UAE travel insurance market set to grow 40% in 2012

The UAE travel insurance market is set to grow 40 percent this year, on the back of the growing tourism market in the Gulf state, one of the country’s largest providers predicted on Wednesday.

Dubai’s economy is expected to grow by 4.5 percent this year, with tourism one of the major economic drivers and contributing 60 percent to the emirate’s GDP, His Highness Sheikh Ahmad Bin Saeed Al Maktoum, chairman of the Dubai Supreme Fiscal Committee, said on Wednesday at the Dubai Economic Outlook 2012 presentation.

With Dubai’s travel and tourism sectors forecast to grow by more than six percent, the UAE travel insurance market is expected to see strong growth of around 40 percent, according to Dubai Islamic Insurance and Reinsurance Company (AMAN Insurance), the largest Islamic Insurance provider in the UAE.

One of the new products AMAN has launched to capture a stronger share of the market is Haj & Umrah Travel Insurance, which is specifically designed for travellers going for their annual pilgrimage to Mecca.

“The country’s travel insurance market has demonstrated key vibrancy despite the effects left behind by the global economic crisis. One of the main reasons for this continued growth is the recent development of making travel insurance a compulsory aspect of securing a travel visa to any desired country, particularly Shengen and other European countries,” said Hussein Al Meeza, chief executive officer of AMAN.