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 Saudi Arabia travel insurance sector experiences robust expansion, fueled by surging tourism initiatives, mandatory coverage for pilgrims during Hajj and Umrah, and increasing outbound leisure trips by residents. Digital platforms and regulatory support enhance accessibility, catering to diverse travelers including families, business professionals, and religious visitors.

How AI is Reshaping the Future of Saudi Arabia Travel Insurance Market:

• AI-powered chatbots and instant tools handle over 50% of customer interactions in the insurance sector, making it super easy for travelers to get quotes, buy policies, and file claims without long waits or paperwork hassles.

• Platforms like Yasmina AI lead the way in embedded insurance, letting travel sites and apps offer personalized protection right at checkout, so buying coverage feels seamless and tailored to your trip.

• Insurers use AI for smarter risk assessment and fraud detection, which speeds up underwriting and cuts down on fake claims, helping keep premiums fair while boosting trust among customers.

• With Vision 2030 pushing digital growth and the Saudi Data & AI Authority backing it, AI integration has driven more than 80 million transactions across insurance, including travel products, through efficient automated systems.

• AI enables hyper-personalized travel policies based on real-time data analytics, improving claims processing times significantly and lifting overall customer satisfaction in a market that's embracing tech fast.

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Market Growth Factors

The surge in tourism driven by Vision 2030 has significantly boosted the travel insurance sector in Saudi Arabia. Government initiatives to diversify the economy beyond oil have led to major investments in leisure destinations, cultural sites, and infrastructure projects that attract a growing number of international visitors. This expansion includes adventure activities, extended stays, and business-related travel, creating broader demand for comprehensive coverage options that address various risks associated with diverse travel experiences. As the Kingdom positions itself as a global tourism hub, insurers adapt by offering tailored products that align with emerging travel patterns and enhance visitor confidence in exploring new attractions.

Mandatory health insurance requirements for pilgrims performing Hajj and Umrah continue to serve as a key driver for the travel insurance market. Regulations ensure that international visitors on pilgrimage visas receive emergency medical protection throughout their stay, often integrated directly into the visa process for seamless compliance. This policy supports the millions of pilgrims arriving annually by providing standardized access to healthcare services and reducing financial burdens from unexpected incidents. The consistent influx of religious travelers sustains steady demand for specialized insurance offerings focused on medical emergencies and related travel disruptions.

Rapid digital transformation has reshaped how travel insurance is accessed and purchased in Saudi Arabia. The widespread adoption of online platforms, mobile applications, and integration with eVisa systems allows consumers to compare policies, buy coverage conveniently, and receive instant confirmations. This shift toward digital channels improves accessibility for both domestic and international travelers while enabling insurers to use data-driven approaches for better product customization. Enhanced online purchasing convenience encourages higher uptake, particularly among tech-savvy younger demographics and outbound Saudi residents seeking flexible and efficient insurance solutions.

Market Segmentation

Insurance Coverage Insights:

To get more information on this market

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

Distribution Channel Insights:

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

End User Insights:

• Senior Citizens
• Business Travelers
• Family Travelers
• Others

Regional Insights:

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

Competitive Landscape

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent Developement & News

• February 2026: Mandatory 90-day health insurance enforced for Hajj and Umrah pilgrims, automatically linked to visa issuance to ensure comprehensive emergency medical coverage and faster access to healthcare during pilgrimages.
• January 2025: The Insurance Authority enforces a 30% local reinsurance cession requirement across all lines, including travel policies, reshaping treaty structures for enhanced solvency in medical evacuation and specialized coverages.
• March 2025: Bupa Arabia launches the Kingdom’s first “No Pre-Approvals Network” for streamlined hospital access, initially covering seven hospitals and over 200,000 members, with plans for nationwide rollout to improve cashless and efficient claims processing in health-related travel scenarios.

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

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