The UAE insurance sector has displayed significant growth during the second quarter of 2024, as outlined in the Quarterly Economic Review by the Central Bank of the UAE. Gross written premiums in the sector saw a notable increase of 31.2% year on year, reaching Dh35.7 billion in the first six months of the year. This growth was primarily driven by a surge in property and liability insurance premiums, health insurance premiums, and insurance of persons and fund accumulation premiums, with a notable increase in group and individual life insurance premiums.
Furthermore, the gross paid claims across all insurance plans also experienced a substantial increase, rising by 34.0% year on year to Dh18.9 billion in the first half of 2024. The spike in claims paid was particularly prominent in property and liability insurance, as well as insurance of persons and fund accumulation. Additionally, the total technical provisions of all types of insurance saw a 22.8% year-on-year increase to Dh94.2 billion, with the volume of invested assets in the insurance sector amounting to Dh78.7 billion.
The UAE insurance sector’s capitalization remained robust, with various capital adequacy ratios showing positive trends. The own funds to Minimum Capital Requirement ratio increased to 376% in the first half of 2024, while the own funds to solvency capital requirement ratio reached 185.8%. Additionally, the sector’s profitability metrics indicated a 6% net total profit to net written premiums in H1 2024, with a return on average assets of 0.7%, showcasing a positive performance in terms of profitability.
Currently, there are 59 licensed insurance companies operating in the UAE, including 23 traditional and 10 takaful national companies, along with 25 branches of foreign insurance companies and one branch of a foreign reinsurance company. The sector also employs a significant number of insurance-related professionals, with 498 individuals engaged in various roles across the industry.
This growth and performance in the UAE insurance sector showcase its resilience and potential for further expansion. With a substantial increase in gross written premiums, paid claims, and technical provisions, coupled with strong capitalization and profitability metrics, the sector is well-positioned for continued growth and innovation. As the insurance landscape in the UAE continues to evolve, the sector’s adaptability and robust regulatory framework will be essential in driving sustainable growth and ensuring financial stability in the market.
