2024 proved to be a pivotal year for the UAE insurance industry, showcasing its resilience in the face of unprecedented weather-related losses, according to international actuarial consulting firm Badri Management Consultancy.
In a report titled, 'UAE—Insurance Industry Performance Preliminary Analysis—Year End 2024', Badri says that despite early concerns about record claims, the sector not only stabilised but thrived, with insurance revenue surging by 21% to AED43.4bn ($11.8bn). This growth was fuelled by rising premium rates in motor and medical lines, the expansion of industry pools, and the introduction of new products—particularly in the northern Emirates.
The industry's reliance on reinsurance, often seen as a drag on local profitability, played a stabilising role in 2024, preventing deeper financial shocks. Investment gains from a buoyant property market further bolstered overall results. As a result, net profit climbed 20% to AED2.6bn, with 17 out of 27 insurers posting higher earnings than in the previous year.
Regulatory enforcement by the Central Bank of the UAE also played a critical role in improving market discipline, limiting the issuance of unsustainably low-premium policies by insolvent insurers. However, the sector must remain vigilant against rising reinsurance costs and the delayed financial impact of certain treaty structures.
Badri based these insights on preliminary financial disclosures by the insurance companies.
2025
Looking ahead, sustained premium increases in key business lines are expected to drive further profitability into 2025. While challenges persist, the UAE insurance market has demonstrated its ability to adapt and grow, setting a strong foundation for the future.