UAE/ Travel Insurance Costs Soar: Double-Digit Premium Hikes Represent Significant Expansion
Kickback: Hiking Travel Insurance Premiums Putting a Dent in UAE Savings
Brace yourself, UAE travelers! With summer just around the corner, those dreaming of escaping the scorching heat for a European getaway are about to feel the sting. Inbound travel insurance rates have seen a sharp surge, leaving vacationers to shell out more for their peace of mind.
Experts in the industry are pointing fingers at a perfect storm of factors pushing up travel insurance premiums. Toshita Chauhan, Business Head - General Insurance at Policybazaar UAE, has witnessed an increase of 12% to 18% year-on-year, translating to an average of Dh32.50 per policy. This hike doesn't take into account destination, travel duration, or the age of travelers—all factors contributing to the final premium.
So, what’s driving this financial tsunami? According to Chauhan, the main culprits are escalating global medical costs and a spike in claims from Europe-bound travelers, particularly those heading to Schengen countries, where hospitalization rates are high and lost baggage is commonplace[1].
It’s no surprise that popular European destinations like France, Spain, and Italy lead the way in medical emergency claims. Meanwhile, tropical paradises such as Thailand, Bali, and the Maldives have seen an upswing in trip cancellations due to weather-related disruptions.
Travelers venturing off to the UK and the USA are footing some of the highest medical treatment costs, adding fuel to the premium inflation[1]. Missed flight connections and baggage delays have also emerged as the two most common claim categories among UAE residents this year[1].
Sunshine Retreat or Stormy Sojourn?
Summer is widely recognized as the peak travel period for UAE locals, coinciding with extended school holidays lasting two months. Many families opt for vacations in cooler European climates during this time, leading to a significant bump in airfares—especially to high-demand destinations like the UK. Dubai Airports and Emirates regularly issue passenger advisories ahead of the summer rush, especially during July, when a tourist exodus of hundreds of thousands is expected from Dubai[3].
Age and Adventure: Premium Categories on the Rise
Chauhan also emphasized that travelers aged 60 and above have experienced the steepest hike in insurance premiums, with rates climbing between 25% and 30%. Adventure enthusiasts pursuing thrilling activities have also faced increased premiums—up to 40% more than standard plans[1].
Annual multi-trip policies have also become more expensive, with rates skyrocketing over 15% due to evolving claim trends and longer average travel durations[1]. However, insurers are becomes more budget-conscious by offering tailored policies for travelers to choose coverage that fits their needs and financial plan[2].
It's All About Planning Ahead
No one wants to spoil their vacation with the burden of high insurance rates, but it’s crucial to weigh the costs and benefits before embarking on your journey. Be sure to research the entry requirements of your destination and prioritize official sources for the most accurate information. By planning ahead and making informed choices, you can protect your wallet and ensure a worry-free vacation.
Are you a seasoned traveler with insider tips on navigating the pricey travel insurance market? Share your secrets with us in the comments below!
Sources:
- Ahmed, M. (2023, June 6). Travel insurance premiums increase as medical and baggage claims surge. The National. https://www.thenationalnews.com/business/travel/2023/06/06/travel-insurance-premiums-increase-as-medical-and-baggage-claims-surge/
- Khatri, P. (2023, June 8). Traveling this summer? Heres what to expect with your travel insurance in the UAE. Gulf News. https://gulfnews.com/life-style/travel/travel-tips/traveling-this-summer-heres-what-to-expect-with-your-travel-insurance-in-the-uae-1.1686172244632
- (2023, June 7). Dubai Airports, Emirates issue summer rush passenger advisories. Khaleej Times. https://www.khaleejtimes.com/news/region/dubai-airports-emirates-issue-summer-rush-passenger-advisories
- The spike in travel insurance premiums could affect those planning a European getaway, with increased costs making a dent in UAE savings.
- Tropical destinations like Thailand, Bali, and the Maldives have seen an increase in trip cancellations due to weather-related disruptions.
- Medical emergency claims in popular European destinations such as France, Spain, and Italy are leading causes of high travel insurance costs.
- Travelers to the UK and USA face some of the highest medical treatment costs, contributing to the inflation of travel insurance premiums.
