UAE Insurance Sector Sees 15% Premium Growth, Health and Property Lead in 2025

The UAE's insurance market experienced significant expansion in 2025, with gross written premiums (GWP) reaching AED 74.8 billion, marking a 14.9% rise from the previous year. This growth, as reported by the Central Bank of the UAE, was largely propelled by strong performances in health, property, and liability insurance segments.

Key Growth Areas

Property and liability insurance premiums climbed 14.1% to AED 36.4 billion, reflecting robust activity in the real estate and business sectors. Health insurance premiums also saw a substantial increase of 16.3%, reaching AED 30 billion. Life insurance and fund accumulation premiums grew by 12.1% to AED 8.4 billion.

The surge in health insurance was partly attributed to the mandated basic health insurance for private-sector employees and domestic workers, which became effective across all emirates from January 1, 2025. This regulatory change aimed to enhance health coverage and financial inclusion.

Sector Performance and Claims

Total insurance policies issued in 2025 numbered 17.3 million, a slight increase from 17.2 million in the prior year. Health insurance policies alone witnessed a 26.1% increase, compensating for declines in other insurance categories.

Insurers paid out AED 46.2 billion in claims during 2025, an 11% rise year-on-year. Health insurance claims increased by 15.1%, while property and liability claims rose by 13.8%. Despite higher payouts, the sector's overall gross loss ratio improved to 65.1% from 68.9% in 2024, with the health insurance loss ratio easing to 75.3%.

Financial Health and Investment

The sector's profitability also saw a notable boost, with total profits generated by UAE insurance companies soaring to AED 4 billion in 2025, up from AED 2.6 billion in 2024. This increase was primarily driven by higher net investment income.

Insurers augmented their invested assets by 13.5% to AED 96.4 billion, representing 58.4% of their total assets. Securities and debt instruments constituted AED 43.7 billion of these invested assets, with cash and deposits accounting for AED 27 billion. The sector maintained strong capital levels, with a solvency capital requirement ratio of 199%.

As of 2025, 58 insurance companies were operating in the UAE, including 22 national traditional insurers, 10 national takaful companies, and 26 foreign insurance branches. The number of licensed insurance-related professionals also increased to 515 from 495 in 2024.