Saudi Arabia Travel Insurance Market

Market Overview:

Saudi Arabia travel insurance market size reached USD 118.9 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 286.6 Million by 2033, exhibiting a growth rate (CAGR) of 9.2% during 2025-2033. The rising number of travel and tourism activities for leisure, business, and religious purposes is primarily driving the market growth.

Travel insurance is a financial product designed to provide protection and coverage for travelers when unexpected events or emergencies occur before or during a trip. It typically offers a range of benefits, including medical coverage for illnesses or injuries that may happen while traveling, trip cancellation or interruption coverage in case plans are disrupted, coverage for lost or delayed baggage, and other related benefits. Travel insurance policies can be tailored to suit different types of travel, whether it's for leisure, business, or adventure. Travelers purchase these policies to mitigate financial risks and ensure peace of mind while away from home, as they offer assistance and financial support in unforeseen situations, such as medical emergencies, travel delays, or trip cancellations. The specific coverage and terms can vary widely between policies and insurance providers, allowing travelers to choose the level of protection that best suits their needs and preferences.

Saudi Arabia Travel Insurance Market Trends:

Advancements in Insurance Technology

The combination of artificial intelligence (AI), data analytics, and machine learning (ML) enables insurance companies to deliver more tailored services, enhancing risk evaluations, claims handling, and pricing precision. These technologies enhance the insurance experience, allowing quicker responses to claims and more effective management of client questions. Moreover, mobile applications and online platforms are enhancing the accessibility of travel insurance by providing features, such as real-time policy updates, immediate claim submissions, and convenient premium payments. The ease of handling insurance via smartphones and various digital platforms is attracting a wider range of users, particularly younger, tech-oriented travelers. This technological advancement is not only enhancing operational effectiveness but also reshaping client expectations, rendering travel insurance a crucial and easily manageable aspect of the travel experience for an increasing number of individuals in Saudi Arabia.

Rise in Corporate and Business Travel

With Saudi Arabia improving its position as a worldwide trade center and drawing more international investments, the volume of corporate travel is consistently increasing. In reaction, companies are progressively including travel insurance in their corporate travel offerings to protect employees from various risks, such as medical emergencies, trip interruptions, cancellations, and lost luggage. This pattern is anticipated to persist as businesses broaden their activities on both regional and global scales. In 2024, Saudi Arabia's corporate travel sector attained a worth of USD 10.2 billion, emphasizing the increasing need for all-encompassing travel insurance coverage. As a result, insurance companies are providing customized policies designed for corporate travelers, covering both health concerns and business-related hazards. This rising demand for corporate travel insurance is contributing to the overall growth of the travel insurance market in the kingdom.

Expansion of International Airline Networks

The growth of international airline routes linking Saudi Arabia to more global locations is positively influencing the travel insurance market. In 2024, Rashed Al-Shammari, Deputy CEO for Commercial Affairs at the Air Connectivity Program, emphasized the importance of the Routes World 2024 conference in showcasing the kingdom's tourist attractions. By 2030, the initiative plans to create more than 250 direct air routes, enhancing tourism and addressing the rising need for travel insurance. As direct flights become more common and competition among airlines intensifies, international travel is turning into a more accessible and cost-effective option. As a result, both local and international tourists are traveling more often, driving the need for travel insurance that protects against risks, such as flight delays, cancellations, and health emergencies. Insurance companies are modifying their services to add more coverage for air travel interruptions, which is contributing to the market growth.

Saudi Arabia Travel Insurance Market Growth Drivers:

Expansion of Low-Cost Travel Options

The increase in affordable travel choices is driving the expansion of the travel insurance market in Saudi Arabia. With budget airlines and inexpensive travel deals becoming easily available, more travelers are discovering both local and overseas locations. Though these budget choices provide cost-effectiveness, they frequently involve heightened risks like flight delays, fewer amenities, and diminished client support. These obstacles are driving the need for travel insurance that protects against unforeseen occurrences such as trip cancellations, lost baggage, and health emergencies. Travelers seeking affordable travel experiences are becoming more aware about the importance of securing comprehensive insurance. In line with this, in 2024, Tree Digital Insurance Agency launched “Explorer Start,” a budget-friendly travel insurance product in Saudi Arabia. It offered coverage for luggage loss, health emergencies, and flight delays, with region-specific pricing. The policy can be purchased instantly via mobile for individuals or families.

Growing Inbound Tourism

The travel insurance market in Saudi Arabia is witnessing considerable expansion, propelled by an increase in inbound tourism linked to the Vision 2030 initiative. The initiative aims to broaden the economy by establishing Saudi Arabia as a prominent international tourism hub, diminishing its dependence on oil exports. As a result, there has been a steady influx of international visitors for religious pilgrimages, leisure, and business travel, catalyzing the demand for travel insurance. Travelers are progressively looking for protection against different risks like medical emergencies, canceled trips, and misplaced baggage. In 2024, the Ministry of Tourism announced that 17.5 million international tourists visited from January to July, experiencing a 656% rise in visitors coming for leisure and vacation activities. This growing number of visitors is leading to an increased demand for travel insurance products, aligning with the kingdom's rising tourism profile.

Government Regulations and Mandates

Government regulations are crucial in influencing the development of Saudi Arabia’s travel insurance sector. In alignment with its comprehensive plan to boost the tourism industry, the Saudi governing body is enacting regulations requiring travel insurance for international travelers. These regulations guarantee that travelers, especially those involved in planned travel activities, are adequately safeguarded against hazards like medical emergencies, cancellations, and other unexpected occurrences. Through the implementation of these mandates, the governing authority is catalyzing the demand for travel insurance offerings. Insurance companies are adapting to this change by creating specialized products designed to address the unique requirements of these travelers, guaranteeing that the coverage is both relevant and comprehensive. The regulatory framework established by the governing body serves as a crucial factor for both immediate growth and enduring sustainability within the travel insurance industry in the kingdom.

Saudi Arabia Travel Insurance Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on insurance coverage, distribution channel, and end user.

Insurance Coverage Insights:

• Single-trip Travel Insurance
• Annual Multi-trip Travel Insurance
• Others

The report has provided a detailed breakup and analysis of the market based on the insurance coverage. This includes single-trip travel insurance, annual multi-trip travel insurance, and others.

Distribution Channel Insights:

• Direct Sales
• Online Travel Agents
• Airports and Hotels
• Brokers
• Others

A detailed breakup and analysis of the market based on the distribution channel have also been provided in the report. This includes direct sales, online travel agents, airports and hotels, brokers, and others.

End User Insights:

• Senior Citizens
• Business Travelers
• Family Travelers
• Others

The report has provided a detailed breakup and analysis of the market based on the end user. This includes senior citizens, business travelers, family travelers, and others.

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Latest News and Developments:

• In March 2025, Saudi budget airline flyadeal launched affordable travel insurance starting at SAR12 ($3) in partnership with Tawuniya. The coverage includes medical emergencies, trip cancellations, and baggage loss. This initiative supports flyadeal’s broader expansion with new summer routes and a growing fleet.
• In February 2025, almatar Group announced a strategic partnership with Tawuniya during LEAP 2025 to offer integrated travel insurance via the almatar app. This allows users to add insurance when booking flights, enhancing safety and convenience. The initiative aligns with Saudi Vision 2030’s digital tourism goals.
• In October 2024, the Saudi Red Sea Authority and the Insurance Authority signed an agreement to launch Saudi Arabia's first insurance products for coastal tourism activities. The initiative supported marine tourism growth and investment in line with Vision 2030. It covered activities like diving, boating, and surfing through local insurers.

Saudi Arabia Travel Insurance Market Report Coverage:

Key Questions Answered in This Report:

• How has the Saudi Arabia travel insurance market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Saudi Arabia travel insurance market?
• What is the breakup of the Saudi Arabia travel insurance market on the basis of insurance coverage?
• What is the breakup of the Saudi Arabia travel insurance market on the basis of distribution channel?
• What is the breakup of the Saudi Arabia travel insurance market on the basis of end user?
• What are the various stages in the value chain of the Saudi Arabia travel insurance market? 
• What are the key driving factors and challenges in the Saudi Arabia travel insurance?
• What is the structure of the Saudi Arabia travel insurance market and who are the key players?
• What is the degree of competition in the Saudi Arabia travel insurance market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia travel insurance market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia travel insurance market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia travel insurance industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.