UAE insurance sector reports Dhs2.5bn in profits in 2023: CBUAE

The UAE’s insurance sector saw a significant uptick in profitability and activity in 2023, with total industry profits reaching Dhs2.5bn, up from Dhs1.96bn in 2022.

According to the Central Bank of the UAE (CBUAE), this growth was primarily fuelled by a surge in net investment income.

In its Annual Statistical Report for the Insurance Sector 2023, CBUAE revealed that the total number of written insurance policies across all categories surged to 14.6 million in 2023, compared to 8.4 million in the previous year.

This dramatic rise reflects an increased demand for property and liability insurance policies, particularly driven by the expansion of involuntary loss of employment (ILOE) insurance policies, a growing segment in the UAE’s social safety net.

Dubai dominates the insurance market share

The emirate of Dubai continued to dominate the UAE’s insurance market in 2023, accounting for 59.9 per cent of all insurance policies written in the country. Abu Dhabi followed with a 21 per cent market share, while Ras Al Khaimah and Sharjah represented 6.6 per cent and 4.58 per cent, respectively. Other emirates, including Fujairah and Ajman, contributed smaller shares, with 1 per cent and 0.5 per cent, respectively.

Interestingly, the report also highlighted that policies written outside the UAE comprised approximately 6.4 per cent of the total market.

Gross written premiums and paid claims surge

The CBUAE report highlighted strong performance across key metrics, including gross written premiums and gross paid claims.

Gross written premiums within the UAE increased to Dhs50.4bn in 2023, up from Dhs44.1bn in 2022.

Dubai again led the way, contributing 61 per cent of these premiums, while Abu Dhabi’s share stood at approximately 27.7 per cent.

In tandem with the rise in premiums, gross paid claims also saw a notable increase.

The total value of claims paid out in 2023 reached Dhs30.3bn, compared to Dhs26.5bn in the previous year.

Dubai accounted for the largest share of these claims, at 60.7 per cent, with Abu Dhabi following at 28.9 per cent.

Read: Abu Dhabi, Dubai CDS drop; reflects fiscal resilience, says CBUAE