The travel insurance market has seen a dramatic uptick in demand, driven by evolving travel habits and heightened awareness of the need for coverage. According to Policybazaar.ae, a leading insurance marketplace in the Middle East, customer inquiries for travel insurance have surged by 182% compared to the previous year. This spike is predominantly among travelers aged 25 to 40, who make up 85% of the inquiries, reflecting a shift towards a more safety-conscious travel mindset.
Policybazaar.ae has identified the top four travel destinations for UAE residents in 2024 as Azerbaijan, Georgia, the USA, and Armenia. These destinations are popular among travelers looking for cooler climates and shorter vacations, with the average trip lasting at least nine days. This preference is largely driven by the extreme summer temperatures in the region and the start of summer holidays, which motivate families and individuals to seek out more temperate locations.
The rise in remote work, particularly among younger professionals, has also contributed to the increased demand for travel insurance. As work and leisure increasingly blend, travelers seek comprehensive insurance to protect against potential disruptions. The shift towards online platforms for purchasing travel insurance has prompted insurers to rethink and innovate their strategies to better cater to modern consumer needs.
Family travelers represent a significant portion of the market, accounting for 60% of the demand. This segment underscores the importance of robust travel insurance options that offer peace of mind and comprehensive coverage for family trips. The growth in this segment highlights a broader trend towards planning and risk management in travel, as families seek to ensure their journeys are as secure and enjoyable as possible.
Neeraj Gupta, CEO of Policybazaar.ae, commented, “The rise in travel insurance inquiries reflects a dynamic shift in behavior and an evolving mindset of travelers who now prioritize safety, preparedness, and the desire for seamless travel experiences.”
The global travel insurance market is projected to reach USD 99.0 billion by 2030, according to Spherical Insights. This anticipated growth reflects an increasing recognition of the vital role that travel insurance plays in ensuring secure and well-prepared travel experiences.
