UAE Travel Insurance Market to Grow with a CAGR of 9.19% through 2030
The UAE travel insurance market is
growing due to rising tourism, mandatory travel insurance policies, increasing
medical costs, and digitalization as well as customized plans, affordability,
and seamless claims processing
According
to TechSci Research report, “UAE Travel Insurance Market – By Region, Competition,
Forecast & Opportunities, 2030F”, the UAE Travel Insurance market stood
at USD 552.17 million in 2024 and is anticipated to grow USD 932.45 million by
2030 with a CAGR 9.19% during
forecast period. The UAE travel insurance market is witnessing
significant growth driven by various factors, including increasing tourism,
evolving government regulations, rising medical costs, and digitalization in
the insurance industry. As one of the most visited countries globally, the
UAE’s tourism sector plays a pivotal role in fueling the demand for travel
insurance. The market is also seeing a shift towards more tailored, niche
policies designed to cater to different customer needs, such as adventure
sports coverage, senior travel insurance, and family plans. At the same time,
insurers are leveraging digital platforms to streamline the purchase process,
making it easier for travelers to access insurance at the point of need.
Tourism is one of the key driving forces
behind the expansion of the UAE travel insurance market. The country is a
global tourism hub, attracting millions of tourists every year due to its
luxury offerings, world-class infrastructure, and strategic location connecting
Europe, Asia, and Africa. In 2023, Dubai, the UAE’s tourism capital, welcomed
over 14 million international visitors, underlining the strong position the UAE
holds in the global tourism industry. This influx of travelers has naturally
led to increased demand for travel insurance, as visitors seek financial
protection for unexpected events such as medical emergencies, trip
cancellations, or lost baggage.
The UAE government has also introduced
regulations to further boost the travel insurance market. For example, visitors
applying for UAE tourist visas are required to present proof of valid health
insurance covering medical treatment and emergencies during their stay.
Similarly, the "Golden Visa" program and other residency schemes
often necessitate comprehensive health coverage for expatriates and investors.
Such regulations create a steady demand for travel insurance policies, further
cementing its role as a necessary product for both inbound and outbound
travelers.
The increasing cost of healthcare in the
UAE is another critical driver for the travel insurance market. With private
healthcare services in the UAE being costly, especially for non-residents,
travelers—both inbound and outbound—seek travel insurance to avoid substantial
out-of-pocket medical expenses in case of an emergency. A medical emergency
abroad can lead to significant financial strain if the traveler is unprepared.
As such, the growing awareness of medical risks associated with travel,
compounded by the escalating healthcare costs, has contributed to the steady
rise in demand for comprehensive travel insurance packages.
Despite the growth of the market,
several challenges persist. Regulatory complexities remain one of the
most significant obstacles, as insurers must constantly adapt to changing
government policies and regulations. As travel insurance becomes more
integrated with visa and residency programs, insurance providers need to remain
compliant with evolving laws, which can be time-consuming and costly.
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The UAE Travel Insurance market is segmented into trip type,
mode of purchase, traveler type, travel type, and company.
Based on the mode of purchase, the insurance
agents/brokers segment is the fastest growing in the UAE travel insurance
market, driven by their ability to offer personalized services and expert
guidance. With growing consumer demand for customized insurance solutions,
agents and brokers are capitalizing on the opportunity to provide tailored
policies that cater to specific traveler needs. Their role in educating
customers about the importance of travel insurance, assisting with claims, and
offering a range of options from multiple insurers has made them an invaluable
resource. The increasing reliance on professional advice and the expanding
tourism sector continue to fuel growth in this segment.
Based on the region,
Sharjah is the fastest-growing region in the UAE travel insurance market,
driven by its increasing tourism and expanding expatriate population. As the
third-largest emirate, Sharjah attracts a significant number of travelers,
particularly from neighboring countries, boosting demand for travel insurance.
The region’s robust healthcare infrastructure and regulatory push for
comprehensive health coverage have also contributed to this growth.
Additionally, the rising awareness of the importance of travel insurance,
combined with Sharjah's growing role as a business and cultural hub, has led to
a higher uptake of policies. This growth reflects the broader trend of travel
insurance adoption across the UAE.
Major companies
operating in UAE Travel Insurance market are:
- Orient
Insurance PJSC
- Alliance
Insurance P.S.C
- American
International Group, Inc
- Royal
& Sun Alliance Insurance (Middle East)
- AXA
Insurance (Gulf)
- Oman
Insurance Company P.S.C. ("Sukoon")'s
- Islamic
Arab Insurance Company
- HSBC
UAE Middle East Limited
- Al
Sagr National Insurance Company (PSC)’s
- Dubai
National Insurance & Reinsurance P.S.C
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“The rise of
digital platforms is transforming the way travel insurance is marketed,
purchased, and managed in the UAE. Online sales platforms and mobile apps have
made it easier for travelers to access insurance, allowing them to purchase
policies in real-time as part of their travel booking process. This shift to
digital has simplified the experience for consumers and insurers alike, making
it more efficient and transparent. Consumers can now easily compare travel
insurance options, assess coverage details, and select policies that best meet
their needs—all from the convenience of their mobile phones. Moreover, travel
insurance providers in the UAE are also increasingly offering customized
policies to cater to the specific needs of different traveler segments.
Traditional travel insurance policies that offer blanket coverage are being
replaced by more tailored options, allowing customers to select coverage that
best fits their travel needs. This trend is particularly evident in areas such
as adventure travel and business travel, where standard coverage may not be
adequate,” said Mr. Karan Chechi, Research Director of TechSci Research, a
research-based management consulting firm.
"UAE Travel Insurance
Market, By Trip Type (Single Trip Travel Insurance, Annual Multi-Trip Travel
Insurance), By Mode of Purchase (Insurance Agents/Brokers, Insurance Companies,
Others (Insurtech Companies, Third Party, etc.)), By Traveler Type (Senior Citizens,
Education Travelers, Business Travelers, Family Travelers, Independent
Travelers), By Travel Type (Domestic Travel, International Travel), By Region,
Competition, Forecast & Opportunities, 2020-2030F”,
has evaluated the future growth potential of UAE 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 UAE Travel Insurance market.
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