Middle East and Africa Travel Insurance Market Size (2024 - 2029)

The Middle East and Africa travel insurance market is experiencing growth driven by increasing demand due to rising outbound travel, both for business and leisure. The pandemic has prompted a shift in travel insurance offerings, with policies now commonly covering cancellation and medical expenses related to COVID-19. This evolving landscape is breaking down regional barriers to insurance uptake, as the MENA region responds to market demands with new initiatives. The region's diverse cultural and business travel opportunities further contribute to the expanding market size, with intra-regional travel being particularly popular among Middle Eastern travelers.

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Market Size of Middle East and Africa Travel Insurance Industry

middle east and africa travel insurance market size
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 6.00 %
Market Concentration Medium

Major Players

middle east and africa travel insurance market share

*Disclaimer: Major Players sorted in no particular order

Middle East and Africa Travel Insurance Market Analysis

While COVID-19 has shaken the travel industry's growth, any increase in outbound travel, large or small, and particularly in a changing travel environment, necessitates an expansion in the provision of travel insurance offerings. The pandemic may actually help to break down some of the regional barriers to travel insurance uptake. Many policies now provide cancellation and medical expenses coverage if an insured customer contracts Covid-19 since the pandemic.

In recent years, the MENA region has seen an increase in both inbound and outbound travel, both for business and leisure, which has increased the demand for travel insurance. As a result, it has responded to market demands by launching new regional and international initiatives. According to the World Tourism Organization (UNWTO), outbound travel in the Middle East and Africa region is expected to skyrocket, with the region expected to have around 80 million outbound visitors by 2030. According to UNWTO, outbound travel to the Middle East has quadrupled in the last 20 years, making it one of the world's smallest but fastest-growing tourist-generating regions.

Intra-regional travel is very popular among Middle Eastern travellers, with 39% of those polled having done so in the previous year. The MEA region, which stretches from Morocco to Iran and down to Sudan, offers diverse cultural and historical and religious experiences, as well as being a thriving hub for business travel, particularly in Dubai, the region's economic powerhouse. Regional policies for business travel are very common among small and medium-sized enterprises (SMEs), corporations, and individuals who travel frequently. International policies are more popular among C-suite executives, who spend an average of 80% of their time flying.

Middle East and Africa Travel Insurance Industry Segmentation

The report offers a complete background analysis of the Middle East and Africa Travel Insurance Market, which includes an assessment of the emerging market trends by segments, significant changes in the market dynamics, and the market overview.

By Type
Single-Trip Travel Insurance
Annual Multi-Trip Travel Insurance
By Distribution Channel
Insurance Companies
Insurance Intermediaries
Banks
Insurance Brokers
Others
By End-User
Senior Citizens
Education Travelers
Family Travelers
Others
By Country
Saudi Arabia
United Arab Emirates
Egypt
Kuwait
Qatar
Rest of Middle East & Africa
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Middle East and Africa Travel Insurance Market Size Summary

The Middle East and Africa travel insurance market is experiencing a transformative phase, driven by an increase in both inbound and outbound travel for business and leisure purposes. The region has seen a significant rise in travel activity, with the Middle East emerging as one of the fastest-growing tourist-generating areas globally. This surge in travel has spurred demand for travel insurance, prompting the introduction of new regional and international initiatives. The role of technology is pivotal in this market, with digital channels and mobile purchases becoming increasingly popular, offering insurers a broader reach and enhancing the efficiency and transparency of the claims process. Despite the growing demand, the overall penetration of travel insurance remains low compared to more mature markets, primarily due to a lack of awareness and understanding of its necessity.

The market is characterized by a fragmented landscape with major players like Chubb, Oman Insurance Company, AXA Insurance, RSA, and Union Insurance holding significant shares. The demand for travel insurance is particularly driven by the requirements of Schengen visa applications, with single-trip policies being the most popular. The region's travel rates are expected to rise, further boosting the demand for insurance products. Notably, innovative offerings such as travel insurance for camel transportation accidents in Saudi Arabia highlight the unique developments within the market. The acquisition of AXA's operations by Gulf Insurance Group underscores the dynamic nature of the market, as companies seek to expand their presence and enhance their service offerings across the region.

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Middle East and Africa Travel Insurance Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Porters Five Force Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Insights into Technological Advancements in the Industry

    6. 1.6 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Single-Trip Travel Insurance

      2. 2.1.2 Annual Multi-Trip Travel Insurance

    2. 2.2 By Distribution Channel

      1. 2.2.1 Insurance Companies

      2. 2.2.2 Insurance Intermediaries

      3. 2.2.3 Banks

      4. 2.2.4 Insurance Brokers

      5. 2.2.5 Others

    3. 2.3 By End-User

      1. 2.3.1 Senior Citizens

      2. 2.3.2 Education Travelers

      3. 2.3.3 Family Travelers

      4. 2.3.4 Others

    4. 2.4 By Country

      1. 2.4.1 Saudi Arabia

      2. 2.4.2 United Arab Emirates

      3. 2.4.3 Egypt

      4. 2.4.4 Kuwait

      5. 2.4.5 Qatar

      6. 2.4.6 Rest of Middle East & Africa

Middle East and Africa Travel Insurance Market Size FAQs

The Middle East and Africa Travel Insurance Market is projected to register a CAGR of greater than 6% during the forecast period (2024-2029)

Chubb, Oman Insurance Company, AXA Insurance, RSA and Union Insurance are the major companies operating in the Middle East and Africa Travel Insurance Market.

MEA Travel Insurance Market Report Snapshots

Middle East & Africa Travel Insurance Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)