The UAE Insurance Association anticipates that the local insurance sector will experience growth ranging from 10% to 20% in the current year, 2025.
In a recent press statement, the Association’s President, Khaled Al-Badi, mentioned that the UAE market is undergoing a significant corrective phase, during which insurance companies in the nation have demonstrated tangible growth over the past two years, 2024 and 2025, driven by improvements in the macroeconomic conditions of the UAE.
Speaking at the outset of the 20th Gulf Insurance Forum held in Dubai, he noted that insurance companies in the country are addressing all claims resulting from the recent rainfall crisis, and these developments have prompted corrective measures due to the rising costs of reinsurance. This has led firms to increase rates on direct transactions and eliminate discounts on mandatory auto insurance premiums, as well as enhance their technical performance while moving away from aggressive pricing strategies.
Opportunities
He emphasized that there are clear opportunities present in the insurance market, particularly with the ongoing development of large-scale infrastructure projects and the expansion of compulsory insurance coverage across all Emirates. Additionally, factors such as the implementation of unemployment benefits are expected to drive demand. Al-Badi predicted that the sector would continue to make significant investments in automation and digital platforms in the near future, alongside the integration of artificial intelligence, which will lead to the introduction of more innovative insurance products and the attraction of expertise.
He further stated that the Gulf insurance market is likely to witness robust growth in 2025, fueled by strong economic expansion within the GCC states and rapid advancements in digitization and the adoption of artificial intelligence for predictive analytics, risk assessment, and underwriting improvements. The expansion of mandatory insurance programs will also play a significant role, while the importance of mergers and acquisitions in the Gulf insurance sector is increasing, contributing to the strengthening of major entities and enhancing the sector’s status and credit rating. He pointed out that the insurance sector will not operate in isolation from the developments occurring in the global insurance market, which necessitates increased investments by Gulf companies in automation and digital platforms to meet the evolving market demands.
Anticipated Demand Surge
With economic growth, a rising population in the GCC countries, and the expansion of compulsory insurance schemes, a notable increase in demand for insurance products is expected in the upcoming period.
The discussions on the first day of the forum, which saw participation from over 250 insurance officials from more than 30 countries, focused on various issues, including enhancing resilience in the reinsurance market across the GCC and fostering partnerships to establish regional risk groups specifically to mitigate financial risks.