Saudi Arabia Travel Insurance Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Saudi Arabia Travel Insurance Market has generated a revenue of USD 573.71 million in the current year and is poised to achieve a CAGR of 10.48% for the forecast period.

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.

Saudi Arabia Travel Insurance Market Trends

Increasing Domestic Travel is Driving the Market

The growing number of domestic travelers every year is emerging as one of the major driving factors for the development of the Saudi Arabia travel insurance market. The larger percentage of these domestic travels are mostly for business and religious purposes. Moreover, the presence of Mecca and Madinah, 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 affects the number of domestic travels in Saudi Arabia.

Hajj Pilgrims are driving the Travel Insurance Market in Saudi Arabia

Over the years, oil has helped Saudi Arabia accrue trillions of wealth, but as the globe switches to alternative energy sources, the oil will eventually run out or lose value. The kingdom is aware of this, despite the high price of oil today, and has started a large-scale project to diversify its revenue streams in preparation for a world without oil. One of these is the pilgrimage, an unending monopoly with a potential Muslim market of around two billion people.

The Grand Mosque in Mecca is being enlarged by Saudi Arabia as part of a $21 billion initiative to accommodate 300,000 more worshipers. A year later, Mohammed bin Salman, who was the deputy crown prince at the time, recognized the pilgrimage as a crucial element of a strategy to diversify the Saudi economy by forecasted period

After a two-year break brought on by Covid-19 restrictions, Muslims from all over the world return to Saudi Arabia to conduct the yearly Hajj trip.

Saudi Arabia Travel Insurance Market Competitor Analysis

The report comprises an overview of the top players in the travel insurance market operating across Saudi Arabia. The Saudi Arabia travel insurance market is slightly different than in other Gulf Countries. The Saudi Arabia travel insurance market is characterized by nearly consolidated players. It has major players Tawuniya, Al Rajhi Takaful, Walaa, Medgulf and Axa Cooperative

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• The market estimate (ME) sheet in Excel format
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