Kuwait travel insurance market report size, share, growth drivers, trends, opportunities & forecast 2025–2030

Kuwait Travel Insurance Market Overview

• The Kuwait Travel Insurance Market is valued at USD 30 million, based on a five-year historical analysis. This growth is primarily driven by the increasing number of outbound travelers, heightened awareness of travel-related health and security risks, and the rising demand for digital, customizable insurance solutions among consumers. The market has seen a notable uptick in demand for travel insurance products, particularly following global health events and regulatory changes that have underscored the importance of financial security while traveling.
• Kuwait City remains the dominant hub in the Kuwait Travel Insurance Market due to its role as the country’s primary travel and business center. The city’s strategic location, large expatriate population, and expanding tourism sector contribute to its market leadership. Additionally, the growing number of international flights and travel packages offered by local agencies further reinforce Kuwait City’s position as a key player in the travel insurance landscape.
• In 2023, the Kuwaiti government issued Ministerial Resolution No. 135/2023 by the Ministry of Interior, mandating that all outbound travelers must obtain travel insurance covering medical emergencies and repatriation before departing for international destinations. This regulation aims to enhance traveler safety and ensure individuals are financially protected against unforeseen events during their trips. Compliance with this regulation is now a prerequisite for obtaining travel visas, leading to a significant increase in demand for travel insurance products.

Kuwait Travel Insurance Market Segmentation

By Insurance Type:

The insurance type segmentation includes sub-segments such as Single-Trip Travel Insurance, Annual Multi-Trip Travel Insurance, Long-Stay Travel Insurance, Family Travel Insurance, Business Travel Insurance, Student Travel Insurance, Senior Citizen Travel Insurance, and Others. Among these, Single-Trip Travel Insurance is the most popular choice among travelers, driven by its flexibility and affordability for short-term trips. The increasing trend of spontaneous travel, the rise in international tourism, and regulatory requirements for outbound travelers have further propelled demand for this sub-segment. Annual Multi-Trip Travel Insurance is also gaining traction, particularly among frequent travelers and business professionals, as it offers convenience and cost savings for multiple trips within a year.

By Coverage Type:

The coverage type segmentation encompasses Medical Expense & Emergency Assistance, Trip Cancellation & Interruption, Baggage & Personal Effects Loss, Flight Delay & Cancellation, Accidental Death & Dismemberment, Personal Liability Coverage, and Other Specialized Covers (such as Adventure Sports and COVID-19). Medical Expense & Emergency Assistance is the leading coverage type, driven by travelers’ increasing awareness of health risks abroad and the need for immediate medical support. Trip Cancellation & Interruption coverage is also gaining popularity as travelers seek to protect their investments against unforeseen changes in travel plans, especially in the context of evolving global health and geopolitical risks.

Kuwait Travel Insurance Market Competitive Landscape

The Kuwait Travel Insurance Market is characterized by a dynamic mix of regional and international players. Leading participants such as Gulf Insurance Group (GIG), Kuwait Insurance Company (KIC), Warba Insurance Company, Al Ahleia Insurance Company, Al Sagr National Insurance Company, Boubyan Takaful Insurance Company, Wethaq Takaful Insurance Company, Al Fajer Insurance Company, Al-Dhafra Insurance Company, AXA Gulf (now GIG Gulf), Zurich Insurance Middle East, Chubb Arabia Cooperative Insurance Company, MetLife Gulf, Takaful International Company, and National Life & General Insurance Company contribute to innovation, geographic expansion, and service delivery in this space.

Kuwait Travel Insurance Market Industry Analysis

Growth Drivers

• Increasing International Travel:In future, Kuwait's international travel is projected to reach approximately 1.5 million outbound trips, reflecting a 10% increase from the previous period. This surge is driven by a growing middle class and increased disposable income, with the World Bank estimating a GDP growth rate of approximately 1.3% for Kuwait. As more Kuwaitis travel abroad, the demand for travel insurance is expected to rise significantly, providing a robust growth driver for the market.
• Rising Awareness of Travel Risks:A recent survey indicated that 65% of Kuwaiti travelers are now aware of potential travel risks, up from 50% in the previous period. This heightened awareness is attributed to increased media coverage of travel-related incidents and health concerns. As a result, more travelers are seeking comprehensive travel insurance policies to mitigate risks, which is expected to drive market growth in future, as consumers prioritize safety and security during their travels.
• Government Initiatives to Promote Tourism:The Kuwaiti government has allocated $500 million for tourism development in future, aiming to attract 2 million international visitors in future. This initiative includes promotional campaigns and infrastructure improvements. As tourism increases, so does the need for travel insurance, as visitors will seek coverage for health, accidents, and trip cancellations, thereby expanding the market for travel insurance providers in Kuwait.

Market Challenges

• High Competition Among Providers:The Kuwait travel insurance market is characterized by intense competition, with over 20 providers vying for market share. This saturation leads to aggressive pricing strategies, which can erode profit margins. In future, the average premium for travel insurance is expected to decrease by 5% as companies compete for customers, making it challenging for providers to maintain profitability while offering comprehensive coverage.
• Regulatory Compliance Costs:Compliance with local regulations imposes significant costs on travel insurance providers. In future, it is estimated that compliance costs will account for approximately 15% of operational expenses. This includes expenses related to licensing, reporting, and adherence to consumer protection laws. Such financial burdens can limit the ability of smaller providers to compete effectively, potentially leading to market consolidation.

Kuwait Travel Insurance Market Future Outlook

The Kuwait travel insurance market is poised for significant evolution in the coming years, driven by technological advancements and changing consumer preferences. The increasing adoption of digital platforms for purchasing insurance is expected to streamline the buying process, enhancing customer engagement. Additionally, as the tourism sector continues to grow, insurance providers will likely innovate their offerings to include more tailored solutions, ensuring they meet the diverse needs of travelers while maintaining competitive pricing.

Market Opportunities

• Growth in Medical Tourism:Kuwait is witnessing a rise in medical tourism, with over 100,000 medical tourists expected in future. This trend presents a lucrative opportunity for travel insurance providers to offer specialized medical coverage, catering to the unique needs of these travelers and enhancing their market presence.
• Customizable Insurance Packages:There is a growing demand for customizable travel insurance packages, with 70% of consumers expressing interest in tailored options. Providers can capitalize on this trend by offering flexible plans that allow travelers to select coverage based on their specific needs, thereby increasing customer satisfaction and loyalty.