Tuesday, 02 January 2024 12:17 GMT

Travel Insurance Demand Soars 45% As UAE Residents Plan Holiday Travel


(MENAFN- EIN Presswire) EINPresswire/ -- Policybazaar, a leading insurance marketplace in the Middle East, has recorded a substantial 45% increase in travel insurance queries for Q4 2025 compared to the same period last year.

Demand for travel insurance rises sharply during peak periods such as UAE National Day, Christmas, New Year, and the long school break in December. The surge reflects higher outbound travel, growing awareness and preference among UAE residents safeguarding their journeys.

The most popular destinations for UAE residents remain Georgia, Armenia, Azerbaijan, Germany, the Netherlands, the United Kingdom, and the United States. Policybazaar has also seen a 48% increase in inbound travellers visiting the UAE who opted to secure their travel insurance through the platform - reflecting continued global demand for UAE tourism, supported by international events, new attractions, and cultural experiences.
The rise in travel insurance uptake is also being shaped by evolving traveller behaviour. There is increased interest in unique and nature-led activities/ adventure such as hiking, trekking, wildlife experiences, etc. - with serenity and natural landscapes emerging as key motivators. Solo travel continues to gain popularity, along with a slight rise in women travellers purchasing insurance for independent trips.

The most common claims filed this season include flight cancellations, delays, lost luggage, and medical emergencies. Recent geopolitical developments have further encouraged travellers to opt for higher-end, more comprehensive policies, often at higher premiums. Social media has become a pivotal tool in travel planning, influencing destination choices as well as insurance purchase decisions. Travellers aged 28–45 continue to form the largest customer segment, reflecting a demographic that prioritises comprehensive coverage and peace of mind when travelling abroad.

Toshita Chauhan, Chief Business Officer – General Insurance, Policybazaar said,“Travellers today are far more aware of the risks associated with international travel and view insurance as a necessity. We are seeing a clear shift toward informed decision-making, with customers actively seeking protection, especially during peak travel periods when volumes are at their highest. Insurers, too, are adapting their offerings to meet the evolving needs of modern travellers.”

According to data available from Grand View research, the global travel insurance market is projected to reach USD 63.87 billion by 2030, growing at a CAGR of 15.4% from 2025 to 2030. This growth is being driven by strong tourism activity worldwide, coupled with advancements in digital tools and AI that simplify the process of comparing, purchasing, and managing travel insurance across different budgets and coverage needs.

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About Policybazaar:
Policybazaar, launched in 2018, is PB Fintech Group's (NSE: POLICYBZR) first overseas venture and serves as an online financial products marketplace aimed at educating consumers on the importance of insurance as a protection tool while offering a one-stop platform for personal finance needs in the UAE. The platform partners with more than 35+ insurance institutions and features over 400 products, including life insurance, health insurance, motor insurance, SME and more. Since inception, Policybazaar has played a pivotal role in driving awareness and simplifying how insurance products are bought and understood in the UAE.

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