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Saudi Arabia Travel Insurance Market Size (2024 - 2029)

The travel insurance market size in Saudi Arabia is anticipated to experience significant growth during the forecast period, driven by increasing tourism demands and government-supported travel policies. Despite the challenge of low insurance penetration, advancements in technology and the normalization of travel restrictions post-pandemic are expected to create new opportunities for market expansion. The rapid economic growth and the development of various industries in the region further contribute to the market's growth, as they encourage business-related travel and enhance the tourism sector.

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Market Size of Saudi Arabia Travel Insurance Industry

Saudi Arabia Travel Insurance Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 120.20 Million
Market Size (2029) USD 218.10 Million
CAGR (2024 - 2029) 10.48 %
Market Concentration Medium

Major Players

Saudi Arabia Travel Insurance Market Major Players

*Disclaimer: Major Players sorted in no particular order

Travel Insurance in Saudi Arabia Market Analysis

The Saudi Arabia Travel Insurance Market size in terms of gross written premiums value is expected to grow from USD 120.20 million in 2024 to USD 218.10 million by 2029, at a CAGR of 10.48% during the forecast period (2024-2029).

In 2022, According to Standard and Poor's (S&P), the turnover of the Saudi Travel Insurance Market is expected to grow by 5 to 10 %. The Saudi Arabia travel insurance market has witnessed a steady increase because of major key factors such as rising tourism demands after the pandemic. In addition to this, government-authorized travel policies are further increasing the growth of the travel insurance market. Though, the low penetration of insurance policies limits the growth of this market. On the other hand, new technological developments in the travel industry are expected to provide various opportunities for the development of the travel insurance market during the forecast period. In addition to this, travel and tourism within the Saudi Arabia region and the rapid economic growth of the region have resulted in the growth of the travel insurance industry in Saudi Arabia.

The growth of Travel Insurance is attributed owing to, travel restrictions being normalized post the COVID-19 pandemic and the travel industry gaining back its traction. In addition to this, the multi-trip travel insurance segment is expected to offer travelers appropriate insurance coverage to guarantee their annual vacations going smoothly which drives the growth of the market. Also, the development of multiple industries in the Saudi Arabia region encouraging business-related travel and the growing tourism industry is aiding the growth of the travel insurance market in this region.

Travel Insurance in Saudi Arabia Industry Segmentation

The report focuses on the complete background of the Saudi Arabia Travel Insurance Market, which comprises an assessment of the developing market trends by segments, important changes in the market dynamics, and a market overview. Saudi Arabia Travel Insurance Market is Segmented By Insurance Coverage (Single-Trip Travel Insurance, Annual Multi-trip Travel Insurance, and Others), By Distribution channels (Direct Sales, Online Travel Agents, Airports And Hotels, Brokers, and Other Insurance Intermediaries), and By End-User (Senior Citizens, Business Travelers, Family Travelers, and Others (Education Travelers, etc)). The report offers market size and forecast values for the Saudi Arabia Travel Insurance Market in USD million for the above segments.

By Insurance Coverage
Single-Trip Travel Insurance
Annual Multi-trip Travel Insurance
Others
By Distribution Channel
Direct Sales
Online Travel Agents
Airports And Hotels
Brokers
Other Insurance Intermediaries
By End-User
Senior Citizens
Business Travelers
Family Travelers
Others (Education Travelers, etc)
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Saudi Arabia Travel Insurance Market Size Summary

The travel insurance market in Saudi Arabia is poised for significant growth, driven by the resurgence of tourism and the normalization of travel post-pandemic. The market is experiencing an upward trajectory due to increased domestic and international travel, supported by government policies and technological advancements in the travel sector. The expansion of the multi-trip travel insurance segment is particularly noteworthy, as it offers comprehensive coverage for annual vacations, thereby enhancing market appeal. The economic diversification efforts by Saudi Arabia, including the expansion of pilgrimage facilities and the promotion of business-related travel, further bolster the demand for travel insurance. The presence of major religious sites and the annual Hajj pilgrimage play a crucial role in sustaining domestic travel, which is a key driver of the market's growth.

The competitive landscape of the Saudi Arabian travel insurance market is characterized by a few consolidated players, including Tawuniya, Al Rajhi Takaful, Walaa, Medgulf, and Axa Cooperative. These companies are actively engaging in strategic collaborations and technological innovations to enhance their service offerings and operational efficiencies. Notable developments include the merger between SABB Takaful and Walaa Insurance, and the partnership between eBaoTech Corporation and Walaa Cooperative Insurance Company to implement advanced digital solutions. These initiatives are aligned with the broader economic strategy of Saudi Arabia to diversify its revenue streams and adapt to global economic shifts, particularly in anticipation of a post-oil era.

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Saudi Arabia Travel Insurance Market Size - Table of Contents

  1. 1. INDUSTRY DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Insights on Various Regulatory Trends Travel Insurance Market in Saudi Arabia

    5. 1.5 Insights on Impact of Technology and Innovation in Operations in Travel Insurance

    6. 1.6 Insights on Performance of Travel Insurance in Saudi Arabia

    7. 1.7 Industry Attractiveness - Porter's 5 Force Analysis

      1. 1.7.1 Threat of New Entrants

      2. 1.7.2 Bargaining Power of Buyers/Consumers

      3. 1.7.3 Bargaining Power of Suppliers

      4. 1.7.4 Threat of Substitute Products

      5. 1.7.5 Intensity of Competitive Rivalry

    8. 1.8 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Insurance Coverage

      1. 2.1.1 Single-Trip Travel Insurance

      2. 2.1.2 Annual Multi-trip Travel Insurance

      3. 2.1.3 Others

    2. 2.2 By Distribution Channel

      1. 2.2.1 Direct Sales

      2. 2.2.2 Online Travel Agents

      3. 2.2.3 Airports And Hotels

      4. 2.2.4 Brokers

      5. 2.2.5 Other Insurance Intermediaries

    3. 2.3 By End-User

      1. 2.3.1 Senior Citizens

      2. 2.3.2 Business Travelers

      3. 2.3.3 Family Travelers

      4. 2.3.4 Others (Education Travelers, etc)

Saudi Arabia Travel Insurance Market Size FAQs

The Saudi Arabia Travel Insurance Market size is expected to reach USD 120.20 million in 2024 and grow at a CAGR of 10.48% to reach USD 218.10 million by 2029.

In 2024, the Saudi Arabia Travel Insurance Market size is expected to reach USD 120.20 million.

Travel Insurance Market in Saudi Arabia Report Snapshots

Travel Insurance Market in Saudi Arabia Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)