Travellers increasingly want protection for changes excluded from standard cancellation policies.
The global cancel for any reason (CFAR) travel insurance market is expected to grow from $2.67b in 2025 to $2.98b in 2026, a compound annual growth rate (CAGR) of 11.7%, as travellers seek more flexible protection against changes to their plans.
The market is forecast to reach $4.58b by 2030, growing at a CAGR of 11.3% over the period, according to The Business Research Company.
CFAR is an optional travel insurance upgrade that allows policyholders to cancel a trip for reasons not normally covered by standard trip cancellation policies. It typically provides partial reimbursement of prepaid, non-refundable travel costs.
The market’s growth has been supported by increasing international travel, greater awareness of travel insurance, more flight cancellations and delays, the expansion of online travel booking platforms and higher spending on leisure travel.
International travel continues to provide a key source of demand. UN Tourism reported about 300 million international travellers in the first quarter of 2025, up 5% from the same period in 2024.
The market is also expected to benefit from growing demand for flexible and customisable insurance products as geopolitical tensions and climate-related disruptions create greater uncertainty around travel plans.
North America accounted for the largest share of the CFAR travel insurance market in 2025, supported by established insurance infrastructure and high travel volumes.
Asia-Pacific is expected to be the fastest-growing region during the forecast period, driven by expanding middle-class populations, rising outbound tourism and increased digital adoption.
