UAE Insurance Sector Assets Projected at Dh164.9 Billion by 2025 with 14.9% Premium Growth

The UAE's insurance sector is experiencing significant growth, driven by regulatory changes that impact both consumers and insurers.

• Assets surged to Dh164.9 billion in 2025, marking a 6.1% increase from 2024.
• Premiums rose by 14.9% to Dh74.8 billion, with health premiums alone reaching Dh30 billion.
• Active policies expanded to 17.3 million, fueled by mandatory health coverage for private-sector employees and domestic workers.

• Mandatory health insurance was introduced on January 1, 2025, targeting private-sector employees and domestic workers, thus broadening the market for insurers.
• Economic diversification efforts in the UAE are supported by this insurance expansion, aligning with the Central Bank's goals for financial sector stability.
• Prior trends showed a shift from voluntary to mandatory coverage, indicating a maturation of the regional insurance market.

The Central Bank of the UAE's annual report, released on August 24, 2026, highlights a robust growth trajectory for the insurance sector, with total assets reaching Dh164.9 billion in 2025. This represents a 6.1% increase from Dh155.5 billion in 2024, showcasing the sector's resilience and capacity for expansion. The surge in gross written premiums, which climbed 14.9% to Dh74.8 billion, is largely attributed to the introduction of mandatory basic health insurance. This policy, effective January 1, 2025, has significantly increased the number of health policies, contributing to a 26.1% rise in active health coverage.

The report also indicates that profits soared by 54% to Dh4 billion, reflecting the sector's strong performance amid rising claims, which reached Dh46.2 billion. The technical provisions, essential for covering future claims, increased to Dh96.3 billion, while invested assets accounted for 58.4% of total assets, amounting to Dh96.4 billion. This solid financial foundation is underscored by a capital adequacy ratio of 455% of minimum requirements, indicating that insurers are well-positioned to absorb potential shocks.

The mandatory health insurance policy has not only expanded the addressable market for insurers but has also improved overall market penetration in the UAE. With 17.3 million active policies, the sector is witnessing a diversification of offerings, particularly in health and property insurance. The retention ratio, which measures the percentage of premiums retained after claims, improved to 56%, suggesting that insurers are effectively managing their risk exposure.

As the market continues to evolve, the alignment with projected growth estimates—previously set at 20% by S&P—indicates a stable outlook for the insurance sector. The absence of immediate regulatory changes following the report suggests that the current framework is conducive to sustained profitability and capital strength, fostering an environment ripe for institutional investment.

• Private-sector employees: Increased access to health insurance options and potential changes in premium costs.
• Domestic workers: Now included in mandatory coverage, enhancing their access to health services.
• Insurance companies: Experience heightened demand for health policies, leading to potential growth in market share.
• Brokers and agents: Benefit from increased activity in the insurance market as more individuals seek coverage.

• Policy adjustments: Monitor for any changes in mandatory coverage requirements that could affect premium rates.
• Market penetration rates: Keep an eye on how the number of active policies evolves, indicating consumer engagement with insurance products.
• Profitability trends: Watch for quarterly earnings reports from major insurers to gauge ongoing financial health and sector stability.