UAE insurance sector posts robust growth; surge in claims

ABU DHABI: The UAE insurance sector continued to expand in H1 2024, with gross written premiums soaring by 31.2 per cent year-on-year to $9.7 billion (AED 35.7 billion), according to the latest Quarterly Economic Review from the Central Bank of the UAE (CBUAE).  

This growth was primarily driven by a sharp increase in property and liability insurance premiums, which surged by 39.4 per cent Y-o-Y, alongside significant gains in health insurance and life insurance segments.

Rise in claims

Despite this strong performance, the sector faced a substantial rise in claims, with gross paid claims growing by 34 per cent Y-o-Y to AED18.9 billion. The largest increase came from property and liability insurance, where claims jumped 46.2 per cent, while the life insurance sector saw a dramatic 150 per cent increase in paid claims.

The industry remains well-capitalised, with technical provisions rising 22.8 per cent Y-o-Y, and the sector’s own funds to Minimum Capital Requirement ratio improving to 376 per cent.

Net profit margin down

 Profitability took a slight hit, with net profit margins declining to 6 per cent of net written premiums, compared with 10.4 per cent the previous year.

With 59 licensed insurance companies and nearly 500 insurance-related professions, the UAE insurance market remains both dynamic and resilient, supported by growing investment and robust capital adequacy.