Middle East and Africa Travel Insurance Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Middle East and Africa Travel Insurance Market is segmented 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, Business Travelers, Family Travelers, Others) and by Country (Saudi Arabia, United Arab Emirates, Egypt, Kuwait, Qatar, and Rest of Middle East & Africa)

Market Snapshot

Market Summary
Study Period: 2018-2021
Base Year: 2021
CAGR: >6 %

Need a report that reflects how COVID-19 has impacted this market and its growth?

Market Overview

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.

Scope of the Report

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

Report scope can be customized per your requirements. Click here.

Key Market Trends

A Tech Savvy Demography Drives the Market

The role of technology in the distribution of travel insurance in the MEA region appears to be significant. Direct mobile purchases had begun to supplant the more traditional method of consulting a broker to find the best travel insurance options. When it comes to booking travel, more than half of Middle Eastern travellers believe technology has empowered them. After all, digital channels provide travel insurers with an additional means of reaching out to prospective customers. Technology makes care and the claims process more accessible, efficient, and transparent. Making the compensation procedure effective, simple, and quick, benefits both the insurance company and the patient. Digitising the claims management process will also help eliminate any human errors and ensure the accuracy and safety of all data. Improved customer assistance can surely only help to encourage new customers and retain existing ones.

Graph

Schengen Visa Requirements Govern the Travel Insurance Market

There is a direct market for travel insurance in MEA, but overall penetration remains low due to a lack of awareness and appreciation of the need for travel insurance products in this region, particularly when compared to other, more mature insurance markets. The requirement for travel insurance as prescribed by Schengen visa applications is the main driver of travel insurance purchasing in the MEA region. According to the travel preferences of Middle Eastern travellers specifically, 64% of Middle Eastern travellers had travelled internationally in the previous 12 months in 2018, with a significant number of these individuals travelling internationally heading to Europe (27% ).

When it comes to outbound travel, single-trip policies and those that meet Schengen visa requirements are frequently the most popular travel insurance products. Schengen products are likely to account for half of all products sold. However, compared to other geographic regions, travel insurance may continue to be underutilised. The region's travel rates improved as oil prices fell. Rising travel rates and spending, particularly in the Middle East, are expected to increase demand for travel insurance.

Consumer Spending

Competitive Landscape

The report covers the major players operating in the Middle East and Africa Insurance Market. The market is fragmented due to top companies holding a significant market share.

Recent Development

  • April 2022 - Saudi Arabia has launched the world’s first travel insurance to cover accidents that take place when transporting camels, Saudi Press Agency (SPA) reported. The Saudi Camel Club said it has collaborated with the Swiss Finance House to insure against road accidents and deaths that take place while camels are being picked up or dropped off. An insurance platform allows owners to subscribe to insurance for their camels remotely, and then receive an insurance policy online.
  • September 2021 - Gulf Insurance Group completes acquisition deal for AXA operations in region. The deal includes AXA’s shareholding in AXA Gulf, which entails operations in Bahrain, the UAE, Oman and Qatar; as well as AXA Cooperative Insurance Company. 

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porters Five Force Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

    5. 4.5 Insights into Technological Advancements in the Industry

    6. 4.6 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Single-Trip Travel Insurance

      2. 5.1.2 Annual Multi-Trip Travel Insurance

    2. 5.2 By Distribution Channel

      1. 5.2.1 Insurance Companies

      2. 5.2.2 Insurance Intermediaries

      3. 5.2.3 Banks

      4. 5.2.4 Insurance Brokers

      5. 5.2.5 Others

    3. 5.3 By End-User

      1. 5.3.1 Senior Citizens

      2. 5.3.2 Education Travelers

      3. 5.3.3 Family Travelers

      4. 5.3.4 Others

    4. 5.4 By Country

      1. 5.4.1 Saudi Arabia

      2. 5.4.2 United Arab Emirates

      3. 5.4.3 Egypt

      4. 5.4.4 Kuwait

      5. 5.4.5 Qatar

      6. 5.4.6 Rest of Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 AXA Insurance

      2. 6.2.2 Chubb

      3. 6.2.3 Oman Insurance Company

      4. 6.2.4 RSA

      5. 6.2.5 Union Insurance

      6. 6.2.6 Tawuniya Insurance Company

      7. 6.2.7 AIG

      8. 6.2.8 Qatar Insurance Company

      9. 6.2.9 Doha Insurance Company

      10. 6.2.10 KIB Takaful Insurance Company*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. DISCLAIMER AND ABOUT US

You can also purchase parts of this report. Do you want to check out a section wise price list?

Frequently Asked Questions

The Middle East and Africa Travel Insurance Market market is studied from 2018 - 2021.

The Middle East and Africa Travel Insurance Market is growing at a CAGR of >6% over the next 5 years.

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

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!