Policybazaar.ae, an insurance marketplace in the Middle East, has recorded a substantial 45% increase in travel insurance queries for Q4 2025 compared to the same period last year.
Demand for travel insurance rises sharply
during peak periods such as UAE National Day, Christmas, New Year, and the long
school break in December.
The surge reflects higher outbound travel,
growing awareness and preference among UAE residents safeguarding their
journeys.
The most popular destinations for UAE
residents remain Georgia, Armenia, Azerbaijan, Germany, the Netherlands, the UK,
and the US.
Policybazaar.ae has also seen a 48% increase
in inbound travellers visiting the UAE who opted to secure their travel
insurance through the platform - reflecting continued global demand for UAE
tourism, supported by international events, new attractions, and cultural
experiences.
The rise in travel insurance uptake is also
being shaped by evolving traveller behaviour. There is increased interest in
unique and nature-led activities/ adventure such as hiking, trekking, wildlife
experiences, etc. - with serenity and natural landscapes emerging as key
motivators. Solo travel continues to gain popularity, along with a slight rise
in women travellers purchasing insurance for independent trips.
The most common claims filed this season
include flight cancellations, delays, lost luggage, and medical emergencies.
Recent geopolitical developments have further
encouraged travellers to opt for higher-end, more comprehensive policies, often
at higher premiums.
Social media has become a pivotal tool in
travel planning, influencing destination choices as well as insurance purchase
decisions.
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.
Toshita Chauhan, Chief Business Officer –
General Insurance, Policybazaar.ae said, “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.”
According to data available from Grand View
research, the global travel insurance market is projected to reach $63.87
billion by 2030, growing at a CAGR of 15.4% from 2025 to 2030.
This growth is being driven by strong tourism
activity worldwide, coupled with advancements in digital tools and AI that
simplify the process of comparing, purchasing, and managing travel insurance
across different budgets and coverage needs.