe, South America, Asia-Pacific and Middle East & Africa based on geography.
According to Trondent Development Corp., U.S. makes more than 405 million long-distance business travels each year, indicating approximately 1.1 million people in U.S. travel for business every day. The most popular business travel location is New York City. With 400 million long-distance work journeys in U.S. each year, the earnings from this possibility are substantial, accounting for 28.4% of all travel and tourism revenue.
Moreover, according to "Zurich Canada" a travel insurance company, business travel is expected to increase in the region as health officials and communities gain better control of the coronavirus outbreak. As employees resume traveling for work worldwide, they will be exposed to increased risks such as illness, accidents, natural disasters, terrorism and a host of inconvenience risks.
Therefore, policy companies invest and announce new policies to attract customers and generate revenue in the region. For instance, in October 2020, "Zurich North America" introduced an enhanced business travel accident insurance solution that can help employers protect their employees in a world facing increasingly complex risks, underscored by a year of COVID-19, civil unrest and record-setting wildfires.
Source: DataM Intelligence Analysis (2021)
Competitive Landscape
The business travel accident insurance market is highly competitive with the increasing business travel in a modern global economy, resulting in high investment by multinational and local companies. Major players contributing to the market's growth are Zurich Insurance Group, American International Group, Inc., Tokio Marine Holdings, Inc., Nationwide Mutual Insurance Company, Starr International Company Inc., Assicurazioni Generali S.P.A., Tata AIG General Insurance Company Limited, AWP Australia Pty Ltd., AXA, MetLife Services and Solutions Inc. among others. In addition, the companies are adopting growth strategies such as expansions, acquisitions, product launches and collaborations, contributing to the market growth globally.
Zurich Insurance Group
Overview: Zurich Insurance Group is a global Swiss insurance company headquartered in Zürich, Switzerland. The company is organized into three (3) core business segments, including General Insurance, Global Life and Farmers.
Product Portfolio: Zurich Insurance Group offers customized Business Travel Accident Insurance. Its excellent service and support provide medical, security, safety, general travel information and assistance.
Key Development:
- In October 2020, Zurich Insurance Group expanded its business travel product and services into a complete solution that includes a more extensive international servicing network, more comprehensive insurance coverage and new capabilities to support travelers through technology. It has advisory and assistance services through Cover-More's World Travel Protection brand.
Why Purchase the Report?
- Visualize the composition of the business travel accident insurance market segmentation by policy type, coverage type, distribution channel, end-user and region, highlighting the key commercial assets and players.
- Identify commercial opportunities in the business travel accident insurance market by analyzing trends and co-development deals.
- Excel data sheet with thousands of business travel accident insurance market data points level 4/5 segmentation.
- PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
- Product mapping in excel for the key product of all major market players.
The global business travel accident insurance market report would provide access to an approx. 69 market data table, 64 figures and 180 pages.
Target Audience
- Insurance Companies
- Corporate Businesses
- Government Bodies
- Emerging Companies
- Investment Research Firms
