UAE Travel Insurance Market Overview

Market Size in 2024: USD 110.50 Million

Market Size in 2033: USD 264.97 Million

Market Growth Rate 2025-2033: 9.14%

According to IMARC Group's latest research publication, "UAE Travel Insurance Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The UAE travel insurance market size was valued at USD 110.50 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 264.97 Million by 2033, exhibiting a growth rate of 9.14% during 2025-2033.

How AI is Reshaping the Future of UAE Travel Insurance Market

• Streamlining Claims Processing: AI-powered systems are helping insurers process travel claims faster, with platforms like Policybazaar.ae reporting a 182% surge in customer enquiries, handled efficiently through chatbot technology and automated support.
• Enabling Smart Risk Assessment: Artificial intelligence and machine learning tools are helping insurers analyze traveler behavior patterns, enabling personalized policy creation and accurate risk evaluation for UAE's 11.06 million expatriate population.
• Powering Digital Insurance Platforms: InsurTech solutions are making policy purchases seamless, with mobile apps allowing travelers to compare plans, customize coverage, and buy policies in minutes without traditional agent dependencies.
• Enhancing Fraud Detection: Advanced AI algorithms quickly scrutinize extensive datasets to identify patterns synonymous with fraudulent behavior, reducing risks for both insurers and policyholders across the UAE market.
• Supporting Parametric Insurance: AI-driven parametric coverage is gaining traction, offering quicker claims processes based on predefined parameters like flight delays or weather conditions, providing immediate financial assistance to travelers.

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UAE Travel Insurance Market Trends & Drivers:

The UAE travel insurance market is riding a wave of tourism growth, with Dubai alone welcoming 18.72 million international visitors in 2024. The country's position as a major global travel hub is creating strong demand for comprehensive travel coverage. With UAE residents spending around 80 billion dirhams on travel and tourism, there's growing awareness about protecting these significant investments. The large expatriate community of about 11.06 million as of mid-2025 is a key driver, as these residents frequently travel internationally and need policies covering trip cancellations, lost luggage, flight delays, and medical emergencies abroad. Dubai International Airport handling over 92 million passengers annually further amplifies the need for travel protection, especially as the UAE serves as a major transit point connecting East and West.

Digital transformation is reshaping how UAE residents buy travel insurance. Mobile apps and online platforms have made purchasing policies incredibly convenient, with travelers now able to compare plans and complete purchases within minutes. Major players like Allianz, AXA Gulf, and Zurich Insurance are leveraging these digital channels to reach customers more effectively. The shift toward online distribution has been dramatic—Policybazaar.ae alone saw customer enquiries jump 182% in 2024, with travelers aged 25-40 accounting for 85% of these enquiries. This tech-savvy demographic prefers the speed and transparency of digital platforms over traditional insurance agents. Family travelers represent 60% of the market share, showing how comprehensive coverage is becoming a standard part of trip planning for UAE residents heading to popular destinations like the US, Azerbaijan, Georgia, and Armenia.

The January 2025 rollout of mandatory health insurance in the Northern Emirates (Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah) is creating a ripple effect across the insurance sector. With basic health coverage starting at just 320 dirhams annually, this initiative is expanding healthcare access and insurance awareness across the UAE. RAK Hospital reported a 7% increase in patient volumes, with the largest growth coming from newly insured blue-collar workers. This heightened insurance consciousness is translating into the travel insurance space, as residents who now understand the value of health coverage are more likely to purchase comprehensive travel policies. Meanwhile, the summer travel season brings its own challenges—with baggage mishandling reports increasing and UAE travelers to Europe filing more claims for lost luggage and medical issues, insurers are responding by offering enhanced baggage protection and broader coverage options that address real traveler concerns.

UAE Travel Insurance Industry Segmentation:

The report has segmented the market into the following categories:

Insurance Type Insights:

• Single-Trip Travel Insurance
• Annual Multi-Trip Travel Insurance
• Long-Stay Travel Insurance

Coverage Insights:

• Medical Expenses
• Trip Cancellation
• Trip Delay
• Property Damage
• Others

Distribution Channel Insights:

• Insurance Intermediaries
• Insurance Companies
• Banks
• Insurance Brokers
• Insurance Aggregators
• Others

End User Insights:

• Senior Citizens
• Education Travelers
• Business Travelers
• Family Travelers
• Others

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in UAE Travel Insurance Market

• March 2024: Zurich Insurance partnered with Klook, a travel and leisure e-commerce platform, to launch FlyEasy coverage utilizing the Zurich Edge platform with parametric insurance features, addressing customer anxiety from extended flight delays at airports.
• August 2024: Policybazaar.ae reported a 182% increase in travel insurance enquiries compared to the previous year, driven primarily by travelers aged 25-40 who account for 85% of enquiries, with family travelers representing 60% of the total market share.
• January 2025: The UAE introduced mandatory health insurance for the Northern Emirates, with basic coverage starting at 320 dirhams annually, significantly expanding insurance awareness and creating spillover demand for complementary travel insurance products across the country.

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