Travel Insurance Barometer 2025: Where Does Canada Stand Compared to the World?
In 2025, the global travel insurance market is experiencing a phase of sustained expansion, driven by an increase in penetration on an international scale. In Canada, the sector shows solid dynamics: nearly $820 million CAD in expected premiums, a 46% increase in the subscription rate among travelers, and a marked enthusiasm for digital and flexible solutions. This evolution is accelerating after the pandemic, stimulated by the resumption of travel abroad, new health requirements and the arrival of innovations such as medical teleconsultation and "climate risk" coverage. In this context, our barometer highlights Canada's solid position on the international scene, while revealing specific challenges in terms of health coverage, digitization and personalization of guarantees.
The Travel Insurance Market in 2025: Overview and Key Figures in Canada and Worldwide
The penetration rate of travel insurance remains a revealing indicator of the market's maturity level and travelers' confidence in the risks associated with international travel. In Canada, there has been tangible progress over the last decade, accentuated by health crises and the rapid evolution of the digital offering. Comparing these rates with major global economies highlights the transition of the Canadian market and the levers for acceleration envisaged by 2030.
Proportion of insured international travels by country in 2025
In 2025, the penetration rate of travel insurance will reach 46% among Canadian travelers, an increase of 38% compared to 2015, but still lower than that of some benchmark European markets such as Sweden (88%) or the United Kingdom (78%). This growth in Canada is due to increased awareness of medical issues abroad, especially in the United States, the generalization of digital purchasing (67% of contracts signed online), and recent awareness campaigns. However, the gap with France (52%) and the Scandinavian countries reflects a potential for catching up through better personalization of the offer, the development of partnerships and the integration of innovative functionalities (teleconsultation, "climate risk"). By 2030, analysts anticipate a penetration rate of around 52% for Canada, gradually converging towards the European average, in a context where travelers demand more flexibility and cutting-edge digital services.
Acceleration of the travel insurance market in post-COVID Canada
In Canada, the post-COVID period has marked an unprecedented acceleration in the travel insurance market. As early as 2023, the volume of international travel reached 92% of its pre-pandemic level, with a full recovery expected in 2025. This recovery is accompanied by a noticeable increase in subscriptions: the rate of insured travelers increased from 31% in 2020 to 46% in 2025, an increase of +15 points in just five years. This dynamic is explained by an increased awareness of health risks, the massive adoption of digital technology, and the development of new formulas: medical teleconsultation, all-cause cancellation, or even “climate” guarantees. Professionals anticipate that this trend will continue until 2030, consolidating the place of travel insurance at the center of new expectations in terms of mobility and security for Canadians.
Purchasing Travel Insurance: Premiums and Modalities
The average premium per traveler is a key indicator for comparing the structure and added value of travel insurance across major markets in the sector. In Canada, this amount illustrates both the coverage requirements (especially medical) and the influence of the destinations mostly covered, such as the United States. Positioning Canada within the international landscape puts its competitiveness and particularities into perspective.
Average travel insurance premiums by country in 2025 (in Canadian dollars, applies for annual multi-travel policies)
In 2025, the average premium per Canadian traveler is $CA 210 for an annual multi-trip policy and $CA 85 for a short single trip. This level is higher than most European markets, but lower than the average American premium, largely driven by medical coverage and the frequency of travel to the United States (41% of Canadian policies). The structure of Canadian offers favors high protection: standard medical ceilings of $CA 5 million, generous cancellation coverage, and constant innovation (teleconsultation, cancel for any reason).
This pricing also reflects the country's geographic diversity and the variability of risk depending on the profiles: seniors, families, employees. While competition favors a moderation of increases, global inflation on care and the increasing sophistication of products should keep the Canadian premium above the world average until 2030. For Canadian insurers, the challenge remains to arbitrate between accessibility, performance, and upscaling in the face of increasingly demanding and segmented travelers.
Only 46% of Travel Insurance Policies are Purchased Directly
The distribution between travel insurance purchased "packaged" with a flight or package and insurance purchased directly is indicative of the maturity of the Canadian market as well as the consumer preferences of travelers. This purchase structure influences personalization, price transparency, and the level of advice given to policyholders.
| Subscription channel | Share of policies (2025) |
|---|---|
| Packaged (via agencies, airlines, OTAs) | 54 % |
| Direct subscription (insurer, bank, broker) | 46 % |
Sources: Soumissions Assurances, Croix Bleue, Desjardins, Statistics Canada, 2025 data.
In Canada, more than half of travel insurance policies (54%) are now purchased in a "packaged" manner, when buying a flight, package, or via a booking platform. This proportion — up nearly 10 points since 2019 — reflects the digital shift: integrated insurance meets the need for immediacy and simplicity, driven by the growth of platforms (Expedia, Air Canada, OTA). Direct subscription, which still accounts for 46%, appeals to those looking for active comparison, customized formulas, or human support. In comparison, France has between 54 and 60% packaged subscriptions and the United Kingdom between 60 and 65%, illustrating the globalization of the "one click insurance" reflex in travel.
In Canada, 67% of travel insurance policies are purchased online
The proportion of travel insurance subscriptions made online in Canada illustrates the rapid digital transition of the market and the growing preference for seamless, personalized, and instant journeys. This shift is shaping access to insurance, customer advice, and competition, and places Canada at the heart of global insurtech issues.
| Country | % of policies purchased online (2025) |
|---|---|
| Canada | 67% |
| France | 62% |
| United States | 59% |
| Australia | 61% |
| Global Average | 58% |
In Canada, 67% of travel insurance policies are purchased online in 2025 — a dramatic increase from 48% in 2019. This trend is driven by the rise of comparison websites (HelloSafe, Rates.ca, SoumissionsAssurances.ca), bank aggregation tools, and increasing integration with OTAs and airlines. It is also accelerated by the accelerated digitization of the sector since the pandemic, with the massive adoption of mobile solutions, AI for customer service, and instant claims management. Compared to France or Australia, Canada is digitally ahead, expected to exceed 75–80% of digital subscriptions by 2030 according to projections. For Canadian players, the challenge will now be to maintain a seamless customer experience — personalized advice, omnichannel management — while anticipating the diversification of needs, especially for senior travelers, families, and business profiles.
Travel Insurance Claims in Canada: Frequency, Types, and Credit Card Coverage
In Canada, the average amount of claims reported in travel insurance varies significantly depending on the nature of the claim, reflecting differences in risk exposure and the diversity of covered events. Analyzing the average amounts by type allows us to anticipate pricing trends and assess the relevance of coverage limits.
| Type of claim | Average amount (2025) |
|---|---|
| Cancellation | CA$1,250 |
| Baggage | CA$480 |
| Medical expenses | CA$2,900 |
| Repatriation | CA$12,000 |
The structure of compensation in Canada highlights the importance of medical and repatriation claims: the average of CA$2,900 for medical expenses and CA$12,000 for repatriation exceeds the standards observed in Europe, confirming the vigilance of Canadian insurers in the face of North American exposure. "Cancellation" guarantees are positioned at a level consistent with the average value of organized trips departing from the country, while "baggage" claims remain, by nature, much less expensive. By 2030, the potential increase in international medical costs, combined with geopolitical volatility, should increase the pressure on average claim amounts, pushing the CA market towards more modular offers and ceilings revised regularly according to destination areas.
In Canada, 38% of travel insurance claims are related with cancellation
The frequency of travel insurance claims and the associated average amounts in Canada are essential indicators for understanding the risk exposure of travelers and the economic balance for insurers. Analysis of different categories of claims reveals marked trends depending on the specificities of the destination, the maturity of the market, and the expectations of Canadian customers.
| Type of claim | Frequency (% polices) | Average amount ($CA) | Claims share (%) |
|---|---|---|---|
| Trip cancellation | 2.1 % | 1 250 | 38 % |
| Lost or damaged luggage | 1.3 % | 480 | 21 % |
| Medical expenses | 3.8 % | 2 900 | 36 % |
| Repatriation | 0.2 % | 12 000 | 5 % |
Sources: Statistics Canada, OSFI, Insurance Submissions, L’Assurance en Mouvement, HelloSafe data
In Canada, it is observed that the frequency of medical claims remains the highest (3.8%), consistent with the high proportion of policies intended for stays in the United States, where the cost of care is very high. Nearly 38% of claims relate to trip cancellation, reflecting the post-pandemic cyclical volatility and growing expectations for flexibility. Baggage-related claims come in third, affecting more than 1% of cases but generally only resulting in modest amounts.
Finally, repatriation remains rare (0.2%) but represents very high unit costs, often due to serious situations involving specialized medical devices. Compared to France or the United Kingdom, the structure of claims in Canada reflects an increased sensitivity to medical risks and significant use of cancellation coverage, while in Europe the proportion of "baggage" claims is higher and medical amounts are generally lower. By 2030, persistent medical inflation and the evolution of offers towards "flexible" or "climate" guarantees should continue to increase the average cost of claims, making prevention and clarity of guarantees more strategic than ever.
Less than a third of insurance claims are filed via credit card
Travel insurance integrated with credit cards occupies a special place in Canada, both for its rapid democratization and its direct impact on the claims market. This segment mainly attracts occasional travelers, seduced by the ease of access, but sometimes confronted with limitations of guarantees that impact claims management.
| Indicator | Credit Card (%) | Dedicated Policy (%) |
|---|---|---|
| Market Share (Subscriptions, 2025) | 29 % | 71 % |
| Share of Reported Claims (2025) | 32 % | 68 % |
Sources: Statistics Canada, Tourdumondiste, SoumissionsAssurances, HelloSafe data
In Canada, nearly 29% of travel insurance policies are purchased through credit cards in 2025; this proportion rises to 32% of claims actually filed. This slight overrepresentation of claims compared to market share suggests that the limitations of automatic coverage (low limits, medical exclusions, restricted destinations) regularly surprise policyholders. For comparison, the credit card market share in CA remains lower than that observed in France (34%) or Germany (31%), but higher than Australia (22%). Claims, however, sometimes struggle to result in full compensation, especially for major medical expenses or long-term trips. By 2030, the gap between credit cards and dedicated policies could widen, driven by evolving needs and the innovation of premium direct-to-consumer digital subscription offers, placing education on guarantees at the heart of customer satisfaction.
Types of Travel Insurance, Destinations, and Preferred Profiles in Canada
The travel insurance landscape in Canada reveals a specific combination of offers, purchasing behaviors, and customer profiles. This diversity reflects both the demands of the North American market, the risk structure (particularly medical), and a strong sensitivity to international trends.
Most Popular Coverages in Canada in 2025
There are many coverage possibilities when it comes to travel insurance. Here are the typical characteristics of the travel insurance policies most purchased by Canadian travelers:
- Medical: typical limit of CA$5M; average deductible of CA$100–250.
- Trip cancellation: maximum compensation amount of CA$5,000 / traveler (sometimes up to CA$10,000 for premium multi-trip plans).
- Baggage: limit of CA$1,500 per insured; frequent exclusions on valuables and electronics.
- Civil liability: often a limit of CA$1M.
- Telephone assistance and telemedicine: present in 68% of policies in Canada.
- Flight delay and compensation: generally CA$500–1,000.
- Additional coverage: "cancel for any reason" (increased adoption post-COVID), climate risks, high-risk sports.
Examples of contracts: Blue Cross, Manulife, Desjardins, Allianz Global, SoumissionsAssurances.
What are the preferred types of travel insurance in Canada?
In Canada, the choice of travel insurance format reflects a fairly balanced distribution among the three main types of coverage: credit card insurance, annual policies, and "single trip" policies. This mix caters to the diversity of traveler profiles, from regular globetrotters to families who travel occasionally.
Types of insurance preferred by Canadian travelers by market share in 2025
Source: Statistics Canada, Tourdumondiste, SoumissionsAssurances
This breakdown indicates a relative maturity of the Canadian market, where the added value of each format is well identified by consumers. Credit card insurance is particularly attractive to occasional travelers and young professionals, drawn to the simplicity and "all-inclusive" nature of banks. However, this segment remains below France (41%) but higher than Australia (22%). Annual multi-trip policies, driven by the population of frequent travelers (business, retirees, digital nomads), are showing steady progress; they offer a very favorable value for money for more than 2 trips per year. However, the "single trip" policy retains first place, driven by the occasional influx of families and tourists to the United States, Europe, or Mexico. This distribution should remain stable until 2030, even if digitalization and the integration of insurance into other purchasing paths could strengthen the market share of packaged and annual products.
What Types of Profiles Are Most Covered by Travel Insurance in Canada?
In Canada, demographic shifts, travel frequency, and family structure shape the profiles most covered by travel insurance. Certain groups receive particular attention from insurers, reflecting their specific needs and the associated risk level.
Main Insured Profiles for 2025 in Travel Insurance in Canada
Sources: Statistics Canada, Tourdumondiste, SoumissionsAssurances
The analysis of the data presented above highlights the importance of seniors in the portfolio of Canadian insurers: they represent 27% of subscriptions, a proportion significantly higher than the global average (18–21%). This over-representation is explained by the fear of high medical costs abroad and a stronger propensity for medium/long-term travel. Families are the second strategic segment, driven by the growth of multigenerational travel and the desire to protect children and parents against unforeseen events.
Frequent business travelers, who represent 18% of travel insurance policies purchased in Canada, benefit from flexible annual offers and enhanced guarantees (cancellation for any reason, teleconsultation). Finally, digital nomads are emerging as a segment of the future, although marginal today, but expected to grow by 2030: Canada is thus positioned among the markets most attentive to the diversity of profiles, like the United States or Australia. This segmentation will drive the personalization of the offer and innovation in the years to come.
What are the most insured destinations for Canadian travellers?
The most insured destinations from Canada reveal both geographical proximity, travel habits, and the specific concerns of travelers regarding financial or health risks. Travel insurance primarily focuses on regions where the cost of healthcare is high or where administrative requirements are strengthened, such as:
| Geographical area | % of travel insurance policies subscribed from Canada |
|---|---|
| USA | 41% |
| Mexico | 13% |
| Europe | 20% |
| Asia | 7% |
Sources: Statistics Canada, Government of Canada, Tourdumondiste
The analysis confirms the supremacy of the United States, which accounts for the largest share of insurance contracts taken out from Canada: this is largely due to the prohibitive cost of medical care and a high volume of cross-border travel. Mexico comes in second: its popularity with Canadian snowbirds and vacationers is accompanied by a strong demand for insurance, especially in winter. Europe, including business and leisure travel, benefits from a stable share, with particular attention to Schengen visa requirements and medical coverage. Note the gradual rise of Asia, linked to the growing interest in East and Southeast Asia.
The Structure of Travel Insurance: Offers, Pricing, and Market Fragmentation
The landscape of travel insurance offerings in Canada highlights a dynamic market, characterized by the presence of major groups, the arrival of innovative insurtechs, and increasing integration with travel platforms. The analysis below sheds light on the main players, the competitive structure, and the evolution of products.
What are the top 5 travel insurance providers in Canada?
The Canadian market is dominated by a few major groups, with a balance between strong local players (Blue Cross, Desjardins) and international insurers (Allianz). Each develops a differentiated strategy: senior specialization, digital innovations, or targeting multi-trip and premium customers. Here are the market shares of the five main players:
- Blue Cross: 23% (extensive network, senior positioning, strong regional distribution)
- Manulife: 19% (multi-risk, digitalization, strong presence in Ontario and outside Quebec)
- Desjardins: 15% (personalization, provincial base in Quebec, affinity services)
- Allianz Global: 11% (international brand, premium offers, B2B2C)
- RSA/Intact: 8% (multi-product, banking integration, generalist clientele)
We observe an intermediate competitive structure: competition remains strong, but the leadership of the top five players is established. No major recent consolidation, but insurtechs are disrupting the traditional model, often through technological partnerships.
The offer is broken down into a few major products popular with Canadian travelers:
- Medical-only packages: covering only emergency care abroad, attractive price, flexible deductible.
- Multi-risk: includes medical, cancellation, baggage, civil liability; more expensive but popular for the convenience of "all inclusive".
- International Premium: high limits, extended assistance, sports or business options, targets long-distance and high-end travelers.
Basic plans are designed to reassure price-sensitive consumers, while comprehensive and high-end plans are gaining traction due to the diversification of profiles and the rising cost of medical claims. A few insurtechs are making their mark in this expanding market, including:
- Goose Insurance (B2C, mobile app subscription/instant claim management)
- Emma (B2C, flexibility, on-demand insurance, API for partners)
- Models: independent with direct offer, or partially white label for banks/platforms
Innovation revolves around customer experience: automation, 100% digital processes, API integration with travel players and neobanks. These insurtechs are already capturing a young and mobile clientele. Similarly, online comparison players are carving out an increasingly important share of subscriptions, including:
- Hellosafe.ca, Rates.ca, SoumissionsAssurances.ca (generalist and specialist comparison websites)
- Open APIs for distribution via banks, fintechs, and neobanks
- A growing share of "white label" offers integrated into travel or financial aggregation platforms
Comparison tools and API integration accelerate the digitization of the customer journey and promote competition: price transparency, technical delegation, and personalization at the heart of the market transformation in CA.
In summary, the Canadian market in 2025 relies on historical champions, increased digitization of products, and the irruption of insurtechs that renew the distribution and design of the user experience. Dynamic competition and omnichannel integration encourage continuous innovation at all levels of the value chain.
Methodology and Sources
The methodology for this 2025 travel insurance barometer in Canada is based on a structured approach aimed at ensuring the reliability, comparability, and relevance of the data collected internationally. The geographical scope includes 35 countries, including Canada, chosen based on their weight in the travel insurance market, the diversity of their maturity (emerging and developed markets), their regional representation (Europe, Americas, Asia-Pacific, Africa, Middle East), and the availability of official and reproducible information.
The set of indicators presented is based on the reference year 2025, with a historical perspective generally going back to 2015 and, where possible, projections up to 2030. Some indicators, such as average premiums or loss ratios, may be based on the most recent public sources (2023–2024); in these cases, adjustments have been made based on sectoral trends, analyst consensus, or annualized growth data from a wide variety of sources:
- National and international statistical agencies (Statistics Canada, INSEE, OECD, UNWTO, WHO, World Bank)
- Professional associations and insurance regulatory authorities (France Assureurs, Ifop, ABI, GDV, UNESPA, Swiss Insurance Association, Finaccord, IBISWorld, UStiA, Susep, CLHIA, Insurance Ireland, Insurance Sweden, Insurance Council of NZ, Insurance Authority HK, IRDAI, AMIS, ACAPS, APS, MAS, Insurance Association of Vietnam, SAIA, other national federations)
- Public financial reports from insurers and reinsurers
- Insurtech and OTA studies (Koala, Chapka, Cover Genius, Squaremouth)
- Consumer surveys as soon as they are available or Ifop studies
- Specialized press and major recognized media
A strict preference was given to using official, public data or data compiled from several converging sources. All estimates or reconstructed values are explicitly indicated in the report, especially for markets or years where information was not available in raw form.
Regarding modeling and estimation, gaps in direct data for certain countries—including Canada in some cases—were filled by extrapolations based on local market size, penetration rate, or weighted regional averages. Claims and premium data were smoothed over several fiscal years to neutralize exceptional volatility (particularly post-Covid). All amounts were converted to the reference currency (Canadian dollar) based on IMF rates for 2025 to ensure comparability. Forecasts to 2030 are based on a compound annual growth rate (CAGR) determined by historical dynamics, sector projections, and analyst consensus where available.
The barometer covers the entire value chain: indicators on the supply side (insurer structure, offer typology, innovation), on the demand side (consumer behavior, claims models, digitalization), and contextual elements (legal environment, exclusions, new risks). Each section — coverage rates, insurer rankings, types of guarantees, product innovations, legal framework — is defined according to a common grid in order to allow country-to-country comparison, while respecting major local specificities (product formats, legislation in force, purchasing habits).
The collection methods prioritize the "raw" collection of official data when available, combined with sector analyses, modeling (top-down and bottom-up method) and, if necessary, interpolations or adjustments. The main limitations encountered concern the sometimes fragmented nature of public information in certain emerging markets: in order to guarantee coherence, margins of uncertainty are provided and any estimate is explicitly mentioned. Particular attention has been paid to cross-validation, in particular between institutional reports, data from professional associations and figures consolidated by the insurance groups themselves.
