Travel insurance payouts hit record high in 2023

How much did insurers pay on average?

Travel insurance payouts hit record high in 2023


By Mika Pangilinan

The travel insurance sector saw a 30% uptick in the total value of claims paid out to policyholders in 2023.

Travel insurance marketplace said this is a historic peak, with payouts averaging at $1,900 per claim.

Additionally, the amount reimbursed to travelers on average was six times the cost of purchasing a travel insurance policy.

Nearly half of the claims paid in 2023 were for trips that had been canceled or cut short, according to Squaremouth.

Trip cancellation claims alone constituted 25% of all claims, with an average payout of around $5,000. Following closely were emergency medical claims, which accounted for 24% of the total.

Claims related to travel delays and missed connections made up nearly another quarter of the reimbursements.

Claim Type by Benefit

% of Claims

Highest Claim

Avg. Claim

Trip Cancellation




Emergency Medical




Travel Delay




Trip Interruption




Missed Connection




Cancel For Any Reason




Baggage Loss




Baggage Delay




Medical Evacuation





Evacuation claims, although less frequent, emerged as the costliest, with average payouts surpassing $10,000.

Another key trend in 2023 was the increase in reimbursements under the Cancer for Any Reason (CFAR) benefit, which is an optional add-on to some policies. 

The average reimbursement for CFAR claims was reported at $2,111. The highest payout reached over $25,000, which is double the maximum payout recorded in 2022.

In a previous report, Squaremouth revealed that the average cost of spring travel this year is $7,719, up 11% from $6,943 in 2023.

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