Several developments, set to be introduced in the UAE in 2025, will bolster insurance industry revenues, provide a secure, healthy environment and improve the quality of life across the country, according to a report of the board of directors of Sukoon Insurance.
The report, which forms part of the company’s 'Integrated Report 2024', says that one development is the introduction of mandatory health insurance across the northern emirates. The compulsory scheme forms part of a comprehensive vision to expand the integrated social protection umbrella, which includes the Worker Protection Programme and the Unemployment Insurance Scheme.
“We also welcome anticipated compulsory introduction of the alternative end-of-service benefits system known as the “Savings Scheme”, fully replacing the current end-of-service gratuity mechanism,” said the report.
However, global geopolitical headwinds, a relatively high inflationary environment and unusual floods remain a persisting risk in 2025.
The report added, “Thus, pricing, cost discipline and claims management are paramount across consumer and commercial lines. To enhance customer experience even further, digitalisation and investments in technology will remain a priority to allow us to stay ahead of the curve.”
In 2024, the Sukoon group posted a profit before tax of AED291.5m ($79.4m), jumping by 13 % y-o-y. Insurance revenue topped the AED5bn mark for the first time to AED5.41bn, growing by 17% y-o-y. Net investment income reached AED209.1m, a growth of 10% y-o-y.
These key financial metrics are the highest ever in Sukoon’s history. “They are underpinned by prudent underwriting and risk selection across all business segments, a strict cost discipline and a balanced investment portfolio,” the report said.