The total motor insurance premiums generated in 2023 amounted to about AED5.9bn ($1.6bn), of which AED4.3bn was accounted for by locally incorporated companies and AED1.6bn by foreign insurers, according to data released by the Central Bank of the UAE.
The general average price of a vehicle insurance policy reached AED1,214. The average price of a motor insurance policy in the UAE in 2023 exceeded AED1,105 ($301) for policies issued by national companies, compared to AED1,666 for policies issued by foreign-owned insurers.
The number of motor insurance policies issued in 2023 was about 4.9m, with locally incorporated insurers accounting for over 3.9m policies and 941,000 policies by foreign insurers.
Total written premiums for all insurance branches and products increased by 13% year on year in 2023 to AED53.4bn. The overall number of insurance policies issued increased by 60% to 15.6m, compared to 9.8m issued in 2022 and this growth was due to an increase in the number of unemployment insurance policies.
Paid claims overall increased by 14.2% to AED31.6bn, while motor claims increased by 8% to AED4bn in 2023.
The volume of paid claims increased by 14.2% to AED31.6bn, indicating that paid claims in motor insurance increased by 8% to AED4bn, compared to AED3.7bn in 2022.