Travel insurance premiums in the UAE have risen by 12% to 18% year-on-year on average as summer -- the peak season for international travel -- approaches.
Ms Tushita Chauhan, head of general insurance at Policy Bazaar UAE, told the newspaper Khaleej Times that this translates to an increase of between AED15 ($4.08) and AED70 per policy, depending on the duration of travel, the destination, and the age of the traveller.
“The primary factors behind this increase include rising global medical costs and increased claims from travellers bound for Europe – particularly Schengen countries – largely due to hospitalisation and lost baggage,” she said.
She added that popular European destinations, such as France, Spain, and Italy, topped the list of medical emergency requests. Meanwhile, tropical destinations, such as Thailand, Bali, and the Maldives, saw a rise in flight cancellations due to weather disturbances.
Travellers from the UAE traveling to the UK and the US reported higher medical costs, contributing to higher insurance premiums. Missed flights and delayed baggage are the two most common claim categories among UAE residents this year.
Top insurance premium payers
Ms Chauhan said that travellers aged 60 and older saw the largest increases in insurance premiums, with prices rising by 25% to 30%. Meanwhile, those seeking coverage for adventure sports faced the highest increases, up to 40% more than standard basic insurance plans.
“Multi-trip annual policies have also become more expensive, with prices increasing by more than 15% due to evolving claims trends and longer average travel times,” she added.