Travel insurance provider Berkshire Hathaway Travel Protection (BHTP) shares new insights into the biggest drivers of travel insurance demand, based on findings from its 11th annual State of Travel Insurance research. The data highlights a shifting travel insurance landscape, where younger, more diverse, and more risk-aware audiences are shaping the future of travel protection.
Despite ongoing global uncertainty, travel remained robust in 2025, with overall spending largely consistent with 2024. The same heightened demand is reflected in travel insurance purchasing over the past two years, according to BHTP.com statistics. BHTP reported a 12 percent increase in total policies purchased in 2025, and that same trend continues with policy purchases up 7 percent already in Q1 2026.
At the same time, the profile of travelers and their decision-making regarding trip protection is evolving, as Gen Z and Millennials—who continue to travel at above-average rates—demonstrate heightened awareness of risks such as climate change, geopolitical instability, and travel disruptions, driving their increased usage for travel insurance.
“Travelers are not pulling back—they’re becoming more intentional about how they plan and protect their trips,” said Carol Mueller, head of marketing at Berkshire Hathaway Travel Protection. “As awareness of all types of potential disruptions grow, travel insurance is increasingly viewed as an essential part of the travel experience, particularly among younger and more frequent travelers.”
Higher-income travelers are not necessarily traveling more, but frequent travelers and affluent travelers are becoming younger and more diverse. These travelers are among the most likely to invest in travel insurance this year, driven by both the cost and complexity of their trips.
Across all groups, trip cost continues to drive travel insurance purchases, while insurance price remains the main barrier. Travelers respond differently to global uncertainty—some opting for shorter or domestic trips, others continuing as usual—but the need for flexibility and protection remains constant.
BHTP’s State of Travel Insurance research has been conducted each fall since 2016 by Polymath Research + Marketing, using independent national panels surveying thousands of consumers on travel behaviors, attitudes, and expectations. The findings continue to provide a comprehensive view into the evolving travel landscape and the factors influencing demand for travel insurance.
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