The last quarter of 2025 is seeing a surge in demand for travel insurance in the UAE as compared to the same period in 2024, according to a new report by insurance marketplace Policybazaar.ae
The new report states that the fourth quarter of this year has seen a surge of around 45% in the demand for travel insurance. Demand increases around this period every year as it coincides with the festive break comprising the UAE National Day, Christmas, New Year, as well as the long school break in December; however, this year the surge in demand is significant.
The surge reflects higher outbound travel, growing awareness and a larger preference among UAE residents to safeguard their journeys. The most popular destinations for UAE residents remain Georgia, Armenia, Azerbaijan, Germany, the Netherlands, the UK, and the US.
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.
According to data available from Grand View Research, the travel insurance market in the Middle East and Africa is expected to reach a projected revenue of $6,560m by 2030. A compound annual growth rate of 15.4% is expected of the Middle East and Africa travel insurance market from 2025 to 2030. In terms of revenue, the MEA region accounted for 10.2% of the global travel insurance market in 2024.
The Grand View Research lists other travel insurance market highlights of the Middle East and Africa market:
- The MEA travel insurance market generated a revenue of $2,769m in 2024.
- The market is expected to grow at a CAGR of 15.5% from 2025 to 2030.
- In terms of segment, single-trip travel insurance was the largest revenue-generating insurance coverage in 2024.
- Single-trip travel Insurance is the most lucrative insurance coverage segment, registering the fastest growth during the forecast period.
Policybazaar.ae Chief Business Officer Toshita Chauhan told the media, “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.”