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The UAE’s insurance sector saw a significant increase in profitability and activity in 2023, with total industry profits reaching Dh2.5 billion from Dh1.96 billion in 2022.
According to the Central Bank of the United Arab Emirates (CBUAE), this growth was mainly driven by a sharp increase in net investment income.
The CBUAE reveals in its 2023 Insurance Sector Annual Statistics Report 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. I made it.
This dramatic increase reflects increased demand for liability insurance policies, particularly driven by the expansion of involuntary loss of employment (ILOE) insurance policies, a growing area of the UAE’s social safety net.
Dubai dominates insurance market share
The Emirate of Dubai continued to dominate the UAE insurance market in 2023, accounting for 59.9% of all insurance contracts concluded in the country. Abu Dhabi followed with 21% market share, followed by Ras Al Khaimah and Sharjah with 6.6% and 4.58% respectively. Other emirates, including Fujairah and Ajman, contributed less at 1% and 0.5%, respectively.
Interestingly, the report also highlights that insurance policies written outside the UAE account for approximately 6.4 percent of the total market.
Gross premiums written and claims paid soar
CBUAE’s report highlighted strong performance across key metrics, including gross premiums written and gross claims paid.
Gross written premiums in the UAE increased from Dh44.1 billion in 2022 to Dh50.4 billion in 2023.
Dubai again led the way, contributing 61 per cent of these premiums, while Abu Dhabi’s share was around 27.7 per cent.
In parallel with the increase in premiums, gross claims paid also increased significantly.
Total claims paid in 2023 amounted to Dh30.3 billion, compared to Dh26.5 billion the previous year.
Dubai accounted for the largest share of these claims at 60.7%, followed by Abu Dhabi at 28.9%.
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