Saudi Arabia Travel Insurance Market - Growth, Trends, COVID-19 Impact and Forecasts (2022 - 2027)

Saudi Arabia Travel Insurance Market is segmented By Coverage Type (Single Trip Travel Insurance, Annual Multi-Trip Travel Insurance and Others), By End-User (Senior Citizens, Education Travelers, Business Travelers, Family Travelers, and Others) and By Distribution Channel (Insurance Intermediaries, Insurance Companies, Banks, Insurance Brokers, Insurance Aggregators, and Other Distribution Channels).

Market Snapshot

Saudi Arabia Travel Insurance Market
Study Period: 2018-2027
Base Year: 2021
CAGR: >6 %

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Market Overview

The COVID-19 undeniably had a huge impact on the Travel Insurance Market. Because of the pandemic, majority of the people in country were not prefering travel. Even people from other countries were restricted due to the imposition of lockdown and Airlines were inactive. Moreover, the fear of the COVID-19 pandemic post its outbreak in early 2020, is enabling travel insurance vendors to offer COVID-19 related covers which may include testing and quarantine costs.

The Saudi Arabia travel insurance market has witnessed a constant growth in the reasons because of major factors such as rising tourism demands after pandemic. In addition to this, government-mandated travel policies are further fueling the growth of the travel insurance market. However, the low penetration of insurance policies limits the growth of this market. Conversely, new technological developments for the travel industries are expected to provide numerous opportunities for the expansion of the travel insurance market during the forecast period. In addition to this, owing to growing travel and tourism within the Saudi Arabia region and the rapid economic growth of the region, is aiding the growth of the travel insurance industry in Saudi Arabia.

Depending on coverage type, the annual multi-trip travel insurance segment dominated the travel insurance market in Saudi Arabia and is expected to witness the highest growth, the segment is expected to continue this trend during the forecast period. The growth of the segment is attributed owing to, travel restrictions being normalized post the COVID-19 pandemic and the travel industry gaining back its traction In addition to this, the multi-trip travel insurance segment is expected to provide travelers appropriate insurance coverage to ensure their annual vacations going smoothly which propels the growth of the market. Also due to the growth of multiple industries in the Saudi Arabia region which is promoting business-related travel and the growing tourism industry of the region is aiding the growth of the travel insurance market in this region.

Scope of the Report

Travel Insurance covers all the financials incurred during travel of the buyer of such Insurance policy. It includes coverage against road accidents, and aviation, among others. Saudi Arabia Travel Insurance Market is segmented By Coverage Type, End-User and Distribution Channel. By Coverage Type, the market is segmented into Single Trip Travel Insurance, Annual Multi-Trip Travel Insurance and Others. By End-User, the market is segmented into Senior Citizens, Education Travelers, Business Travelers, Family Travelers and Others. By Distribution Channel, the market is segmented into Insurance Intermediaries, Insurance Companies, Banks, Insurance Brokers.Insurance Aggregators and Other Distribution Channels.

By Coverage Type
Single Trip Travel Insurance
Annual Multi-Trip Travel Insurance
Others
By End-User
Senior Citizens
Education Travelers
Business Travelers
Family Travelers
Others
By Distribution Channel
Insurance Intermediaries
Insurance Companies
Banks
Insurance Brokers
Insurance Aggregators
Other Distribution Channels

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Key Market Trends

Enhanced interest and subsequent increase in the travel expenditure

The tourism industry has witnessed steady growth in the past decade in Suadi Arabia excluding the years 2020 and 2021 due to the impact of COVID-19 on the travel industry. Factors such as an increase in disposable income, package holidays, extensive coverage of holiday types by media, and easy online travel bookings have attributed to the growth in the tourism industry. As the tourist traffic is growing more, more incidences of loss of luggage, important documents, medical emergencies, and natural calamities are being registered. To mitigate the risk associated with such incidences, an increasing number of people are opting for travel insurance. Therefore, the growth of the tourism industry is acting as a prime driver for the travel insurance market.

Saudi Arabia Travel Insurance Market

Increase in the value of Insurance services

There has been a constant growth of Insurance Market in Saudi Arabia in the recent years. This is due to the increased availability of wide range of Insurance services across Qatar. People have also been prefering to use Insurance services because of multitude reasons which include natural calamities, health reasons and travel. Particularly Insurance is being availed in case of Road Travel and Air Travel. Also the COVID -19 impact had been a key factor for increase in the purchase of Insurance services post its aftermath. Also during certain situations like International Travel, some companies are offering the Insurance package along with it for the safety of passengers which are collaborated with Insurance companies to provide services at a relatively lesser price. These accounted for the increase in the Travel Insurance Market in Saudi Arabia.

Saudi Arabia Insurance Market 2

Competitive Landscape

The report includes an overview of the top players in the travel insurance market operating across Saudi Arabia. The Saudi Arabia travel insurance market is characterized by nearly consolidated players. The top 5 players constitute more than 75 % of the market with some other insignificant new players in the market.

Recent Development

  • On January 2022, eBaoTech Corporation, a digital insurance solution provider has collaborated with Walaa Cooperative Insurance Company deployed eBaoTech's Digicore platform and launched the first batch of products on the new platform. Walaa will use eBaoCloud DigitalCore to manage all commercial and consumer lines of business to greatly improve its operation efficiency and obtain technology advancements in the digital age.
  • On May 2021, The Company for Cooperative Insurance (Tawuniya) has launched the Covid-19 Travel Insurance program to provide extra cover and reassurance for Saudis travelling. The program offers international travel insurance cover with a benefit limit of SAR 650,000 per person. It has been launched to coincide with the introduction of Saudi government regulations allowing citizens to resume international travel and will cover associated costs if they fall ill with the virus while outside the Kingdom.

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. INDUSTRY DYNAMICS AND INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Insights on Various Regulatory Trends Travel Insurance Market in Saudi Arabia

    5. 4.5 Insights on Impact of Technology and Innovation in Operations in Travel Insurance

    6. 4.6 Insights on Performance of Travel Insurance in Saudi Arabia

    7. 4.7 Industry Attractiveness - Porter's 5 Force Analysis

      1. 4.7.1 Threat of New Entrants

      2. 4.7.2 Bargaining Power of Buyers/Consumers

      3. 4.7.3 Bargaining Power of Suppliers

      4. 4.7.4 Threat of Substitute Products

      5. 4.7.5 Intensity of Competitive Rivalry

    8. 4.8 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Coverage Type

      1. 5.1.1 Single Trip Travel Insurance

      2. 5.1.2 Annual Multi-Trip Travel Insurance

      3. 5.1.3 Others

    2. 5.2 By End-User

      1. 5.2.1 Senior Citizens

      2. 5.2.2 Education Travelers

      3. 5.2.3 Business Travelers

      4. 5.2.4 Family Travelers

      5. 5.2.5 Others

    3. 5.3 By Distribution Channel

      1. 5.3.1 Insurance Intermediaries

      2. 5.3.2 Insurance Companies

      3. 5.3.3 Banks

      4. 5.3.4 Insurance Brokers

      5. 5.3.5 Insurance Aggregators

      6. 5.3.6 Other Distribution Channels

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Competition Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Tawuniya

      2. 6.2.2 Al Rajhi Takaful

      3. 6.2.3 Walaa

      4. 6.2.4 Medgulf

      5. 6.2.5 Axa Cooperative

      6. 6.2.6 Malath Insurance

      7. 6.2.7 Wataniya Insurance

      8. 6.2.8 Al Etihad Cooperative

      9. 6.2.9 Bupa Arabia

      10. 6.2.10 SAICO*

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

  8. 8. DISCLAIMER AND ABOUT US

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Frequently Asked Questions

The Saudi Arabia Travel Insurance Market market is studied from 2018 - 2027.

The Saudi Arabia Travel Insurance Market is growing at a CAGR of >6% over the next 5 years.

Tawuniya, Al Rajhi Takaful, Walaa, Medgulf, Axa Cooperative are the major companies operating in Saudi Arabia Travel Insurance Market.

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