The worldwide Medical Travel Insurance Market is experiencing unprecedented growth in 2025, driven by rising international travel, heightened awareness of health risks, and tailored insurance products for diverse travelers. The industry is predicted to reach USD 63.98 billion by 2030, with a CAGR of 13.2%. From Indian millennials exploring Thailand to seniors visiting the U.S., travelers are prioritizing financial protection against medical emergencies and trip disruptions.

This blog explores the key trends, consumer behaviors, and innovations shaping this dynamic market.

What’s Driving the Surge in Medical Travel Insurance Demand?

International travel is surging, and with it, the need for medical travel insurance. Unlike domestic health plans, which often do not cover international medical expenses, travel insurance fills a critical gap.

Here’s why demand is soaring:

• Rising Global Travel: In 2024, 2.1 million Indians visited Thailand alone, boosted by media like The White Lotus Season 2, which led to an 88% spike in searches for Koh Samui.
• Limited Domestic Coverage: Most U.S. health plans do not cover international medical emergencies, leaving travelers liable for hefty bills.
• Financial Caution: In India, 99.48% of ACKO’s travel insurance customers opted for medical coverage, with 83% choosing comprehensive plans for baggage loss, delays, and cancellations.

The medical travel insurance market is growing due to increased global travel, limited domestic health coverage, and travelers’ focus on financial security.

Key Points:

• • Global travel spikes, like Thailand’s 2.1 million Indian visitors, drive insurance demand.
  • U.S. health plans often exclude international coverage, necessitating travel insurance.
  • Indian travelers prioritize comprehensive plans for medical and trip-related risks.

Who’s Buying Medical Travel Insurance in 2025?

Travelers are diverse, but certain demographics stand out in the medical travel insurance market. Millennials, seniors, and women are leading the charge, each with unique needs.

Millennials and Gen Z: The New Wave of Insured Travelers

Young, digitally-savvy travelers are reshaping the market. In India, Millennials and older Gen Zs make up 48% of international travelers, opting for longer, purpose-driven trips. They prioritize comprehensive coverage for medical emergencies and trip disruptions.

Seniors: Tailored Coverage for Pre-Existing Conditions

Seniors, particularly those visiting the U.S., are a growing segment. Visitor Guard® expanded its plans in 2025 to cover acute onset of pre-existing conditions, with policies like Safe Travels USA Comprehensive offering up to $35,000 for ages 70–79 and $20,000 for those over 79.

Women: Closing the Gender Gap

Women now account for 43% of Indian international travelers, many traveling solo or leading family trips, reflecting greater independence. Their demand for customizable insurance is rising.

Millennials, seniors, and women are key drivers of the medical travel insurance market, each seeking tailored coverage for their unique travel needs.

Key Points:

• • Millennials and Gen Z (48% of Indian travelers) prioritize comprehensive plans.
  • Seniors benefit from enhanced coverage for pre-existing conditions.
  • Women, at 43% of Indian travelers, drive demand for flexible insurance options.

What Types of Coverage Are Travelers Prioritizing?

Travelers are seeking policies that address specific risks, from medical emergencies to adventure activities. Here’s a breakdown of popular coverage types:

Travelers prioritize medical, cancellation, and adventure coverage, with seniors focusing on pre-existing condition plans and younger travelers seeking comprehensive policies.

How Are Insurers Innovating to Meet Traveler Needs?

Insurers are adapting to traveler demands with flexible, customizable products. Key innovations include:

• Customizable Policies: OneBefore and Pulse Insurance launched Travel Well, allowing policyholders to adjust cancellation limits or focus on emergency medical coverage.
• Senior-Focused Plans: Visitor Guard®’s Safe Travels USA Comprehensive and Venbrook plans cover acute onset of pre-existing conditions, tailored for seniors.
• Adventure Add-Ons: Thailand’s rise as an adventure hub has led to policies covering activities like surfing and motorcycle riding.

Insurers are innovating with customizable policies, senior-focused plans, and adventure coverage to meet diverse traveler needs.

Key Points:

• • Travel Well offers flexible cancellation and medical coverage options.
  • Senior plans address pre-existing conditions with higher limits.
  • Adventure add-ons cater to thrill-seekers in destinations like Thailand.

Why Is Thailand a Hotspot for Travel Insurance Demand?

Thailand’s tourism boom, fueled by The White Lotus, has made it a focal point for travel insurance.

Key factors include:

• Tourism Surge: 2.1 million Indian visitors in 2024, with a projected 12% increase in 2025.
• Extended Stays: Average stays increased by 66%, for a max. 15 days, driving demand for comprehensive coverage.
• Adventure and Medical Needs: Travelers seek add-ons for adventure activities and medical coverage for costly treatments.

Thailand’s tourism boom and longer stays are increasing demand for medical and adventure-focused travel insurance.

Final Note:

The medical travel insurance market is thriving in 2025, driven by global travel trends and innovative products. By choosing a plan tailored to your needs, you can travel with confidence and security.

About the Author

Sneha Chakraborty is a seasoned SEO Executive and Content Writer with over 4 years of experience in the digital marketing space, bringing a strong command of online visibility strategies and a keen insight into the evolving digital landscape. She specializes in enhancing online visibility and user engagement through data-driven strategies and creative content solutions. Sneha is passionate about translating complex digital concepts into accessible content for a wide audience. Outside of work, she enjoys reading, sketching, and exploring the outdoors through nature photography. The author can be reached at [email protected].