In the UAE, the demand for travel insurance has seen a notable rise, with customer inquiries increasing by 182 percent in 2024 compared to the previous year, as reported by a prominent insurance market entity. The majority of these inquiries, accounting for 85 percent, come from travelers aged 25 to 40, according to Policybazaar.ae, a UAE-based insurance marketplace. The global travel insurance market is projected to reach $63.9 billion by 2030, as per a report from Grand View Research, Inc., with an expected growth rate of 15.4 percent from 2022 to 2030.
Further forecasts indicate that the global travel insurance market could surge to $96.6 billion by 2033, with a compound annual growth rate of 7.2 percent from the $48.2 billion recorded in 2023. This growth is attributed to the expansion of the tourism industry, driven by factors like easy online travel bookings, widespread media coverage of various holiday types, increased disposable income, and improved package holidays. Neeraj Gupta, CEO of Policybazaar.ae, noted that the increase in travel insurance inquiries reflects a change in traveler behavior and a growing emphasis on safety and seamless travel experiences.
Policybazaar.ae also highlighted the top travel destinations for 2024 among UAE residents, including Azerbaijan, Georgia, the USA, and Armenia. The average duration for these trips is at least nine days, indicating a trend towards shorter, more frequent vacations. The shift towards online channels for purchasing travel insurance has prompted insurers to rethink their long-term strategies. Additionally, the rise in remote work, especially among those under 40, is boosting the demand for comprehensive travel insurance, as more people combine work and leisure.
The family travelers segment represents the largest portion of the market, contributing 60 percent to the market revenue, underscoring the importance of travel insurance for well-planned family trips. In terms of insurance coverage, single-trip insurance held the largest revenue share of 60.1 percent in 2021 and is expected to grow at a high rate until 2033. The senior citizens segment dominated the market in 2021 and is projected to expand significantly, driven by policy plans tailored for seniors, including Covid-19 and emergency medical covers. The business travelers segment is also expected to see substantial growth, fueled by an increase in business trips and new insurance product offerings.
