Happy hump day, !

This week, we delve into the Travel insurance market which, After a pandemic-induced slump, has international tourism set to reach pre-2020 levels by 2024, with 1.49 billion travelers projected by 2035.

The insure tech market is currently being dominated by Cloud Computing, claiming 23% of the market. With Blockchain (20%) and IoT (17%) running in a close second and third position.

California has become the poster child for what happens when catastrophic risks collide with market instability. Over the past five years, rates have more than doubled, with a jaw-dropping 13.6% spike expected in 2024.

— Insurance 150 Team

Table of Contents

• Data Dive

• Trend of the Week

• Market Movers

• Insurtech Corner

• Deal of the Week

• Macroeconomics Minute

• Interesting Articles

• Tweet of the Week

📚 Data Dive

The $243B Travel Insurance Gap

1. Trend Watch: Travel’s Big Rebound

Global travel is back. After a pandemic-induced slump, international tourism is set to reach pre-2020 levels, and is projected to reach 1.49 billion travelers by 2035. The key driver? A rising middle class in emerging markets and a shift toward experience-driven spending. This resurgence is fueling demand for travel insurance, which is expected to hit $155B by 2034, growing at a 6.39% CAGR​.

2. The Untapped Billions

Despite the growth, travel insurance penetration remains low at 30%. If that rate ticks up just 1% per year, the total unlocked market could reach $243B by 2034—a massive opportunity for insurers and PE investors​.

3. Strategic Insight: Insurers Must Adapt or Miss Out

Consumers now expect on-demand, customizable coverage, driven by digital platforms. AI-driven underwriting, embedded insurance partnerships (think airlines and travel agencies), and automated claims processing will be game-changers. The biggest underleveraged segment? Adventure travel and remote workers, where coverage options remain limited​.

Bottom Line

The travel insurance market isn’t just growing—it’s transforming. Insurers that innovate distribution and tailor products for emerging segments will capture the lion’s share of this multi-billion-dollar opportunity. Those that don’t? They’ll be stuck at the gate.

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📈 Trend Of The Week

California's Home Insurance Rates Go Vertical

California homeowners are in for a financial shock as insurance premiums skyrocket. Over the past five years, rates have more than doubled, with a jaw-dropping 13.6% spike expected in 2024—up from just 3.2% in 2022. This climb is driven by a lethal cocktail of escalating wildfire risks, climate-related losses, and insurers retreating from the state.

Zoom out: While the national home insurance rate increase averages around 7%, California has become the poster child for what happens when catastrophic risks collide with market instability. Some insurers, like State Farm and Allstate, have stopped issuing new policies in the state altogether.

Bottom line: With no quick fixes in sight, these premium hikes aren’t just insurance bills—they’re a warning about the growing financial costs of natural disasters.

📊 Market Movers

🛡️ Insurtech Corner

Insurtech: Who’s Winning the Digital Arms Race?

If insurance is a chessboard, Cloud Computing just put your legacy systems in check, claiming 23% of the market. Right behind it, Blockchain (20%) is eliminating fraud, while IoT (17%) is watching your every move—literally—through connected devices. Machine Learning (15%) is working overtime to predict claims before you even file them, and Robo-advisors (11%) are busy replacing human agents who still use fax machines.

Meanwhile, the last 14% of “Other Technologies” are either the next game-changer… or just another industry buzzword. Either way, the insurtech sector isn’t just evolving—it’s leading a full-blown coup against traditional insurance models. Stay tuned.

🤝 Deal of the Week

Openly Cashes In—Now Comes the Hard Part

Another week, another InsurTech raising a nine-figure round. This time, Openly landed $193M to fuel expansion, led by Eden Global Partners and Allianz X. That includes $123M in equity and a $70M senior note—a sizable war chest to grow its independent agent distribution model.

Zoom in: The funding follows $301M in written premiums last year, but Openly’s own carrier reported an $11M underwriting loss. Investors clearly believe scaling will solve that problem.

Bigger picture: While InsurTech peers have struggled with profitability, Openly is sticking to the basics—traditional distribution, strong capital partners, and methodical state expansion.

Betting on the old-school agent model in a digital-first world? We’ll see how that plays out.

🌎 Macroeconomics Minute

The Global Economy is Growing. So is Trade Drama

Goldman Sachs forecasts global GDP growth of 2.7% in 2025, with the US outperforming at 2.5%—well above the 1.9% consensus. The Eurozone? Not so much—0.8% growth, weighed down by Trump-era trade tensions 2.0.

The key factor? Tariffs. Trump’s likely second-term playbook includes levies on China and imported cars, lower immigration, and regulatory rollbacks. That mix could push US inflation up to 3% and shave 0.4% off global GDP—or more if trade wars escalate.

Meanwhile, central banks are back to cutting rates like it’s 2019. The Fed is expected to trim down to 3.25-  3.5%, while the ECB eyes 1.75%. Japan, the outlier, is actually raising rates.

Big picture: The US remains the global economy’s MVP—for now. But if tariffs go nuclear, expect some bruising.

📰 Interesting Articles

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🐣 Tweet of the week

"The way to get started is to quit talking and begin doing"

Walt Disney