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Saudi Arabia Travel Insurance Market

Saudi Arabia Travel Insurance Market, By Insurance Cover (Single-Trip Travel Insurance, Annual Multi-Trip Travel Insurance, Long-Stay Travel Insurance), By Distribution Channel (Insurance Intermediaries, Insurance Companies, Banks, Insurance Brokers, Insurance Aggregators), By End User (Senior Citizens, Education Travelers, Business Travelers, Family Travelers, Others) Trend Analysis, Competitive Market Share & Forecast, 2018-2028

  • Published Date: May 2022
  • Report ID: BWC22168
  • Available Format: PDF
  • Page: 114

Report Overview

The Saudi Arabia travel insurance market is growing owing to the flourishing tourism in the country, mainly because of religious purposes and high purchasing power of the consumers along with increasing risks of incidents such as accidents, baggage loss, trip cancellations, along with rising integration of advanced technologies such as Internet of Things (IoT)...

Saudi Arabia Travel Insurance Market- Industry Trends & Forecast Report 2028

The Saudi Arabia travel insurance market is anticipated to grow at the CAGR of 6.1% during the forecast period 2022 - 2028. The flourishing tourism in the country, mainly because of religious purposes and high purchasing power of the consumers in this region acts as a major driving factor for the Saudi Arabia travel insurance market. Furthermore, increasing risks of incidents such as accidents, baggage loss, trip cancellations, along with rising integration of advanced technologies such as Internet of Things (IoT), artificial intelligence (AI), machine learning, etc., is also flourishing the market growth.

Saudi Arabia Travel Insurance - Overview

Travel insurance is the type of insurance that covers the cost of losses during travels, both domestically and internationally. These ‘losses’ include trip cancellation and delay due to sickness, medical expenses, loss and theft of baggage and passport, emergency evacuation expenses, loss or damage to property or injury to a person. The insured can also claim different types of medical bills such as minor injury or illness overseas, coverage for visits to general practitioners, medicine, ambulance fees, and limited dentistry benefits.

Saudi Arabia Travel Insurance Market Forecast and Trends

Growth Drivers

Flourishing Domestic Travel in Saudi Arabia

The increasing number of domestic travels annually is emerging as one of the major driving factors for the growth of the Saudi Arabia travel insurance market. The larger percentage of these domestic travels are mostly for business and religious purposes. Furthermore, the presence of Mecca, the holiest of Muslim cities, and travel for the hajj, the annual Islamic pilgrimage to Mecca is a mandatory religious duty for Muslims also directly influences the number of domestic travels in Saudi Arabia.

Favorable Government Initiatives and Policies

The Saudi government tightened the travel insurance regulations and policies post the COVID-19 outbreak to ensure the safety of the citizens. According to a report published in Arab News, Saudis are required to receive their travel health insurance 24 hours prior to their departure as part of recommendations by the Council of Cooperative Health Insurance (CCHI). Furthermore, CCHI and other relevant authorities are providing additional protection for Saudis during their international travels. This regulation is anticipated to drive the Saudi Arabia travel insurance market.

Restraints

Lack Of Consumer Awareness and Bad Reputation of Insurance Claims

The lack of consumer awareness regarding the availability of travel insurance and its benefits acts as a major hindrance for the growth of the Saudi Arabia travel insurance market. Even if the travelers are aware, they are either too unsure where they can avail these policies or have negative biases against them. These negative biases emerge from lengthy legal formalities involved in claiming insurance. Furthermore, high premium rates are also one of the factors that restrain the travel insurance market growth in Saudi Arabia.

Impact of COVID-19 on Saudi Arabia Travel Insurance Market

The Saudi Arabia travel insurance market was negatively impacted by the unprecedented COVID-19 pandemic outbreak. This is because the travel and tourism sector is the worst affected industry in the country. The citizens were advised to postpone and cancel their travel plans, both domestic and international. The airports were closed for foreign visitors as well in the risk of COVID-19 transmission. All business and religious trips were also barred during this period to prevent the chances of community spread. This resulted in a significant decline in the demand for travel insurance among Saudi citizens, incurring huge losses to travel insurance companies and providers.

Saudi Arabia Travel Insurance Market - By Insurance Cover

Based on insurance cover, the Saudi Arabia travel insurance market is segmented into single-trip travel insurance, annual multi-trip travel insurance, and long-stay travel insurance. The single-trip travel insurance segment holds the largest market share as it offers a wide range of coverage. This type of insurance covers medical bills including repatriation and medical evacuation, emergency dental treatment costs, loss of checked-in baggage.

Saudi Arabia Travel Insurance Market - By Distribution Channel

Based on the distribution channel, the Saudi Arabia travel insurance market is segmented into insurance intermediaries, insurance companies, banks, insurance brokers, and insurance aggregators. The insurance intermediaries account for the largest market share. Individual agents, corporate agents, including banks and brokers come under this segment. Most insurance seekers, especially first-timers, often look for the safest option to buy travel insurance that has higher chances of claims. Therefore, they generally opt for these insurance intermediaries, which drives their market growth.

Saudi Arabia Travel Insurance Market - By End-User

Based on end-users, the Saudi Arabia travel insurance market is segmented into senior citizens, education travelers, business travelers, family travelers, and others. The business traveler segment accounts for the largest market share. Several organizations in Saudi Arabia provide travel insurance to their employees during business trips to prevent the chances of any casualties. This has become even more prominent post the COVID-19 outbreak to prevent other employees from COVID-19 infection and safe return to work.

Competitive Landscape

The leading market players of the Saudi Arabia travel insurance market are Company for Cooperative Insurance (Tawuniya), Al Rajhi Takaful Insurance, Walaa Cooperative Insurance Co, Travel Guard, Mediterranean and Gulf Cooperative Insurance and Reinsurance Company (MEDGULF), Allianz SE, Bupa Arabia, Malath Cooperative Insurance Co., Saudi Arabian Cooperative, Arabia Insurance Cooperative Co, Al Etihad Cooperative Insurance Co SJSC, and other prominent players.

The market is highly fragmented with the presence of various public and private insurance providers. The companies launch new insurance policies and plans that suit various different needs of travelers. They also offer customized travel insurance policies to boost their sales. Furthermore, the adoption of competitive strategies such as partnerships, mergers, acquisitions, collaborations, etc., is also prominent in this market.

Recent Development

  • In May 2021, the Saudi Central Bank and the Council of Cooperative Health Insurance announced the approval of a new travel insurance product for Saudi citizens traveling abroad that includes benefits that cover Coronavirus (Covid-19) infections risks.

Scope of the Report

Attributes Details
Years Considered Historical data – 2018-2021
Base Year – 2021
Forecast – 2022 – 2028
Facts Covered Revenue in USD Billion
Product Service/Segmentation By Insurance Cover, By Distribution Channel, By End User
Key Players Company for Cooperative Insurance (Tawuniya), Al Rajhi Takaful Insurance, Walaa Cooperative Insurance Co, Travel Guard, Mediterranean, and Gulf Cooperative Insurance and Reinsurance Company (MEDGULF), Allianz SE, Bupa Arabia, Malath Cooperative Insurance Co., Saudi Arabian Cooperative, Arabia Insurance Cooperative Co, Al Etihad Cooperative Insurance Co SJSC, and other prominent players.

 

By Insurance Cover

  • Single-Trip Travel Insurance
  • Annual Multi-Trip Travel Insurance
  • Long-Stay Travel Insurance

By Distribution Channel

  • Insurance Intermediaries
  • Insurance Companies
  • Banks
  • Insurance Brokers
  • Insurance Aggregators

By End User

  • Senior Citizens
  • Education Travelers
  • Business Travelers
  • Family Travelers
  • Others
  1. Research Framework
    1. Research Objective
    2. Type Overview
    3. Market Segmentation
  2. Research Methodology
    1. Qualitative Research
      1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
    4. Breakdown of Primary Research Respondents, By Region
    5. Assumption & Limitation
  3. Executive Summary
  4. Saudi Arabia Travel Insurance Market Insights
    1. Industry Value Chain Analysis
    2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
    3. Technological Landscape/Recent Development
    4. Regulatory Framework
    5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
  5. Saudi Arabia Travel Insurance Market Overview
    1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
    2. Market Share & Forecast
      1. By Coverage Type
        1. Annual Multi-Trip
        2. Single-Trip
      2. By Distribution Channel
        1. Insurance Intermediaries
        2. Insurance Companies
        3. Banks
        4. Insurance Brokers
        5. Insurance Aggregators
      3. By End User
        1. Family Travelers
        2. Business Travelers
        3. Senior Citizens
        4. Education Travelers
        5. Others
  6. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Market Share Analysis, 2021
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Development (Merger, Acquisition, Partnership.)
  7. Impact of COVID-19 on Saudi Arabia Travel Insurance Market Industry
  8. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) **.
    1. Air Arabia
    2. Arabia Insurance Cooperative Company
    3. AXA Cooperative Insurance Company
    4. Allianz Group
    5. TAWUNIYA INSURANCE COMPANY
    6. Bupa Arabia
    7. Al-Nisr Al-Arabi Company
    8. AL SAGR Insurance
    9. Arab Cooperative Insurance Company
    10. Other Prominent Players

 

  1. Key Strategic Recommendations

 

List of Figures

 

Figure 1        Saudi Arabia Travel Insurance Market Segmentation

Figure 2        Saudi Arabia Travel Insurance Market Value Chain Analysis

Figure 3        Porter’s Five Forces Analysis

Figure 4        Company Market Share Analysis, 2021

Figure 5        Saudi Arabia Travel Insurance Market Size, By Value (USD Million), 2018-2028

Figure 6        Saudi Arabia Travel Insurance Market Share, By Coverage Type, By Value, 2018-2028

Figure 7        Saudi Arabia Travel Insurance Market Share, By Distribution Channel, By Value, 2018-2028

Figure 8        Saudi Arabia Travel Insurance Market Share, By End User, By Value, 2018-2028

 

List of Tables

 

Table 1 Saudi Arabia Travel Insurance Market Size, By Coverage Type, By Value, 2018-2028

Table 2  Saudi Arabia Travel Insurance Market Size, By Distribution Channel, By Value, 2018-2028

Table 3  Saudi Arabia Travel Insurance Market Size, By End User, By Value, 2018-2028

Table 4  Key Players and Their Offerings

Table 5  Competitive Benchmarking, By Operating Parameters

Table 6  Merger Acquisition, Partnership, Joint-Ventures etc.

Table 7  Air Arabia Company Overview

Table 8  Arabia Insurance Cooperative Company Overview

Table 9  AXA Cooperative Insurance Company Overview

Table 10               Allianz Group Company Overview

Table 11               TAWUNIYA INSURANCE Company Overview

Table 12               Bupa Arabia Company Overview

Table 13               Al-Nisr Al-Arabi Company Overview

Table 14               AL SAGR Insurance Company Overview

Table 15               Arab Cooperative Insurance Company Overview

 

*Financial information in case of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

 

Market Segmentation

By Insurance Cover

  • Single-Trip Travel Insurance
  • Annual Multi-Trip Travel Insurance
  • Long-Stay Travel Insurance

By Distribution Channel

  • Insurance Intermediaries
  • Insurance Companies
  • Banks
  • Insurance Brokers
  • Insurance Aggregators

By End User

  • Senior Citizens
  • Education Travelers
  • Business Travelers
  • Family Travelers
  • Others
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