Report Description

The UAE travel insurance market is anticipated to be driven by an expansion of the tourist industry and increased awareness about the benefits of travel insurance is fueling the growth of the travel Insurance market during the projected period.

The travel insurance demand is mainly expected to be driven by increasing domestic and international travel throughout the forecast period. According to information from the World Tourism Organization, UAE citizens spent around USD 21.78 billion (or 80 billion dirhams) on travel and tourism in 2021. In a similar vein, the organization's data indicated that the UAE ranked first at the regional level and sixth globally in terms of spending rates on travel and tourism, as reported by the "Emirates Today" newspaper. Furthermore, the average per capita tourism and travel expenditure in the UAE was approximately USD 2,500. As a result, rising tourism spending is anticipated to provide the travel insurance industry with significant growth potential in the coming years.

Moreover, Policybazaar, a travel insurance company, reported a 150% increase in sales of travel insurance policies in the April-June quarter of 2022 compared to the first quarter of this year in the UAE market.

Increasing Issue of Flight Cancellations and Delays Drives the Market Growth

Despite an increase in travel, there have been a lot of flight delays and cancellations in recent months at airports all over the world. In fact, one of the most frequent problems encountered by travelers from the UAE is delayed or lost check-in baggage. According to the most recent data released by the US Department of Transportation, about 220,000 baggage were "mishandled" by US airlines in April 2022, which means they were lost, harmed, delayed, or stolen. Many bags are either left behind or go missing due to staff shortages, especially in large European airports like Amsterdam and London where many travelers use connecting flights for international travel. The airline may only offer a small reimbursement, which is surely insufficient. Fortunately, travel insurance providers offer coverage for both baggage delay and baggage loss, thus the market need for travel insurance businesses is expected to rise during the anticipated period.