The country’s tourism industry has rebounded strongly post-COVID-19, meaning demand for leisure and business travel is growing exponentially
Demand for travel insurance in the UAE is expected to double as passengers become more cautious and aware in the post-pandemic period and countries require insurance to be purchased before submitting visas.
Industry executives noted that the cost of travel insurance has remained largely unchanged this year.
“While Covid-19 has passed, people still worry that things might go wrong when traveling. Many people who were previously not keen on buying travel insurance now consider travel insurance an important aspect of their journey as they become more aware of the Risks related to cancellations, financial and emotional risks. Secondly, the number of people traveling has also increased,” said Neeraj Gupta, CEO, Policybazaar.ae.
“We’re seeing travel insurance demand grow 65% year-on-year and 40-45% quarter-on-quarter,” he added.
Tourism in the UAE has rebounded strongly, boosting demand for travel insurance as well as air ticket prices. Demand for leisure and business travel has grown exponentially due to retaliatory travel.
Gupta added that most consumers buy insurance because of concerns about trip cancellation, getting sick, worrying about lost luggage, and worrying about getting sick while traveling abroad.
Although most packages cover Covid-19, customers still ask to make sure they cover the pandemic. “Most people still ask if the scheme covers Covid-19.”
Insurancemarket.ae Chief Marketing Officer Hitesh Motwani added that travel insurance demand typically doubles in summer as many residents traveling to Europe choose to purchase insurance under Schengen visa regulations.
“[The] The main reason UAE residents choose travel insurance now is visa regulations. Almost all countries, especially European countries, require it as part of the visa process,” he said.
Costs remain stagnant
Motwani said travel insurance costs have stagnated over the past few years.
“In fact, last year this number has decreased by about 10%, especially since the reduction of Covid-19 cases. In early 2021, the average premium has increased since the introduction of Covid-19 insurance, but has since decreased,” he said. added.
Gupta added that the cost of travel insurance has not changed much this year.
“For example, travel insurance for 4-5 days in Georgia costs about Dh60-70 and travel insurance for 10-15 days in the UK costs about Dh150,” he added.