UAE: Travel insurance premiums see double-digit increase
Toshita Chauhan, business head – general insurance at Policybazaar UAE, said premiums have risen by 12 per cent to 18 per cent year-on-year. This translates to an increase of Dh15 to Dh70 per policy, depending on the travel duration, destination, and age of the travellers.
"The primary factors driving this increase include rising global medical costs and a spike in claims from Europe-bound travellers - especially to Schengen countries - largely due to hospitalizations and baggage losses," Chauhan told Khaleej Times.
She noted that popular European destinations such as France, Spain, and Italy are leading in medical emergency claims. Meanwhile, tropical destinations like Thailand, Bali, and the Maldives have seen a rise in trip cancellations due to weather-related disruptions.
Travellers from the UAE heading to the UK and USA are reporting some of the highest medical treatment costs, contributing to elevated premiums. While missed flight connections and baggage delays have also emerged as the two most common claim categories among UAE residents this year, she added.
Summer rush
Summer is the peak travel period for outbound UAE tourism, coinciding with school holidays that last over two months. Many families opt for vacations in cooler European climates during this time, leading to a sharp spike in airfares – particularly to high-demand destinations like the UK.
Dubai Airports and Emirates airline regularly issue passenger advisories ahead of the summer rush, especially during July, when hundreds of thousands are expected to depart from Dubai.
Highest premium payers
Chauhan also highlighted that travellers aged 60 and above have experienced the steepest hike in insurance premiums, with rates rising between 25 per cent and 30 per cent. Meanwhile, those seeking coverage for adventure sports have faced the highest increases – up to 40 per cent more than standard base plans.
'Annual multi-trip policies have also become more expensive, with rates climbing over 15% due to evolving claim trends and longer average travel durations,' she added.
Hitesh Motwani, deputy CEO at Insurancemarket.ae, said insurers are responding by offering more streamlined and budget-friendly plans to make travel insurance more accessible.
'These tailored policies allow travellers to choose coverage that fits their specific needs and financial plans. Despite the recent hikes, travel insurance remains relatively affordable on a per-trip basis,' Motwani said.
He pointed out that while not all countries require travel insurance for incoming travellers, many have made it mandatory for visa issuance or entry.
'For example, the Schengen zone requires a minimum medical coverage of €30,000, including repatriation. Thailand mandates insurance for specific visa categories, particularly long-term stays. Russia requires coverage for those applying through unified e-visas, and Turkey makes it a condition for visa applicants,' he explained.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Business
31 minutes ago
- Gulf Business
Staycations are becoming more popular in Dubai – here's why
Image credit: Supplied photo The UAE hospitality sector is experiencing a sharp rise in demand for staycations, as more residents opt to spend their holidays within the country instead of traveling abroad, according to the Driven by convenience and cost-effectiveness, staycations are increasingly seen as a practical and affordable alternative to international travel. By avoiding long-haul flights, high-priced overseas accommodations, and fluctuating foreign exchange rates, UAE residents are choosing to explore the attractions in their own backyard, from pristine beaches and majestic mountains to bustling cities and cultural landmarks. Read- This trend is not only redefining local travel preferences but also providing a boost to the domestic economy. Hotels, restaurants, and entertainment venues across the country are benefitting from increased local spending, particularly during weekends and off-peak seasons. 'Staycationers aren't just booking rooms, they're engaging in the full hospitality experience,' the KPMG report noted. 'From utilising hotel amenities to dining at in-house restaurants and participating in curated experiences, residents are helping to diversify and stabilise revenue streams for the hospitality sector.' With the 'living local' movement gaining momentum, UAE hospitality businesses are responding with creative packages and promotions. These include family-friendly deals, upgraded leisure facilities, and tailored experiences that highlight the country's rich and varied attractions. New developments are also underway to meet rising demand. During the nine-day Eid Al Fitr holiday in 2024, the UAE recorded a notable spike in staycation bookings from both residents and travellers from neighboring GCC countries, compared to the same period the previous year. Dubai hospitality poised for continued growth Looking ahead, Dubai's hospitality industry is set for sustained expansion through 2025, supported by strong economic fundamentals, proactive government policies, and a thriving real estate market spanning both luxury and affordable segments. The city's Vision 2025 strategy, focused on tourism, infrastructure, and economic diversification, is paving the way for Dubai to solidify its position as a global tourism hub. Industry projections indicate: 11,300 new hotel rooms are expected to open in Dubai by 2027. Under the Dubai Economic Agenda D33, the emirate aims to rank among the top three global tourism destinations. However, to maintain competitiveness, hospitality players will need to prioritise innovation, sustainability, and the delivery of unique, localised guest experiences. Central hotels & Resorts capitalise on the domestic travel boom As Dubai grows into a year-round destination for both international and local travelers, Central Hotels & Resorts, one of the fastest-growing homegrown hospitality groups, is reaping the benefits of a transformed tourism landscape defined by leisure, locality, and lifestyle. In recent months, the group has recorded a 25 per cent increase in bookings from UAE residents. The surge is fuelled by families, couples, and millennial groups opting for short, curated getaways that offer luxury without the hassle of international travel. 'This is not just a seasonal shift—it reflects a deeper change in how residents view leisure,' said Abdulla Ahmad Ali Al Abdulla Al Ansari, COO and group general manager of Central Hotels & Resorts. 'Domestic guests, particularly Emirati families and long-time expats, are rediscovering Dubai's appeal. Family travel now contributes nearly 30 per cent of our domestic revenue, and demand for interconnecting rooms and suites has risen by over 40 per cent this summer compared to last year.' Tailored experiences redefine the staycation model To meet growing domestic demand, Central Hotels & Resorts has revamped its offerings to focus on convenience, comfort, and curated experiences. Flagship properties like Royal Central Hotel The Palm, Canal Central Hotel Business Bay, and C Central Resort The Palm cater to diverse tastes, from families lounging poolside to couples enjoying panoramic views and regional dining. 'We've introduced value-added offers such as 'Kids Go Free' promotions, enhanced family packages, flexible check-in/out, and upgraded leisure amenities,' Al Ansari explained. 'These thoughtful touches are turning short stays into meaningful escapes.' Strategic locations have also played a key role. By operating in some of Dubai's most vibrant neighbourhoods, Central offers guests both the connectivity of a city hotel and the tranquility of a resort. Whether it's a spontaneous summer weekend or a planned long weekend, the group is becoming the preferred choice for domestic travelers who seek comfort without compromise. Sustaining growth through domestic demand The domestic travel surge is helping hotels flatten seasonal dips in occupancy, particularly during the traditionally slower summer months. 'Domestic leisure travel is expected to account for 35 per cent of our total occupancy this summer, up from 28 per cent last year,' said Al Ansari. 'That's a significant shift, and it's enabling us to maintain strong performance even during what was once considered the off-season.' The wider market data supports this trend. According to Visa's 2025 UAE Travel Pulse, domestic travel spending rose by 68 per cent year-on-year, with Dubai accounting for 70 per cent of in-country travel bookings. Meanwhile, STR's 2024 report revealed Dubai welcomed 18.7 million overnight visitors, boasting an average occupancy rate of 78.2 per cent and a RevPAR of Dhs421, figures that position Dubai as a regional and global leisure powerhouse. Looking ahead: A new era of local tourism As Dubai continues to invest in innovative tourism strategies and new attractions, companies like Central Hotels & Resorts are doubling down on their commitment to provide personalised, value-driven hospitality. The growing appetite for local experiences signals a shift in traveler expectations—one where quality, culture, and convenience converge. 'For many residents, there's no longer a need to board a plane to feel like they're on holiday,' Al Ansari concluded. 'Dubai itself is the destination.'
Emirates 24/7
31 minutes ago
- Emirates 24/7
EU solar energy rollout declines for first time in decade as subsidies cut
The European Union's expansion of solar energy is on track for its first annual downturn in more than a decade, industry data showed on Thursday, as some governments reduce subsidies for rooftop solar panels, Reuters reported. The trend reflects shifting political priorities in Europe as some member countries have scaled back green measures or support for clean energy from budgets stretched by spending on defence and local industries. The EU is on track to install 64.2 gigawatts of new solar energy capacity in 2025, a 1.4% decrease compared with the 65.1GW installed last year, industry association SolarPower Europe said. The drop would mark the first time since 2015 that the growth of Europe's solar market has slowed year on year, denting an area of fast progress in Europe's shift to clean energy. Solar capacity growth soared by 51% in 2023, although last year growth had already slowed to 3%. Last month, solar generated 22% of total EU electricity, making it the EU's largest single source of power generation that month. But current deployment rates now indicate the EU will fall short, by about 27GW, of the 750GW of solar capacity which SolarPower Europe said is needed by 2030 for the EU's climate targets and plans to phase out Russian energy. The main cause of the downturn is fewer residential rooftop solar panel installations - a sector that is set to make up 15% of total new capacity this year, halving the roughly 30% share it held over 2020 to 2023. Germany and France are among the countries reducing their feed-in tariff payments for rooftop solar energy, while the Netherlands is also reducing support for households that export their excess solar power to the grid.
Emirates 24/7
31 minutes ago
- Emirates 24/7
Federal Judiciary Council issues decision regulating Bankruptcy Court, jurisdiction
Abdullah bin Awad Al Nuaimi, Minister of Justice and President of the Federal Judiciary Council, has issued a decision regarding the regulation of the Bankruptcy Court. The decision stipulates that the Bankruptcy Court shall be headquartered at the Abu Dhabi Federal Courts of First Instance and shall have jurisdiction over all applications and disputes arising from the implementation of the provisions of the Federal Decree-Law on Financial Restructuring and Bankruptcy. Furthermore, the decision also permits the Federal Judiciary Council, where appropriate, to establish one or more court headquarters in any of the Emirates, subordinate to the original court, with jurisdiction over the same applications and disputes. The Court shall be composed of a President, whose rank shall be no less than that of an appeal judge, and a number of specialised judges who shall be appointed by a decision from the Federal Judiciary Council. The decision also includes the establishment of a Bankruptcy Department within the Court and shall be headed by a judge whose rank is not less than an appeal judge. The Bankruptcy Department shall perform the following function: receive applications, objections, and grievances; register applications; serve notices to the interested persons according to the provisions of this law; and ensure that the applications for preventive settlement, restructuring and declaration of bankruptcy and others types of applications satisfy the information, data and documents described in this law. The decision specifies the administrative units affiliated with the Court and their respective jurisdictions to ensure role integration and operational efficiency. The resolution also includes special provisions concerning bankruptcy experts and consultants. The Bankruptcy Court may seek the assistance of from any persons of experience and specialists in this field to perform various tasks, including overseeing the management of the debtor's assets and business, enforcing the necessary precautionary measures, expediting proceedings, meeting the creditors, and summoning the debtor or their representative on matters related to their debts, assets, or business. This decision constitutes a qualitative step toward consolidating a legal environment supportive of financial stability, contributing to the acceleration of procedures and the achievement of balance between the requirements of justice and the continuity of economic activity in accordance with the highest standards of efficiency and transparency.
