Dublin, Jan. 02, 2025 (GLOBE NEWSWIRE) -- The "Saudi Arabia Travel Insurance Market, By Region, Competition, Forecast and Opportunities, 2019-2029F" report has been added to ResearchAndMarkets.com's offering.
The Saudi Arabia Travel Insurance Market was valued at USD 856.15 Million in 2025, and is expected to reach USD 2.17 Billion by 2029, rising at a CAGR of 16.65%.
The travel insurance market in Saudi Arabia is rapidly evolving, reflecting the nation's commitment to becoming a leading global tourism destination. This growth is largely fueled by the government's Vision 2030 initiative, which aims to diversify the economy by enhancing tourism infrastructure and attracting international visitors. The market is characterized by a variety of insurance products, including trip cancellation, medical coverage, baggage loss, and personal liability.
Increasing awareness of travel-related risks, especially following the global pandemic, has led consumers to seek comprehensive insurance solutions that provide peace of mind. Digital transformation is also reshaping the landscape, with more travelers opting to purchase policies online through user-friendly platforms. This shift allows for easier comparison and selection of coverage tailored to individual needs. Additionally, significant demand arises from the influx of pilgrims during Hajj and Umrah, necessitating specialized travel insurance products. Overall, the Saudi Arabia travel insurance market presents substantial opportunities for growth, innovation, and improved customer experiences as the tourism sector continues to expand.
In 2023, the Saudi Cabinet approved the establishment of a new unified and independent regulator for the insurance sector in the Kingdom. The Cabinet also sanctioned the founding law of the Authority, outlining its mandate and powers. This development signifies a major transformation in the insurance landscape of the Kingdom, as the Authority is now the sole regulator of the insurance sector.
Previously, the Saudi Central Bank (SAMA) and the Council of Health Insurance (CHI) shared regulatory responsibilities, having established the existing legal framework. The consolidation of regulatory oversight from two entities to one reflects the country's commitment to achieving the goals of Saudi Vision 2030 and the Financial Sector Development Program (FSPD). A key component of this initiative is fostering growth and advancing the insurance sector. The Authority has already reported a 14.6% growth in the sector during the third quarter of 2023, and this growth is expected to continue into 2024 as the Authority becomes fully operational and implements a new legal framework.
Key Market Trends
Digital Transformation
The digital transformation of the insurance sector is a prominent trend in the Saudi Arabia travel insurance market. With the rise of technology, consumers now expect seamless online experiences when purchasing travel insurance. Insurers are increasingly investing in user-friendly digital platforms that allow travelers to compare policies, obtain quotes, and purchase coverage with ease. Mobile applications and websites are being enhanced to facilitate instant access to information, making it more convenient for travelers to secure the protection they need.Additionally, the integration of artificial intelligence and data analytics is enabling insurers to offer personalized products based on individual travel habits and preferences.
This technological advancement not only improves customer engagement but also streamlines the claims process, making it faster and more efficient. Insurers can leverage data to assess risks more accurately, leading to better pricing strategies. As digital channels become more popular, traditional distribution methods are being supplemented or replaced, pushing the industry toward a more tech-driven future. This shift not only broadens market access but also enhances competition, driving innovation and ultimately benefiting consumers with improved service and offerings.
Customization of Insurance Products
Another significant trend in the Saudi Arabia travel insurance market is the customization of insurance products. As travelers become more aware of their unique needs and risks, insurers are responding by offering tailored solutions that cater to specific demographics and travel purposes. This trend is particularly evident among frequent travelers, business travelers, and those undertaking religious pilgrimages, such as Hajj and Umrah. Insurers are now providing flexible policies that allow customers to select coverage options that best suit their circumstances.
For example, travelers can customize their plans to include features like medical coverage, trip cancellation, or coverage for adventure activities. This level of personalization not only enhances the customer experience but also helps insurers capture a broader audience by addressing specific concerns that standard policies may overlook. As consumers increasingly seek more comprehensive and relevant protection, the demand for customized travel insurance products is expected to rise. This trend encourages insurers to innovate continually and refine their offerings, ensuring they meet the evolving needs of a diverse traveler population.
Segmental Insights
Trip Type Insights
Inbound travel insurance was the dominant segment in the Saudi Arabia travel insurance market, driven by the country's position as a key global destination for religious, business, and leisure travel. Saudi Arabia attracts millions of international visitors each year, particularly for religious tourism, with the annual Hajj pilgrimage drawing a significant number of Muslims from around the world. This influx of travelers creates a strong demand for comprehensive travel insurance coverage, which often includes protection for medical emergencies, trip cancellations, lost baggage, and other travel-related risks.
Furthermore, Saudi Arabia is a hub for business tourism due to its growing economy and status as a leader in sectors like oil and gas, as well as finance. International business travelers increasingly seek insurance policies that offer coverage for unforeseen circumstances such as medical treatment, delayed flights, or travel disruptions. The dominance of inbound tourism insurance is also supported by the rise in leisure travel, with tourists coming to explore the country's cultural heritage, historical sites, and modern attractions. Given these factors, inbound travel insurance remains crucial in the Saudi market, as it offers both protection for international travelers and caters to the broader tourism and business sectors, reinforcing its prominent role.
Regional Insights
The Western region of Saudi Arabia is the dominating segment in the travel insurance market, largely due to its pivotal role as a hub for religious tourism, particularly during the Hajj and Umrah pilgrimages. Cities like Mecca and Medina attract millions of visitors each year, creating a substantial demand for tailored travel insurance products that address the unique needs of pilgrims.
Additionally, the Western region's growing popularity as a tourist destination, with attractions like historical sites and cultural festivals, further boosts the need for travel insurance among both domestic and international travelers. Insurers are responding by offering specialized policies that include coverage for medical emergencies, trip cancellations, and baggage loss, ensuring comprehensive protection for travelers. As the region continues to expand its tourism infrastructure and attract diverse visitors, the Western region is set to maintain its dominant position in the Saudi travel insurance market.
Key Market Players
- Tawuniya Insurance Company
- Al-Rajhi Company for Cooperative Insurance
- Walaa Cooperative Insurance Company
- Allianz Saudi Fransi Cooperative Insurance Company
- Gulf Insurance Group (GIG)
- Arabian Shield Cooperative Insurance Company
- Gulf General Cooperative Insurance Company
- LIVA Insurance Company
- SALAMA Cooperative Insurance Company
- AL-Etihad Cooperative Insurance Company
Report Scope:
In this report, the Saudi Arabia Travel Insurance Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below::
Saudi Arabia Travel Insurance Market, By Trip Type:
- Domestic
- Outbound
- Hajj and Umrah
- Inbound
Saudi Arabia Travel Insurance Market, By Mode Of Purchase:
- Airline
- Banks
- Online Travel Agencies
- Offline Travel Agencies
- Others
Saudi Arabia Travel Insurance Market, By Traveler Type:
- Senior Citizens
- Education Travelers
- Business Travelers
- Family Travelers
- Independent Travelers
Saudi Arabia Travel Insurance Market, By Mode of Payment:
- Card Payments
- E-Wallets
- Bank Transfers
- Other Online Payment
Saudi Arabia Travel Insurance Market, By Region:
- Northern & Central
- Western
- Southern
- Southern
For more information about this report visit https://www.researchandmarkets.com/r/v4hp90
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