The insurance market in the UAE is rapidly evolving, influenced by robust economic growth, shifting consumer preferences, digital innovation, and regulatory reforms. With Dubai and Abu Dhabi as regional hubs, the UAE insurance industry has cemented its status as one of the most competitive and secure markets in the Gulf, playing a vital role in safeguarding individuals, families, and businesses.
This comprehensive overview will explore recent performance, break down the market structure, analyze trends, regulatory changes, and present detailed statistics from 2024 to 2025. Whether you are a consumer, business owner, or industry professional, understanding the insurance market in the UAE is essential for making informed financial and risk decisions.
UAE Insurance Market Overview: Q1 2024–2025 Performance
The UAE insurance market experienced robust growth in early 2024, continuing into 2025. According to the Central Bank of the UAE (CBUAE), gross written premiums across all insurance types rose by 18.5% year-over-year (YoY) to AED21.1 billion ($5.74 billion) in Q1 2024. This surge was fueled by increasing demand for property & liability, health, and life insurance, alongside expanded offerings from both domestic and foreign insurers.
At the same time, gross paid claims jumped by 18.3% YoY to AED8.4 billion. Notably, property and liability claims increased by 47.1%, echoing the sector's expanding risk coverage and complexity.
Technical provisions, which underpin sector stability, also grew by 6.9% to AED78.8 billion, while invested assets hit AED72.2 billion, now representing 54.8% of total sector assets.
Industry Structure: Insurance Companies, Professions, and Capitalization
The strength of the UAE insurance industry lies in its diversity and depth. There are 60 licensed insurance companies, 23 traditional Emirati providers, 10 takaful (Sharia-compliant) national insurers, and 27 international companies. Over 500 licensed insurance professionals are driving sector growth, providing customer service, underwriting, compliance, and technical expertise.
Capitalization levels remain outstanding, with the own funds to minimum capital requirement ratio surging to 376.9%—well above regulatory requirements. Ratio to solvency capital requirement stays strong at 194.8%, ensuring the sector is competitive, resilient, and able to weather unexpected downturns or claims surges.
Premiums, Claims, and Retention Ratio: What's Driving Growth?
- Property & liability insurance: Premiums jumped by 24.6% YoY to AED8.1 billion, reflecting economic expansion, real estate activity, and more stringent corporate risk management.
- Health insurance: Premiums increased by 15.1% YoY to AED10.7 billion, underpinned by mandatory group health coverage and growing corporate policies.
- Insurance of persons & fund accumulation (life category): Rose 15% YoY to AED2.3 billion, with increased uptake of both group and individual protection.
Despite this stellar growth, the retention ratio now stands at 50.2% (AED10.6 billion), down from 53.2%. It indicates greater reliance on global reinsurers, sharing risk internationally, and maintaining sector stability in a complex market.
The Shift in Health, Property, Life & Takaful Insurance
- Health Insurance
- - Dubai and Abu Dhabi enforce mandatory health schemes, driving both corporate and personal policy uptake.
- - Post-pandemic demand for comprehensive coverage continues to rise.
- Property & Liability
- - Booming real estate and business assets create new risks.
- - More companies and individuals recognize the need for insurance to manage asset protection and liability exposures.
- Life Insurance & Fund Accumulation
- - Life insurance, particularly group cover for corporations and individual plans, is gaining momentum as UAE residents plan for future security.
- Takaful (Islamic Insurance)
- - Takaful products are witnessing strong growth after regulatory improvements.
- - Following Law No. 48 ("Insurance Law 2023"), the takaful fund became a separate legal entity, providing enhanced safeguards for policyholders.
- - The Central Bank's Shari'ah governance standards now mandate rigorous compliance processes and support Emiratisation of key governance functions.
Digital Transformation and Insurtech
The digitalization of the UAE insurance sector is accelerating. Insurtech and mobile-first platforms are enabling seamless:
- Instant quotes and comparisons
- Fast online policy purchases and renewals
- 24/7 digital claims registration, tracking, and settlements
- AI-driven underwriting, fraud detection, and customer personalization
- Paperless onboarding and digital insurance certificates
This focus on digital innovation improves transparency, speeds up processes, and enhances customer experience. Consumers expect frictionless interactions, while providers benefit from efficiency and reduced operating costs.
Regulatory Reforms, Solvency & Shari'ah Governance
Ongoing regulatory reforms shape the UAE insurance market:
- Transparency, solvency, and capital adequacy: Regular audits and compliance checks, with strict standards under the Central Bank.
- Shari'ah governance standards: Takaful providers are required to implement a "three-lines-of-defense" framework, boosting compliance and trust.
- Customer protection mandates: Easy access to complaint channels, regulatory dispute resolution, and transparent disclosure of terms and benefits.
These reforms ensure the UAE insurance sector remains secure, trustworthy, and in line with global best practices.
Profitability, Invested Assets & Technical Provisions
Financial indicators illustrate a healthy sector:
- Net total profit to net written premiums increased from 7.8% to 8.0%.
- Return on average assets rose from 0.5% to 0.6%, showcasing prudent investment strategies and stable yields.
- Technical provisions at AED78.8 billion mean insurers can honor claims reliably, bolstering policyholder confidence.
- Insurers maintain solid portfolios, balancing risk and investment returns.
Consumer Experience & Competitive Dynamics
The UAE's open insurance landscape empowers consumers with:
- Wide choice among 60 providers—national, regional, global
- Price and benefit comparison via digital platforms
- Rapid onboarding and claims processing online
- Comprehensive coverage for health, life, car, property, and businesses
Competition ensures innovation and fair pricing, while regulatory supervision minimizes market abuses.
Market Challenges and Opportunities Ahead
- Challenges:
- - Declining retention ratios mean more risk is offloaded internationally, demanding careful oversight.
- - Rising claims costs, especially in health and property, require advanced risk management and reinsurance strategies.
- - Cybersecurity and data privacy: Digital expansion mandates robust protection of customer data and secure transaction systems.
- - Emiratisation: Continued push to employ UAE nationals in key sector roles, particularly in governance and compliance.
- Opportunities:
- - Launching new insurtech products for underserved segments
- - Expanding Sharia-compliant solutions
- - Scaling group and personal lines as the workforce and population continue to grow
Reference Table: Key UAE Insurance Market Data (Q1 2024)
| Metric | Q1 2023 | Q1 2024 | % Change |
|---|---|---|---|
| Gross Written Premiums (AED bn) | 17.8 | 21.1 | +18.5% |
| Gross Paid Claims (AED bn) | 7.1 | 8.4 | +18.3% |
| Technical Provisions (AED bn) | 73.7 | 78.8 | +6.9% |
| Invested Assets (AED bn) | 70.5 | 72.2 | +2.4% |
| Retention Ratio (%) | 53.2 | 50.2 | -3% |
| Own Funds: Min Capital Requirement (%) | 340.6 | 376.9 | +36.3 |
| Own Funds: Solvency Capital Requirement (%) | 198.0 | 194.8 | -3.2 |
| Net Profit to Written Premiums (%) | 7.8 | 8.0 | +0.2 |
| Return on Average Assets (%) | 0.5 | 0.6 | +0.1 |
| Number of Licensed Companies | 60 | 60 | Stable |
Sources: Central Bank of the UAE, Annual Report 2023; Central Bank of the UAE, Annual Report 2024; Central Bank of the UAE, Quarterly Economic Review June 2025.
UAE Insurance Market Outlook for the Future
As we move through 2024–2025, the insurance market in the UAE remains one of the region's most dynamic, resilient, and consumer-focused industries. With strong growth in premiums, investments, and profitability, robust regulatory safeguards, and a technologically-advanced offering, the sector is well-equipped to address future risks and needs.
For consumers and businesses, the result is more choice, better protection, and streamlined digital services. Whether seeking health, life, motor, property, or Sharia-compliant coverage, UAE residents can confidently navigate a mature market backed by sound capital, innovation, and transparent governance.
Find Your Ideal Insurance Coverage
With the UAE insurance market offering stronger coverage, more choices, and digital convenience, now is the perfect time to review your protection plans.
- Compare top insurance quotes from leading providers
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Visit insurenow.ae today and protect the things that matter most. Drive confidently, live securely, and benefit from the UAE's world-class insurance market.
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