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UAE: The demand for travel insurance has witnessed a significant increase, driven by a surge in customer inquiries and a growing trend among travellers to secure their journeys. According to Policybazaar.ae, a leading insurance marketplace in the Middle East - the number of customer inquiries for travel insurance has skyrocketed by 182% compared to last year. This surge is primarily fuelled by travellers aged between 25 and 40 years, who constitute 85% of the inquiries.
Policybazaar.ae has disclosed the top four travel destinations (either inquired or travelled by UAE residents) for 2024: Azerbaijan, Georgia, USA, and Armenia. The average travel duration for some of these trips is a minimum of nine days, reflecting a preference for shorter, more frequent vacations. This trend can be attributed to the extreme summer temperatures and the onset of summer holidays, prompting millions of families and individuals to seek cooler destinations for their summer breaks. Additionally, the shift towards online channels for purchasing travel insurance has encouraged insurers to reevaluate and innovate their long-term strategies.
In addition, a notable trend observed is the rise in remote work, particularly among individuals below the age of 40. 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.
The family travellers segment has emerged as the largest share of the market, accounting for 60% 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 need for enhanced travel insurance options for families is evident, as it enables better preparation and peace of mind for all family members.
Neeraj Gupta, CEO, Policybazaar.ae 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."
The travel insurance market in the Middle East is set to experience substantial growth. As per Spherical Insights, the global travel insurance market size is projected to reach USD 99.0 billion by 2030. This exponential growth underscores the increasing recognition of the importance of travel insurance.
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About Policybazaar.ae
Policybazaar.ae started in 2018 is PB Fintech Group's (NSE: POLICYBZR) first overseas venture and is an online financial products marketplace aimed to educate people on the importance of insurance as a protection tool and becoming a one-stop-shop for consumers’ personal finance needs in the UAE market. Policybazaar.ae currently partners with more than 35+ insurance and banking partners with 400+ products on offer ranging from new-age life insurance, health insurance, motor insurance, personal loans, car loans, home loans to credit cards, and more. Policybazaar.ae’s web traffic has increased 10X in the last one year. The portal started with a purpose to educate people on insurance products and has had a significant influence on how insurance is bought in the UAE. It has helped in driving penetration of pure life insurance, health insurance, and other such products.