Kathmandu. The global economy is changing rapidly, and so is the insurance sector. In particular, cross-border insurance is no longer a small or isolated service. It is now an important part of the global risk system.
International travel, migration for work, education, and global trade are growing rapidly. As a result, the demand for insurance services is increasing continuously. Currently, the total premium income in the global insurance sector is about 7 trillion euros and the sector is growing at a rate of more than 8 percent annually.
Global mobility is now extremely dynamic. International tourism is projected to reach approximately 1.3 to 1.4 billion trips in 2024. A large number of people from Bangladesh travel abroad every year. More than 10 million people go for employment alone. These people travel abroad and face uncertainties such as medical treatment, accidents, job risks and visa complications. Therefore, the need for cross-border insurance for them is growing rapidly.
The global travel insurance sector is also growing rapidly. In 2024, its size was about $23 billion to $31 billion. According to various estimates, it could reach $ 60 billion to $ 130 billion from 2030 to 2034. This sector is growing at a rate of 10 to 18 percent annually.
The medical tourism sector is also huge. Its size is about $ 45 billion to $ 100 billion.
Previously, this insurance was mainly travel-oriented. It has now expanded to include international health insurance, coverage for workers working abroad, insurance for students studying abroad, and risk protection for international business. As global supply chains become more complex, so do the types of risks.
Technology is transforming the sector at a rapid pace. Insurance through insurtech platforms can now be purchased online in minutes and policies are activated instantly. Investments in the sector are estimated to range from $10 billion to $15 billion annually. In developing countries, digital insurance services are growing at a rate of 20 to 30 percent. Apart from this, insurance claims are also being automated in many cases.
One of the biggest changes now is embedded insurance. You don’t have to buy separate insurance. It connects automatically to flight bookings, travel apps, mobile wallets or fintech services. This makes risk protection much easier for users and becomes part of the digital experience.
Mobile-based insurance is growing rapidly in developing countries. While traditional bank or branch-based services are limited, mobile usage is widespread. As a result, people are now able to access insurance through mobile. However, overall adoption rates are only between 10 and 25 percent.
The share of banks, fintech companies, and remittance service providers in this sector is increasing. It is combining remittances, savings, and risk protection to create an integrated financial service for migrant workers. In addition, there is a growing demand for international risk management for small and medium-sized businesses, creating a market for new types of insurance products.
However, some structural challenges remain. Rules vary between countries. This makes it difficult to process cross-border insurance claims and currency exchange risks exist. Many people lack awareness about insurance and digital services are still not fully trustworthy. These factors are preventing the sector from reaching its full potential.
Artificial intelligence (AI) and data analysis will make the insurance sector faster and more accurate. Risk assessment, premium determination and claim processing will be more automated. A global digital insurance market can be created in the future. It allows users to compare and purchase policies from different countries from a single location. As a result, insurance will gradually transform from a country-based service to a global data-driven and real-time security system. –Agency
