Market Trends of Middle East and Africa Travel Insurance Industry
This section covers the major market trends shaping the MEA Travel Insurance Market according to our research experts:
A Tech Savvy Demography Drives the Market
The role of technology in the distribution of travel insurance in the MEA region appears to be significant. Direct mobile purchases had begun to supplant the more traditional method of consulting a broker to find the best travel insurance options. When it comes to booking travel, more than half of Middle Eastern travellers believe technology has empowered them. After all, digital channels provide travel insurers with an additional means of reaching out to prospective customers. Technology makes care and the claims process more accessible, efficient, and transparent. Making the compensation procedure effective, simple, and quick, benefits both the insurance company and the patient. Digitising the claims management process will also help eliminate any human errors and ensure the accuracy and safety of all data. Improved customer assistance can surely only help to encourage new customers and retain existing ones.
Schengen Visa Requirements Govern the Travel Insurance Market
There is a direct market for travel insurance in MEA, but overall penetration remains low due to a lack of awareness and appreciation of the need for travel insurance products in this region, particularly when compared to other, more mature insurance markets. The requirement for travel insurance as prescribed by Schengen visa applications is the main driver of travel insurance purchasing in the MEA region. According to the travel preferences of Middle Eastern travellers specifically, 64% of Middle Eastern travellers had travelled internationally in the previous 12 months in 2018, with a significant number of these individuals travelling internationally heading to Europe (27% ).
When it comes to outbound travel, single-trip policies and those that meet Schengen visa requirements are frequently the most popular travel insurance products. Schengen products are likely to account for half of all products sold. However, compared to other geographic regions, travel insurance may continue to be underutilised. The region's travel rates improved as oil prices fell. Rising travel rates and spending, particularly in the Middle East, are expected to increase demand for travel insurance.
