The latest Berkshire Hathaway Travel Protection (BHTP) annual “State of Travel Insurance (SOTI) Report” reveals Gen Z is emerging as the fastest-growing consumer segment, with a 24% increase in travel insurance purchases from 2023 to 2024.
This demographic is traveling more and spending more, averaging over $11,000 per trip in 2024.
The report offers significant insights into the travel insurance market for 2024 and also indicates a shift in travel preferences, with Gen Z travellers increasingly looking to destinations in South Asia and showing a strong preference for concerts and sporting events.
Social media plays a crucial role in travel planning, with 55% citing it as a key factor.
Dean Sivley, President of BHTP, noted, “Gen Z is rapidly becoming the next significant wave of travellers, eager to explore the world and experience different cultures, which comes with the desire to protect their travel investments.”
Additionally, the report identifies Canada, Switzerland, and Norway as the top three safest travel destinations for 2024.
This ranking is based on a combination of survey responses and third-party data sources evaluating safety concerns such as terrorism, weather emergencies, and health measures.
The report emphasises the importance of travel insurance, regardless of destination safety ranking, to protect travellers' investments.
Insurance marketplace Squaremouth.com reported paid claims increased by 18% from 2023 to 2024, according to Travel Weekly. In the past year, payment amounts have grown by 37%, from $1,900 to $2,609.
