The Central Bank of the UAE (CBUAE) has reported significant growth in the country’s insurance sector, with total profits reaching AED 2.5 billion in 2023, a marked increase from AED 1.96 billion in 2022. This growth is attributed primarily to a rise in net investment income across the industry.
According to the CBUAE’s Annual Statistical Report for the Insurance Sector of the UAE 2023, the total number of insurance policies issued soared to 14.6 million, up from 8.4 million the previous year. This remarkable rise was largely driven by an increase in property and liability insurance policies, particularly in the realm of Involuntary Loss of Employment Insurances.
Regional Breakdown of Insurance Policies
Dubai continues to dominate the insurance market, accounting for 59.9% of total policies written in the UAE. Other emirates contributed as follows: Abu Dhabi with 21%, Ras Al Khaimah at 6.6%, Sharjah with 4.58%, Fujairah at 1%, and Ajman at 0.5%. Additionally, policies written outside the UAE constituted approximately 6.4% of the total.
Premiums and Claims on the Rise
Gross written premiums also saw a year-on-year increase, totaling AED 50.4 billion in 2023, compared to AED 44.1 billion in 2022. Dubai’s share of these premiums was 61%, while Abu Dhabi contributed around 27.7%.
On the claims side, gross paid claims within the UAE rose to AED 30.3 billion, up from AED 26.5 billion in 2022. Dubai accounted for 60.7% of these claims, with Abu Dhabi responsible for 28.9%.
The data reflects a robust recovery and expansion within the UAE insurance market, indicating a strong demand for various insurance products across the region.
