Middle East and Africa Travel Insurance Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Middle East And Africa Travel Insurance Market Trends and Insights

Surge in Umrah & Hajj Pilgrimage Driving Mandatory Medical Cover

Saudi Arabia includes health cover with every Hajj, Umrah, and tourist visa, pushing more than 1.8 million annual pilgrims into the insurance pool. Many visitors upgrade beyond the basic package for wider benefits, stimulating cross-border demand as travelers in Egypt and Nigeria, insure trips well before departure. Insurers now design pilgrimage-specific limits, multilingual claims support, and on-ground assistance in Makkah and Madinah. The structural nature of compulsory cover secures multi-year premium inflows, encouraging new entrants that specialize in Sharia-compliant products. 

Rapid Growth of GCC Low-Cost Carriers Stimulating Short-Haul Trips

Low-cost carriers are rapidly expanding in the GCC, leading to a surge in short-haul travel and, consequently, a boost in the Middle East and Africa travel insurance market. Budget airlines, such as Flynas, are ramping up their seat capacity at a double-digit rate, enabling more frequent weekend getaways and short business trips. This uptick in travel frequency translates to a rise in policy volumes, even if the premiums for each policy remain modest. Many airlines are now embedding micro-insurance policies directly into their ticketing, not only creating a fresh revenue stream but also slashing acquisition costs for insurers. Moreover, expatriates frequently crossing borders for work, especially on busy routes like Riyadh–Dubai and Jeddah–Doha—are increasingly drawn to flexible, daily-priced travel covers, further propelling the market's growth.

Rising Penetration of Digital Distribution Platforms

The increasing penetration of digital distribution platforms is transforming the Middle East and Africa travel insurance market by streamlining access, reducing costs, and broadening customer reach. In markets like South Africa and the UAE, mobile money services and aggregator websites have shortened the policy purchase process to just a few minutes, cutting distribution expenses by up to 40%^{[1]The State of the Industry Report on Mobile Money 2025,” gsma.com}. These platforms leverage user data to personalize coverage recommendations and pre-fill travel details, significantly boosting conversion rates, especially among first-time buyers. In countries such as Kenya and Nigeria, partnerships between mobile wallets and insurers are driving financial inclusion by offering micro-insurance products bundled with airtime or remittance services, effectively reaching underserved populations and expanding the market base.

Regulatory Mandates for International Health Cover

In destinations like the UAE, Qatar, and Schengen countries, regulatory mandates now require proof of international health coverage for visa issuance. This has significantly fueled the growth of the MEA travel insurance market. As a result of these mandates, travelers—especially those who once relied on informal support abroad—are becoming increasingly aware of the necessity of adequate insurance. Insurers, in turn, are responding by offering products that comply with visa requirements. These products come with standardized features, including a minimum medical coverage of EUR 30,000 and telemedicine services with no deductible. The steady demand allows carriers to invest in multilingual claims support. Moreover, this demand creates avenues for cross-selling additional products, such as trip-cancellation coverage, further enhancing market penetration.

Low Insurance Awareness & Cultural Aversion in Sub-Saharan Markets

In Sub-Saharan Africa, the growth of travel insurance faces hurdles due to low insurance awareness and a cultural aversion to risk transfer. Outbound travelers in nations such as Nigeria and Kenya often rely on family support or embassy assistance instead of opting for formal insurance. A limited understanding of financial matters, coupled with a tendency to pay out-of-pocket for healthcare, diminishes the perceived necessity for proactive protection. Consequently, insurers are prioritizing grassroots educational initiatives and facilitating access through USSD-based purchasing options. Moreover, partnerships with reputable mobile network operators and banks have proven to be more effective in fostering trust and encouraging adoption than relying solely on traditional advertising methods.

Volatile FX Rates Escalating Claim Costs for African Underwriters

Currency volatility poses a significant challenge to the travel insurance market in the Middle East and Africa. This is especially true for African underwriters who settle claims in USD or EUR. When local currencies, such as the naira or rand, lose value, the expense of covering international medical bills surges, squeezing profit margins. Insurers frequently find that their premium pricing doesn't keep pace with these currency shifts. As a result, they resort to stricter medical screenings and heightened risk controls. Some insurance providers are turning to dynamic pricing models and selective currency hedging to lessen their exposure. However, these adjustments often lead to higher premiums, which can alienate budget-conscious consumers and stifle market expansion.

Segment Analysis

By Insurance Type: Single-Trip Dominates While Multi-Trip Accelerates

Single-trip policies captured 58.1% of the Middle East and Africa Travel Insurance market in 2024, anchored by compulsory Hajj and Umrah cover in Saudi Arabia and casual leisure trips across the Gulf. Annual products now attract frequent flyers in Dubai and Johannesburg, lifting this sub-category at a 10.82% CAGR. 

Continuous growth in remote work has blurred the lines between holiday and business journeys. The Middle East and Africa Travel Insurance market size for annual multi-trip cover is projected to widen steadily through 2030 as corporations include such plans in mobility packages. Meanwhile, long-stay policies remain niche yet steady among expatriate engineers and postgraduate students. 

Note: Segment shares of all individual segments available upon report purchase

By Coverage: Medical Expenses Lead While Pandemic Protection Grows

Medical expenses and emergency assistance carried 46.2% share in 2024, reflecting strict visa mandates and rising regional healthcare prices. The Middle East and Africa Travel Insurance market size associated with pandemic cover is expected to climb swiftly on a 14.21% CAGR, illustrating lingering public-health concerns. 

Trip-cancellation riders stay crucial for premium leisure buyers, while adventure-sport add-ons carve a foothold among climbers visiting Kilimanjaro. Insurers raise medical limits as providers forecast 12% cost inflation in 2025, ensuring policies remain relevant and competitive. 

By Distribution Channel: Digital Platforms Disrupt Traditional Networks

Brokers accounted for 35.1% of the Middle East and Africa Travel Insurance market in 2024, yet aggregator portals and airline-embedded offers are growing fast at 15.62% CAGR. Direct-to-consumer apps from leading insurers gain traction as users demand instant documents for visa applications. 

The Middle East and Africa Travel Insurance market share for airline and OTA channels will expand further as carriers negotiate white-label agreements that embed cover in ticket pricing. Banks defend their role through bundled cards offering lounge access, forex, and automatic insurance. 

Note: Segment shares of all individual segments available upon report purchase

By End User: Family Travelers Lead While Senior Segment Accelerates

Family groups commanded 30.1% of the Middle East and Africa Travel Insurance market in 2024, driven by seasonal school breaks and group pilgrimages. Seniors are advancing quickest at a 12.42% CAGR^{[2]Centers for Disease Control and Prevention, “The International Business Traveler,” cdc.gov}, reflecting longer life expectancy and higher discretionary income. 

Business travelers remain a steady, high-yield base due to mandatory duty-of-care policies. Student covers emerge as a volume play, especially from Gulf sponsors sending candidates to the United Kingdom and Australia, while adventure seekers purchase specialized covers that include evacuation from remote regions. 

Geography Analysis

The Middle East and Africa Travel Insurance market is regionally weighted toward the Gulf, which controlled a 65.1% share in 2024. Saudi Arabia posted 16.92% insurance revenue growth after Vision 2030 rules embedded medical cover for every pilgrim. The UAE follows with a 21.4% jump in premiums, propelled by data-led underwriting and paperless issuance. Qatar, Kuwait, and Bahrain enjoy mid-single-digit growth as outbound trips rise with more relaxed visa regimes. 

Africa contributes to a smaller base but shows a strong upside. South Africa anchors the continent through sophisticated fintech adoption that lowers sales friction. Nigeria and Kenya display double-digit expansion fueled by a growing middle class and better air connectivity. Egypt and Morocco add scale through tourism rebound and new visitor mandates, while East African regulators encourage inclusive medical schemes that often bundle travel cover. 

Cross-border rules shape competitive tactics. New UAE broker regulations, live since February 2025, tighten capital and governance thresholds^{[3]Norton Rose Fulbright, “Key Developments in the Middle East Insurance Sector,” nortonrosefulbright.com}. Saudi Arabia’s 30% local-ceding requirement, effective January 2025, influences reinsurer selection and pricing. These policies encourage global carriers to deepen regional partnerships, ensuring capacity while nurturing local expertise.