Dubai, More than half of UAE residents admit they never purchase travel insurance when they go abroad, according to research released today by Zurich.
In a survey of 748 UAE residents conducted by YouGov, 58% of residents report that they never purchase travel insurance for their trips, while a third (32%) say they only occasionally do so. Arab expats (67%) are the most likely to travel abroad without insurance, followed by Asian expats (43%).
Almost a third (30%) of those who never buy insurance explain that their reasoning is based on a belief that they will never need to claim, while nearly a quarter (24%) say that they do need travel insurance. Approximately one in ten (13%) respondents also report that they do not purchase their own travel insurance as they are covered by their work insurance policy. Zurich cautions that this could be a costly mistake since corporate travel policies are often limited to the GCC and rarely cover travel inconvenience, such as lost baggage or delayed flights.
Just one in ten (11%) UAE residents say they always purchase travel insurance when heading overseas. This figure is extremely low when you consider that in mature markets, such as the US, Canada, Europe and Australia, around 60 – 70% of people who buy an air ticket will also buy travel insurance.
More than half (56%) of respondents who always purchase travel insurance say it gives them peace of mind. Cover for medical expenses (39%) while overseas is deemed to be another significant motivation for purchase and this is particularly pronounced where medical costs are perceived to be high, as in the USA, says Zurich.
For those respondents who sometimes take out travel insurance, their single biggest consideration is the destination of the trip (45%), followed closely by the cost of the trip (35%).
“We know UAE residents love to travel, with two thirds of survey respondents travelling up to three times per year, but it is noteworthy how many choose to go abroad without cover in place for possibilities such as personal injury, illness, missed flights, or stolen possessions,” said Jeremy Baggott, General Manager for Zurich’s General Insurance Business in the UAE. “Every customer is different and the protection they need varies from person to person, but it seems apparent that many UAE residents are exposing themselves to unnecessary risk every time they travel overseas.”
According to the Zurich survey, the most common claims for those residents who do take out travel insurance policies are lost or stolen luggage (48%), lost or stolen possessions (45%), medical expenses (33%) and missed or delayed flights (28%).