Fintech market sees a surge in UAE residents buying travel insurance

Fintech market sees a surge in UAE residents buying travel insurance

One company has seen a 150% increase in travel insurance policy sales

One of the year's biggest travel trends in the UAE has been the increase in travel insurance policy purchases. 

Experts says that travellers are buying travel insurance to shield against not only Covid-19 issues but also baggage loss as chaos spreads across the world's leading airports. 

In addition, evidence of travel insurance is now mandatory at some tourist venues and destinations., an online marketplace for travel insurance and other financial products, has reported a significant rise in demand for travel insurance in the UAE in FY21-22. 

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The fintech company saw a 150% increase in sale of travel insurance policies sales between Q1 and Q2 in 2022. 

The global travel insurance market size was valued at US$12.38 billion in 2020, and is projected to reach US$119.31 billion by 2030. This translates as a compound annual growth rate of 26.1% from 2021 to 2030. 

The other reason for the increase in the sale of travel insurance policies is due to a knock-on effect on luggage mishandling due to the acute shortage of baggage handlers at the airports.

Delayed or lost check-in baggage is one of the most common issues faced by travellers. The most recent data published by the US Department of Transportation shows six-figure numbers of incidences relating to baggage in just one month.

Nearly 220,000 bags were "mishandled" by US airlines in April 2022, meaning they were lost, damaged, delayed or stolen

Travellers on inter-connected flights face even greater risk with luggage being left behind due to staff shortages. 

Having a travel insurance policy may not be mandatory for tourists in all the countries, but it is always recommended to have one when traveling abroad. Travel insurance policies compensate travellers from undue expenses in situations of a medical emergency, personal liability and emergencies, including the loss and delay of baggage. CEO Neeraj Gupta said: "One thing the pandemic has taught us is to take necessary precautions and we will see a rise in travel insurance especially for Covid or unexpected medical costs,  and loss or delay of baggage. Baggage coverage is a very important benefit within travel insurance plans, as it can provide monetary assistance when things go wrong. Hence, it would be wise for people to have a comprehensive travel insurance policy to enjoy a hassle-free trip.”

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