The UAE insurance sector is projected to grow at a CAGR of 4.7 per cent, reaching $12.4 billion by 2028. The increasing use of technologies such as AI and blockchain is expected to revolutionize the insurance industry, enhancing efficiency and customer experience. According to Koy Nien Lee, CEO Designate of Protego, a newly-launched insurance aggregator, digital platforms will play a crucial role in providing customers with personalized insurance services and interactions. Protego anticipates growth in both life and non-life insurance segments, particularly in health and motor insurance, driven by mandatory health insurance coverage from 2025 and rising vehicle ownership.
Lee also highlighted the rising demand for emerging insurance segments such as cyber insurance due to increasing cybersecurity threats. Additionally, life insurance products related to savings and pensions are gaining traction as people seek diverse financial protection. Regulatory reforms by the Central Bank of the UAE, including stricter solvency and capital adequacy requirements, are expected to enhance the sector’s stability, transparency, and customer protection. The recent April rains presented challenges to insurers in the automotive and property segments, testing their claims management capabilities. Insurers that maintain financial stability and ensure timely claims payouts stand to gain customer trust and brand recognition.
The Covid-19 pandemic has underscored the importance of health insurance, with the market predicted to grow at a CAGR of 6.4 per cent to $14.6 billion by 2032. Customers are increasingly seeking proactive health insurance coverage, prompting insurers to innovate new benefits that cater to medical and treatment needs during such events. Protego plans to launch its health insurance proposition in the near future to meet this growing demand. The partnership with RAKBank is expected to be advantageous for Protego’s growth, with connections with leading insurers ensuring competitive products and smooth claims settlement for customers.
Overall, the UAE insurance sector is poised for significant growth, driven by technological advancements, regulatory reforms, and evolving customer needs. The adoption of digital platforms and innovative insurance products will play a crucial role in enhancing customer experience and expanding market opportunities. As the sector continues to evolve, insurers that prioritize financial stability, timely claims management, and customer-centric solutions stand to gain a competitive edge and build long-term relationships with customers. The future of the UAE insurance industry looks promising, with opportunities for growth and innovation on the horizon.
