03-06-2025
UAE: Travel insurance premiums see double-digit increase
Travel insurance premiums in the UAE have surged at a double-digit rate, particularly for Europe-bound travellers, as the peak outbound travel season approaches, according to industry experts.
Toshita Chauhan, business head – general insurance at Policybazaar UAE, said premiums have risen by 12 per cent to 18 per cent year-on-year. This translates to an increase of Dh15 to Dh70 per policy, depending on the travel duration, destination, and age of the travellers.
"The primary factors driving this increase include rising global medical costs and a spike in claims from Europe-bound travellers - especially to Schengen countries - largely due to hospitalizations and baggage losses," Chauhan told Khaleej Times.
She noted that popular European destinations such as France, Spain, and Italy are leading in medical emergency claims. Meanwhile, tropical destinations like Thailand, Bali, and the Maldives have seen a rise in trip cancellations due to weather-related disruptions.
Travellers from the UAE heading to the UK and USA are reporting some of the highest medical treatment costs, contributing to elevated premiums. While missed flight connections and baggage delays have also emerged as the two most common claim categories among UAE residents this year, she added.
Summer rush
Summer is the peak travel period for outbound UAE tourism, coinciding with school holidays that last over two months. Many families opt for vacations in cooler European climates during this time, leading to a sharp spike in airfares – particularly to high-demand destinations like the UK.
Dubai Airports and Emirates airline regularly issue passenger advisories ahead of the summer rush, especially during July, when hundreds of thousands are expected to depart from Dubai.
Highest premium payers
Chauhan also highlighted that travellers aged 60 and above have experienced the steepest hike in insurance premiums, with rates rising between 25 per cent and 30 per cent. Meanwhile, those seeking coverage for adventure sports have faced the highest increases – up to 40 per cent more than standard base plans.
'Annual multi-trip policies have also become more expensive, with rates climbing over 15% due to evolving claim trends and longer average travel durations,' she added.
Hitesh Motwani, deputy CEO at said insurers are responding by offering more streamlined and budget-friendly plans to make travel insurance more accessible.
'These tailored policies allow travellers to choose coverage that fits their specific needs and financial plans. Despite the recent hikes, travel insurance remains relatively affordable on a per-trip basis,' Motwani said.
He pointed out that while not all countries require travel insurance for incoming travellers, many have made it mandatory for visa issuance or entry.
'For example, the Schengen zone requires a minimum medical coverage of €30,000, including repatriation. Thailand mandates insurance for specific visa categories, particularly long-term stays. Russia requires coverage for those applying through unified e-visas, and Turkey makes it a condition for visa applicants,' he explained.
