Growth indicators of insurance sector in UAE reflect dynamic, active market

Dubai [UAE]: The insurance sector in the UAE witnessed growth and expansion across various key indicators during 2022, according to a report by the Central Bank of the UAE, reflecting a strong, dynamic, and active market driven by increasing demand and effective risk management.

This will help bolster the market’s liquidity and make it more resistant to any future downturns, according to the apex bank’s annual statistical report on the insurance sector.

The Central Bank pointed out that the insurance sector in the UAE achieved growth in most of the key performance indicators in 2022, with Gross written premium increasing by 6.6 per cent year-on-year to reach AED 47.2 billion.

The report explained that the number of direct premiums written grew by 11.2 per cent year-on-year to 9.8 million in 2022, indicating the growth of the insured base and increasing market penetration rates. Total claims paid also increased by 4 per cent to AED27.7 billion, which suggests a similar increase in the utilisation of insurance coverage and services, reflecting a dynamic and active market.

The retention ratio of written insurance premiums, according to the report, was 54.9 per cent; technical provisions amounted to AED 68.6 billion; and total invested assets amounted to AED71.4 billion. In line with these developments, the number of new licenses for insurance-related professions increased by 6.3 per cent in 2022.

In summary, the insurance sector in the UAE continued to grow and expand in 2022, driven by a number of factors, including increasing demand, effective risk management, and the growth of the economy. This growth is expected to continue in the coming years, as the UAE remains a strong and dynamic market for insurance.