Why more UAE residents are buying travel insurance, even when visiting home

With summer holidays around the corner and schools on break, UAE residents are gearing up for vacations, many of them heading to their home countries. But what’s different this year is the growing number of people purchasing travel insurance, even for destinations that feel familiar.

This trend was highlighted in a recent Khaleej Times report on changing travel insurance habits among UAE residents. Industry experts say this rising trend is driven by a mix of practical concerns and evolving travel patterns.Hitesh Motwani, Deputy CEO at Insurancemarket.ae, said there's a significant shift in how UAE travellers view insurance when heading abroad.“There is a noticeable trend of UAE residents purchasing travel insurance even when travelling to their home countries,” he said.“This shift is driven by increased awareness of potential risks such as medical emergencies, travel disruptions, or baggage issues that can occur regardless of familiarity with the destination. The affordability of travel insurance also contributes to its growing adoption among travellers seeking comprehensive protection during their trips.”Toshita Chauhan, business head of general insurance at Policybazaar.ae, confirmed that more expats are now insuring trips home during high-traffic periods like summer, Eid, and school breaks.

“Yes, we’ve definitely seen that shift. More and more UAE expats are buying travel insurance when flying back home for holidays — especially during summer, Eid, or school breaks,” she said.“Even if they’re going somewhere familiar, many realise that medical expenses or flight delays aren’t always easy to manage. The ease of comparing policies online and the affordability of plans has made it a convenient decision for most.”

Premiums are rising: Here’s what’s behind It

Travel insurance is becoming more common, and more expensive. As summer travel picks up, insurance premiums in the UAE have risen by 12% to 18% year-on-year, According to figures shared by industry executives with Khaleej Times, the increase reflects global medical cost pressures and growing claims activity.Toshita Chauhan explained that this increase translates to a difference of AED 15 (approx. $4.08) to AED 70 per policy, depending on the travel duration, destination, and the traveller’s age.“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 noted.She added that France, Spain, and Italy have topped the list of destinations where UAE travellers request help with medical emergencies. In contrast, tropical vacation spots like Thailand, Bali, and the Maldives have seen more flight cancellations, mostly due to weather-related disruptions.Travellers heading to the UK and US also face higher medical costs, which has added to the upward pressure on insurance premiums. So far this year, the most common claims filed by UAE travellers are for missed flights and delayed baggage.

Who's paying the most?

Not all travellers are affected equally by these price hikes. Those aged 60 and above have seen the largest premium increases, between 25% and 30%. Meanwhile, people purchasing coverage for adventure sports are facing the steepest rise overall, with premiums up by as much as 40% compared to standard plans.Even frequent travellers are feeling the change. According to Chauhan:“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 told Khaleej Times.

A word of caution for high-risk destinations

Travellers heading to conflict zones or politically unstable regions, such as Syria, should exercise extra caution when choosing travel insurance. Syria is considered a high-risk destination, and coverage is usually limited or outright excluded by most insurers.“Many insurers exclude war-prone countries from their standard policies, making it challenging to obtain comprehensive coverage for travel to Syria,” said Hitesh Motwani.“As a result, most travellers to Syria may not purchase travel insurance, either due to limited availability or the perception that coverage won't be applicable. For those seeking insurance, specialized policies with higher premiums and restricted benefits may be available through select providers, but these are exceptions rather than the norm.”Toshita Chauhan agreed that some travellers still try to get coverage for Syria, mainly for medical emergencies, trip delays, or baggage loss, but warned that exclusions are often buried in the fine print.“Importantly, most travel insurance policies explicitly exclude coverage for war zones, areas under conflict, or destinations marked as high-risk by government advisories,” she said.“Before purchasing a policy, travellers should confirm if Syria is included in the policy’s coverage region. Due to the complex risk profile, travellers are strongly advised to proceed with extreme caution and ensure they have complete clarity on coverage terms before making the trip.”