Canadians' renewed interest in winter vacations is expected to drive demand for travel insurance. Nearly half of Canadians (46%) plan to travel this winter, up 11 percentage points from last year, signaling a return to pre-pandemic travel patterns and higher exposure to risks that travel insurance mitigates, according to Allianz Global Assistance Canada's 2025 Winter Vacation Confidence Study.
Younger Canadians are leading the resurgence, with 52% of Millennials and 48% of Gen Z planning trips. Families are also a key factor, as 56% of households with children report winter travel plans. Increased mobility and higher travel volumes will likely result in a corresponding rise in claims for trip interruptions, medical emergencies abroad, and flight cancellations, according to the study.
Holiday travel is also rebounding sharply, with nearly one-third of Canadians (32%) planning to leave their home province in late December, nearly double last year’s figure.
This trend points to increased seasonal demand for policies covering provincial and international travel risks. Domestic travel is growing slightly, while US travel is declining, particularly among Boomers, who are favoring Canadian destinations and warm-weather options such as Mexico and the Caribbean.
The Allianz study also highlighted that as Canadians travel more, insurers face both opportunities and responsibilities. More policies will be sold, increasing revenue potential for travel insurers, but the volume of claims could rise as well, particularly for medical emergencies and cancellations due to unpredictable factors like weather, flight disruptions, or geopolitical events.
Comprehensive travel insurance remains essential, offering coverage that protects consumers against financial loss while enabling insurers to manage risk exposure in a growing and dynamic travel market, the study noted.
Overall, the rebound in Canadian travel underscores the critical role of travel insurance in supporting safe and financially protected trips. Insurers like Allianz are positioned to respond to the surge, providing products that cover emerging travel risks and helping Canadians enjoy winter getaways with confidence.
