Travel insurance is one of the more important aspects of booking travel and yet it seems some travellers are only just coming around to it. That is, according to Policybazaar.ae, which says the Middle East’s travel insurance market is set to experience substantial growth.
The insurance aggregator’s prediction comes after witnessing a significant 182% increase in travel insurance enquiries compared to last year. Interestingly, 85% of searches came from travellers aged 25 and 40 – the two generations (Gen Z and Millennials) that according to Allianz, love to take risks but not when it comes to their finances.
Policybazaar.ae’s increase in travel insurance searches is in line with research from Spherical Insights that projected the global travel insurance market to reach $99 billion by 2030. This surge is believed to be a result of increasing recognition in the importance of travel insurance.
“The rise in 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,” Neeraj Gupta, CEO, Policybazaar.ae explained.
In the UAE, Policybazaar.ae found families to be the largest group of those searching for travel insurance, accounting for nearly 60%, while remote workers emerged as a growing market in search for coverage.
The top four destinations for UAE holidaymakers seeking travel insurance were: Azerbaijan, Georgia, USA, and Armenia, with the minimum average duration for coverage being nine days, reflecting a preference for shorter, more frequent holidays.
While more travellers are seeing the benefits of being financially protected, there are still some that are yet to come around. Travel agents dealing with insurance-reluctant clients could try reminding them:
- Pay now, save thousands later!
What costs up to $200 before the trip could end up costing thousands after! We’ve all heard the horror stories but perhaps some clients need a reminder.
Medical fees in emergency cases can be expensive especially should it involve evacuation, helicopters, operations, hospital visits or even something as simple as an ambulance.
- Cancellation refunds
Most of us spend months, if not years, saving for a big getaway and all those savings can disappear without a proper cancellation back up plan.
Travel insurance can help bail travellers out of last-minute cancellation losses and ensure reimbursements on prepaid and even non-refundable holiday costs.
- They’re your prepaid hero
Travellers heading to areas with limited medical facilities or remote places with little-to-no human interaction may find their travel insurer to be an unexpected hero.
Most providers have their own transport and equipment to assist their policy holders in tough situations, even if they’re caught in the middle of the desert.
- It’s surprisingly affordable
Despite what some people might think and all that it can provide, travel insurance is for the most part, quite affordable. In 2022, travellers spent $266 per travel insurance policy, according to Forbes Advisor, which is cheaper than some hotel nights.
