MENA Newswire News Desk: – The UAE’s insurance sector saw significant growth in 2023, with total profits reaching AED 2.5 billion, according to a report released by the Central Bank of the UAE (CBUAE). This marks a notable increase from AED 1.96 billion in 2022, driven primarily by a rise in net investment income across the sector. The CBUAE’s Annual Statistical Report for the Insurance Sector revealed that the total number of written insurance policies in the UAE grew sharply, reaching 14.6 million in 2023, compared to 8.4 million policies issued the previous year.
The increase was largely attributed to higher demand for property and liability insurance, particularly Involuntary Loss of Employment insurance. Dubai led the insurance market in 2023, accounting for 59.9% of the total policies issued, while Abu Dhabi’s share stood at 21%. Other emirates such as Ras Al Khaimah, Sharjah, Fujairah, and Ajman followed with 6.6%, 4.58%, 1%, and 0.5%, respectively. Notably, 6.4% of policies were written outside the UAE, further highlighting the sector’s broad reach.
Gross written premiums also experienced growth, increasing to AED 50.4 billion in 2023 from AED 44.1 billion in 2022. Dubai contributed 61% of these premiums, while Abu Dhabi accounted for 27.7%, underscoring the dominance of the two emirates in the sector. Meanwhile, gross paid claims rose to AED 30.3 billion in 2023, compared to AED 26.5 billion in 2022. Dubai once again took the lead, representing 60.7% of these claims, with Abu Dhabi following at 28.9%. The CBUAE report highlights a robust performance in the UAE’s insurance sector in 2023, driven by increases in both written policies and gross premiums. The growth was largely led by Dubai and Abu Dhabi, further solidifying their leading roles in the country’s insurance market.