The UAE insurance sector recorded strong growth in 2025, with gross written premiums rising 14.9 per cent year-on-year to Dh74.8 billion, supported by higher health, property and liability insurance business, according to the Central Bank of the UAE’s annual statistical report.
Property and liability insurance premiums increased 14.1 per cent to Dh36.4 billion, while health insurance premiums rose 16.3 per cent to Dh30 billion. Premiums for life insurance and fund accumulation increased 12.1 per cent to Dh8.4 billion.
The growth came as the UAE continued to expand insurance coverage and introduced mandatory basic health insurance for private-sector employees and domestic workers across the emirates from January 1, 2025. The Central Bank said the move provided a stronger foundation for health insurance coverage and supported greater financial inclusion.
Health insurance takes the biggest share
Health insurance was the largest individual line of business in 2025, accounting for Dh36.42 billion in gross written premiums when national and foreign insurers are combined, according to the report’s detailed business-line data.
Motor and transportation insurance generated around Dh10.08 billion, while fire insurance reached Dh6.89 billion.
The total number of insurance policies reached 17.3 million in 2025, up slightly from 17.2 million a year earlier. The Central Bank said health insurance policies rose 26.1 per cent, helping offset declines in some other insurance categories.
Claims reach Dh46.2 billion
Insurers paid Dh46.2 billion in claims during 2025, an increase of 11 per cent from the previous year.
Health insurance claims increased 15.1 per cent year-on-year, while property and liability claims rose 13.8 per cent. Within that segment, marine insurance claims increased 34.7 per cent and fire insurance claims rose 27.4 per cent.
Despite the increase in paid claims, the sector’s overall gross loss ratio improved to 65.1 per cent from 68.9 per cent in 2024. The health insurance loss ratio eased to 75.3 per cent from 77.4 per cent.
Insurance profits rise to Dh4 billion
Total profits generated by UAE insurance companies increased to Dh4 billion in 2025, from Dh2.6 billion in 2024, with the Central Bank attributing the increase mainly to higher net investment income.
Insurers also increased their invested assets by 13.5 per cent to Dh96.4 billion, equivalent to 58.4 per cent of their total assets, compared with Dh84.9 billion a year earlier.
Securities and debt instruments accounted for Dh43.7 billion of invested assets, while cash and deposits reached Dh27 billion.
The sector maintained solid capital levels, with the solvency capital requirement ratio reaching 199 per cent in 2025, compared with 196 per cent in the previous year.
There were 58 insurance companies operating in the UAE in 2025, including 22 national traditional insurers, 10 national takaful companies and 26 foreign insurance branches. The number of licensed insurance-related professions rose to 515 from 495 in 2024.
Source: Khaleej Times