Overview
The UAE insurance market is the second largest in the Arab world, driven by mandatory health and motor coverage requirements and an expanding commercial property and casualty segment. Regulatory consolidation under the CBUAE, tightened solvency standards, and mandatory emirate-wide health insurance mandates have fundamentally altered the market’s structure and profitability trajectory.
Current Landscape
Gross written premiums have exceeded AED 55 billion, with health insurance accounting for nearly half of total premiums. Motor insurance remains the most competitive line, with combined ratios frequently exceeding 100 percent among smaller players. The life and family takaful segment is growing from a low base as expatriate retention improves and pension alternatives emerge. Mergers have reduced the number of active insurers from over 60 to approximately 45, improving scale economics.
Data & Metrics
| Indicator | 2024 | 2025 (Est.) | 2026 (Proj.) |
|---|---|---|---|
| Gross Written Premiums (AED bn) | 55.2 | 59.8 | 64.5 |
| Health Insurance Share (%) | 47 | 48 | 49 |
| Insurance Penetration (% GDP) | 3.0 | 3.2 | 3.4 |
| Active Insurers | 47 | 45 | 43 |
| Combined Ratio (Market Avg.) | 94.1% | 93.5% | 92.8% |
Policy Framework
The CBUAE assumed oversight of the insurance sector in 2021, replacing the former Insurance Authority. New risk-based capital requirements, actuarial reserving standards, and corporate-governance rules have raised the compliance bar. Mandatory health insurance now extends across all seven emirates, and discussions are advancing on mandatory property insurance for natural-catastrophe exposure. Insurtech sandboxes allow digital-native entrants to test parametric and embedded-insurance products.
Vision 2031 Implications
A deeper insurance market reduces fiscal exposure to disaster risk and supports economic resilience – both priorities under Vision 2031. Expanding life-insurance and pension coverage among the expatriate population will reduce reliance on end-of-service gratuity models and improve long-term savings. The sector’s ability to underwrite large-scale infrastructure and energy-transition projects will be essential as the federation’s capital investment pipeline expands through the decade.