The demand for travel insurance has witnessed a significant increase in the UAE, driven by a surge in customer inquiries and a growing trend among travellers to secure their journeys, an industry player said.
According to Policybazaar.ae, a leading insurance marketplace in the Middle East, the number of customer inquiries for travel insurance has skyrocketed by 182 percent compared to last year.
This surge is primarily fuelled by travellers aged between 25 and 40 years, who constitute 85 percent of the inquiries, it said.
“As more people blend work and leisure, the demand for comprehensive travel insurance is escalating.
“This trend is further supported by the increase in leisure travel, which amplifies the need for travel insurance to safeguard against unforeseen events that could disrupt travel plans,” Policybazaar.ae said in a media release.
It said the family travellers segment has emerged as the largest share of the market, accounting for 60 percent and contributing significantly to market revenue.
“This segment highlights the importance of travel insurance in ensuring well-planned and risk-mitigated travel experiences for families,” the company said.
“The rise in travel insurance inquiries reflects a dynamic shift in behaviour and an evolving mindset of travellers who now prioritise safety, preparedness, and the desire for seamless travel experiences,” Neeraj Gupta, CEO, Policybazaar.ae said.
“The shift towards online channels for purchasing travel insurance has encouraged insurers to reevaluate and innovate their long-term strategies,” he said.
Global travel insurance market projections
The company said Azerbaijan, Georgia, USA, and Armenia were the top four travel destinations either inquired or travelled by UAE residents for 2024.
The average travel duration for some of these trips is a minimum of nine days, reflecting a preference for shorter, more frequent vacations.
The travel coverage market in the Middle East is expected to experience substantial growth, in line with the surge in the segment globally.
The global market size is projected to reach $99 billion by 2030, as per Spherical Insights.
Follow us on
