UAE: As more people travel, demand for travel insurance is increasing
Industry officials remarked that this year, the cost of travel insurance has mostly remained flat.
Due to increased caution and awareness among travellers in the wake of the epidemic, as well as the necessity that insurance be in place before applying for visas, demand for travel insurance in the UAE is expected to treble.
Travel insurance prices are, for the most part, staying flat this year, according to industry officials.
"Even though COVID-19 is over, people are still wary that mishaps can happen when they travel. Many people who previously had reservations about purchasing travel insurance now view it as a crucial component of their trip since they are more aware of the hazards related to cancellation, including the financial and emotional costs. Second, more people are travelling, according to Neeraj Gupta, CEO of Policybazaar.ae.
"We are seeing a 65% increase in demand for travel insurance year over year and a 40% to 45% increase month over month," he continued.
The travel industry in the UAE has made a strong comeback, increasing demand for tickets and travel insurance. The demand for leisure and business travel has increased dramatically as a result of vengeance travel.
According to Gupta, the majority of customers get insurance owing to worries about trip cancellations, illness, the worry of losing their belongings, and the fear of becoming sick while travelling abroad.
Customers still call to confirm that their packages include Covid-19 coverage even though the majority of them do. The majority of consumers continue to inquire about Covid-19 coverage.
According to Hitesh Motwani, chief marketing officer of Insurancemarket.ae, demand for travel insurance typically doubles over the summer as many citizens travelling to Europe choose to get the coverage necessary by Schengen visa rules.
"Visa rules are the main factor driving UAE people to get travel insurance currently. It is a need for obtaining a visa in almost all nations, particularly those in Europe, he noted.
Costs remain constant.
According to Motwani, the price of travel insurance hasn't changed much in recent years.
of reality, especially with the decline of Covid-19 instances, they have dropped by about 10% over the past year. The average rates initially increased in 2021 after the Covid-19 cover was implemented, but they have subsequently decreased," he continued.
The price of travel insurance hasn't changed significantly this year, according to Gupta.
"For instance, travel insurance costs for a 4-5 day trip to Georgia cost about Dh60-70 and Dh150 for a 10-15 day tour to the UK," he continued.