On the other hand, 44 percent of countries have an identifiable risk of terrorist attack, according to Aon P.L.C.'s latest terrorism and political violence map.

That potential threat is just one good reason for executives traveling abroad to buy travel insurance, said Andrew Bard, vice president of HCC Medical Insurance Services in Indianapolis.

And, of course, if an employee gets injured or sick while overseas, he or she is typically required to pay for medical services before being treated, and those services can be very, very costly. But an employee can be covered by travel insurance for as little as $30 a month.

Travel insurance used to be a pretty limited product, Bard said. But in the last decade, the industry has evolved and diversified, out of circumstance and economic necessity, stretching to include everything from basic medical coverage to medical and political evacuations and natural disaster-related complications.

According to the U.S. Travel Insurance Association, U.S. citizens have spent roughly $1.6 billion on travel insurance last year, representing more than 13 percent growth in the past two years. Pre-9/11, the industry was roughly a $500 million a year industry. It has evolved even further post-Hurricane Katrina and other natural disasters. Now, because of H1N1, a number of carriers have begun to provide pandemic coverage.

Throughout the travel insurance industry's evolution, Dominick Zenzola, vice president of Chubb Insurance in Chicago, said he continually reminds corporate clients that their most valuable assets are their employees, particularly their key executives.

For frequent travelers, knowing they are well taken care of abroad is considered by many benefits and risk managers to be a valuable recruitment and retention tool, he said.

"What happens if there's a medical emergency or an accident? How will the company handle that call at 3 a.m.?" Zenzola said.

Regardless of where they travel – Europe, Asia, or even the Middle East — "it's important that coverage responds in any and all types of emergency situations," he said. "Chances are people get sick when traveling, even if it's not a life-threatening illness, or a disaster, they still could need medical attention."

Chubb captures about 14 percent of the market.

The travel insurance industry has a low level of market-share concentration. According to IBIS Associates, in 2012, the top four companies in the industry accounted for about 30.1 percent of industry revenue. Industry concentration has increased in the past five years as the economy sagged, but more companies are expected to enter the industry in the next three to five years.

"For a while, in the midst of the recession, companies cut back on travel, and people turned to video conferencing," Zenzola said. "But with most businesses, if funds are there, nothing beats the personal touch, and face-to-face interactions will still be the norm.

"We expect executives will continue to travel, and the need for insurance will continue."

Danger Zones

Alliant Insurance, in its latest annual report rating the political and economic risks for 65 countries, looked at factors such as currency devaluation, economic downturns and political violence. First, the "good news": Nigeria, Greece, Russia and China were named "most improved" over the last 12 months. And, now, the five nations deemed most dangerous for business, for various reasons:  

Mali

Tunisia

Argentina

Egypt

Kashakhstan