Further market consolidation is expected in the UAE insurance industry in 2025, says Fitch Ratings.
In a special report, Fitch says that this will be especially so if the seven listed insurers currently under regulatory scrutiny for not meeting solvency capital requirements fail to recover within the specified timeframe.
M&A activity in the UAE insurance market has been heightened since 2022 because of tighter regulation – since absorbing the insurance authority in 2021, the central bank has acted as a consolidated financial services regulator, which has led to more prudent supervision and enhanced market discipline.
Fitch expects the trend to continue. Recent regulatory enhancements include new rules for licensing and supervising operations of insurance brokers, effective February 2025.