The Central Bank of the UAE (CBUAE) recently released its annual statistical report for the insurance sector of the UAE in 2023, revealing positive growth in the industry. The total profits of the country’s insurance sector reached Dh2.5 billion in 2023, showing a significant increase from Dh1.96 billion in 2022. This growth was primarily attributed to the rise in net investment income within the insurance sector during the year.
The report also highlighted an increase in the total number of written insurance policies in the UAE, totaling to 14.6 million policies in 2023 compared to 8.4 million policies in 2022. This surge was largely driven by a higher number of property and liability insurance policies, particularly in Involuntary Loss of Employment Insurances policies. The emirate of Dubai accounted for the largest share with 59.9 per cent, followed by Abu Dhabi at 21 per cent.
Gross written premiums within the UAE also saw an increase, reaching Dh50.4 billion in 2023 compared to Dh44.1 billion in 2022. Dubai contributed significantly to this growth, with a share of 61 per cent, while Abu Dhabi held approximately 27.7 per cent. Correspondingly, gross paid claims within the UAE also rose to Dh30.3 billion in 2023 compared to Dh26.5 billion in 2022, with Dubai and Abu Dhabi accounting for 60.7 per cent and 28.9 per cent of these claims, respectively.
The insurance sector in the UAE appears to be on a positive trajectory, with increasing profits, written policies, premiums, and paid claims. This growth indicates a growing demand for insurance products and services within the country, particularly in property and liability insurance. The dominance of Dubai and Abu Dhabi in both written premiums and paid claims showcases the strategic importance of these emirates in the insurance industry.
As the insurance sector continues to expand and evolve in the UAE, insurance companies will likely focus on developing innovative products and services to meet the changing needs of consumers. With the increase in net investment income contributing significantly to sector profits, insurers may also explore new investment opportunities to enhance their financial performance. Additionally, the rise in property and liability insurance policies suggests a growing awareness of the importance of risk management and protection among individuals and businesses in the UAE.
Overall, the positive performance of the insurance sector in the UAE in 2023 reflects the resilience and adaptability of industry players in responding to market dynamics and consumer needs. As the country’s economy continues to recover from the impact of the global pandemic, the insurance sector is poised to play a vital role in supporting individuals and businesses in mitigating risks and securing their financial well-being. With continued investment in technology, product innovation, and customer service, the UAE insurance sector is well-positioned for sustainable growth in the years ahead.
