The UAE insurance sector expanded further in 2024 as total underwritten premiums rose 22% year-on-year to AED 65.1 billion, up from AED 53.4 billion in 2023, according to data from the Federal Competitiveness and Statistics Centre (FCSC) and the Central Bank of the UAE.
The increase points to higher insurance participation across individuals, businesses, and institutions.
Growth was led by property and liability insurance, where premiums climbed 26.6% to AED 26.3 billion. This segment includes motor, fire, and business-related coverage, which typically grows alongside economic activity and infrastructure development.
Health insurance continued to be the largest segment, with premiums increasing to AED 31.3 billion, as wider coverage and rising healthcare usage drove higher contributions. Premiums from personal insurance and wealth creation products, such as life-related policies, also increased to AED 7.5 billion.
More Policies Taken Up Across Key Segments
The total number of insurance policies issued in the UAE reached 17.2 million in 2024, a 10% increase from the previous year.
The sharpest rise was seen in health insurance policies, which jumped to 2.2 million from 1.4 million in 2023. This increase suggests broader coverage among residents and employees.
Property and liability policies rose to 14.6 million, in line with higher vehicle ownership and business activity, while personal insurance and wealth creation policies recorded a modest increase.
Insurers Set Aside More Funds for Future Claims
Insurance companies increased their technical provisions funds reserved to pay future claims to AED 92.2 billion in 2024, up from AED 76.3 billion a year earlier.
The largest increase came from property and liability insurance, where provisions rose to AED 37.6 billion, mainly due to higher exposure in motor and fire coverage. Health insurance provisions also increased to AED 17.0 billion, in line with rising claims and policy volumes.
Claims Payments Rise as Insurance Usage Increases
Total claims paid by insurance companies rose to AED 41.6 billion in 2024, compared with AED 31.6 billion in 2023. National insurers accounted for AED 28.9 billion of the total, while foreign insurers paid AED 12.7 billion.
The increase was mainly driven by higher payouts in property and liability insurance, particularly motor and fire claims, as well as a rise in health insurance claims. Incurred claims, which include paid claims and related costs, climbed to AED 53.3 billion.
Total invested assets held by insurers increased to AED 84.9 billion in 2024, up from AED 77.1 billion the year before. National insurers held AED 48.6 billion in investments, while foreign insurers accounted for AED 36.3 billion.
Most investments were placed in securities and debt bonds, followed by cash and deposits, providing insurers with liquidity and stable returns. Other investments included real estate and loans.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
