The UAE was the second-largest ins. market in the GCC in 2022 after Saudi Arabia, and 36th biggest globally in gross written premiums (GWP), according to UAE-based investment banking advisory firm Alpen Capital’s GCC Ins. Industry report (pdf). This growth is attributed to favorable economic conditions, rising oil prices, eased visa regulations, and structural enhancements. The country accounted for 39.3% of the GCC’s total GWPs in 2022, reaching USD 12.9 bn (AED 47 bn), primarily fueled by increases in property and liability and health ins. premiums.

SOUND SMART- Gross written premiums are ins. lingo for premiums that ins. providers charge in exchange for taking on risk.

The UAE had the highest penetration rates in both life and non-life ins. segments in the GCC in 2022, with a total ins. penetration rate of 2.5%, higher than the GCC average of 1.5%.

In terms of GWP: The UAE leads the GCC in the life ins. segment with a GWP of USD 2.8 bn in 2022. The non-life ins. sector in the UAE constituted 78.5% of the total GWP on the back of regulatory changes and higher ins. premium rates driven by a rise in claims post the covid-19 pandemic.

LOOKING AHEAD-The UAE’s ins. market is poised to grow at an annual rate of 4.9% to USD 17.9 bn (AED 65.74) by 2028, primarily driven by growth in the expansion of ins. to the northern emirates, the report said. The life ins. segment is expected to grow at a CAGR of 3.9% to USD 3.5 bn in 2028, as the population continues to grow while awareness of risk ins. and demand increase, Alpen said.

ALSO- The UAE is rolling out its unemployment ins. scheme, which is expected to attract more workers to the non-life ins. segment, Alpen said.

THE REGIONAL ANGLE-

The ins. market in the GCC is anticipated to grow at a CAGR of 5.3% to USD 44.4 bn (AED 163 bn) in 2028, after growing 15.2% y-o-y to USD 32.7 bn in 2022. This growth was driven by economic recovery post-covid and the implementation and development of mandatory health insurance across the GCC countries.

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