Middle East & Africa Travel Insurance Market to Grow with a CAGR of 15.8% through 2030
The
MEA travel insurance market is driven by growing travel demand, digital
adoption, and increasing awareness of the value of coverage.
According to
TechSci Research report, “Middle East & Africa Travel Insurance Market - By Country, Competition Forecast & Opportunities 2020-2030F”, Middle East & Africa Travel Insurance Market was valued at USD 2.85
Billion in 2024 and is expected to reach USD 6.87 Billion by 2030 with a CAGR
of 15.8% during the forecast period. The Middle East and
Africa (MEA) travel insurance market is rapidly evolving, driven by a mix of
factors that are reshaping both consumer behaviour and the competitive
landscape. Key drivers include the increasing reliance on travel for both
personal and professional purposes, alongside a growing awareness of the
potential risks associated with international travel. These factors are pushing
more travelers to consider travel insurance as a necessary part of their plans.
However, while growth prospects are promising, challenges related to regulatory
frameworks, customer education, and competitive pressures continue to pose
significant barriers.
Another
key factor influencing the market’s growth is the rise in travel-related risks,
particularly medical emergencies, trip cancellations, and delays. As more
travelers, including business professionals and senior citizens, venture
abroad, the necessity of comprehensive travel insurance is becoming evident.
Many individuals are now seeking policies that provide robust coverage for a
range of risks, such as medical evacuation, trip interruption, and baggage
loss. This growing awareness about potential risks and the benefits of
protection against them has contributed to the increasing demand for travel
insurance products. However, this growth comes with several challenges. One of
the most significant is the lack of standardization and fragmented regulatory
environment across different MEA countries. The variety of rules, regulations,
and approval processes across the region can create obstacles for both insurers
and consumers. Insurance providers often face difficulties in navigating these
diverse regulatory landscapes, leading to potential delays and inconsistencies
in the services offered. These barriers can hinder the smooth entry of new
players into the market and limit the expansion of existing insurers. consumer scepticism
about the true value of travel insurance remains a challenge. While awareness
of travel insurance benefits has risen, many consumers are still hesitant to
invest in policies due to concerns about hidden fees, exclusions, and complex
terms and conditions. This lack of understanding, coupled with the distrust of
insurance companies, can prevent potential customers from purchasing coverage.
To overcome this, insurers must focus on building trust through clearer
communication, education campaigns, and more transparent policy offerings.
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The Middle East
& Africa Travel Insurance market is
segmented into type, end user, distribution channel, country and companies.
Based
on end user, senior citizens are becoming the fastest-growing segment in the
travel insurance market due to a heightened awareness of the importance of
health and safety while traveling. As individuals age, their susceptibility to
medical conditions increases, making them more prone to health issues or
emergencies, especially when traveling abroad. Travel insurance offers
essential coverage for these risks, including medical evacuation, hospital
stays, and emergency treatments, providing seniors with peace of mind during
their trips. In addition to health concerns, older adults often have a fixed
income and may not be able to bear the financial burden of unexpected travel
disruptions, such as trip cancellations or lost baggage. Travel insurance helps
mitigate these risks, ensuring that seniors are not financially strained by
unforeseen events during their travels. Many insurers are recognizing the
specific needs of senior travelers and are offering customized policies that
provide coverage for medical conditions, pre-existing conditions, and
specialized emergency assistance.
Saudi
Arabia is the fastest-growing country in the MEA travel insurance market,
largely due to its expanding travel sector and the government's strategic
efforts to boost tourism under its Vision 2030 plan. Vision 2030 is a long-term
initiative aimed at diversifying the kingdom’s economy and reducing its
reliance on oil exports. A key component of this plan is the development of
tourism, with the goal of attracting international visitors while encouraging
domestic travel. This has led to an influx of both inbound and outbound
travelers, creating a strong demand for travel insurance products. The
expansion of tourism infrastructure, such as the development of new
attractions, luxury resorts, and religious tourism centres like Mecca and
Medina, has drawn millions of visitors, further driving the need for travel
protection. Additionally, Saudi citizens are increasingly traveling abroad for
leisure, business, and education, further fuelling the demand for insurance services.
Saudi Arabia’s growing middle class and higher disposable income also
contribute to the rise in travel insurance adoption, as more people can afford
both domestic and international travel. With the rise in global travel,
particularly among younger Saudi nationals, the need for comprehensive travel
insurance to protect against medical emergencies, cancellations, and other
travel disruptions has surged. This growth aligns with the kingdom’s broader
efforts to become a global tourism hub by 2030.
Major companies
operating in Middle East & Africa Travel Insurance market are:
- AXA Insurance
- Chubb Insurance
- Oman Insurance
Company
- RSA Insurance
- Union Insurance
- Tawuniya
Insurance Company
- AIG Insurance
- Qatar Insurance
Company
- Doha Insurance
Company
- KIB Takaful
Insurance Company
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“In
recent years as
sustainability becomes a more prominent global issue, there is a growing trend
towards offering travel insurance that aligns with responsible and eco-friendly
practices. Insurers are increasingly focusing on promoting policies that
support sustainable travel, such as offering coverage for eco-tourism or
ensuring that claims processes do not contribute to excessive waste.
Additionally, there is a growing focus on corporate social responsibility (CSR)
initiatives by insurance providers, who are looking to support community-based
travel projects and environmental causes“. Said Mr.
Karan Chechi, Research Director of TechSci Research, a research-based
management consulting firm.
"Middle East
& Africa Travel Insurance Market By Type (Single-Trip Travel Insurance,
Annual Multi-Trip Travel Insurance), By Distribution Channel (Insurance
companies, Insurance Intermediaries, Banks, Insurance Brokers, Others), By End
User (Senior Citizens, Education Travelers, Business Travelers, Family
Travelers, Others), By Country, Competition, Forecast & Opportunities
2020-2030F”, has evaluated the future growth potential of Middle
East & Africa Travel Insurance market
and provides statistics & information on market size, structure and future
market growth. The report intends to provide cutting-edge market intelligence
and help decision makers take sound investment decisions. Besides, the report
also identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in the Middle East & Africa Travel
Insurance market.
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