The market for cancel for any reason (CFAR) travel insurance is on the rise, growing from $2.67 billion in 2025 to $2.98 billion in 2026, reflecting an 11.7% CAGR. By 2030, it’s projected to reach $4.58 billion, with a CAGR of 11.3%.
CFAR policies allow travelers to cancel trips for reasons outside standard cancellation coverage, offering partial reimbursement for non-refundable expenses. This growth is fueled by increased international travel, heightened awareness of travel insurance, more frequent flight cancellations, the rise of online travel booking, and greater leisure travel expenditures.
In early 2025, the UN Tourism reported around 300 million international travelers, a 5% increase from 2024. Additionally, the demand for flexible insurance products is growing due to geopolitical tensions and climate-related uncertainties.
North America leads the CFAR market due to strong insurance infrastructure and travel volumes, while Asia-Pacific is forecast to grow the fastest, driven by a burgeoning middle class and rising outbound tourism.
