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Insurance Canvas of the UAE: Tradition Meets Transformation

February 26, 2026

The United Arab Emirates (UAE) has emerged as one of the most dynamic insurance markets in the Middle East region, blending traditional strengths with digital innovation and Sharia-compliant offerings.

With a substantial market size, the UAE stands as the second-largest insurance hub in the GCC, driven by high penetration rates, regulatory reforms, and sectoral diversification.

The UAE’s insurance market is seeing an upward trend and some key factors that are aiding this segments grow are –

1) Increasing awareness of insurance products in the Emirates,

2) Government regulation for insurance coverage,

3) Increasing expat population,

4) Fast pace of urbanisation, and

5) Use of technology in insurance services.

When it comes to coverage, the canvas of the UAE’s insurance market is spread across areas property, liability, motor, health, travel, and marine insurance domain.

There is another category on UAE’s insurance sector i.e., End-User. This segment covers individual consumers, Small and Medium Enterprises (SMEs), large corporations, and government entities.

Market Size and Penetration

Insurance penetration in the UAE is the highest in the GCC, with nearly universal uptake in mandatory lines such as health and motor insurance. The non-life segment dominates, accounting for more than two-thirds of premiums, while life insurance is embryonic compared to global benchmarks. In the health insurance segment, it is buoyed by compulsory coverage in Dubai and Abu Dhabi. It is the single largest contributor, tailed by motor and property insurance. In a report the Middle East Insurance Review has forecast that driven by UAE’s economic growth and increasing expatriate population, the insurance sector is likely to maintain double-digit growth in 2026.

An interesting feature of the UAE’s insurance market is that it is a canvas of contrasts—traditional yet innovative, local yet global, transactional yet relationship-driven. With strong regulatory oversight, high penetration, and sectoral diversity, it is poised for sustained growth. Local champions anchor the market, foreign players bring expertise, takaful operators cater to ethical needs, and insurtechs (InsurTech, short for “insurance technology,” refers to the use of innovative technologies) drive digital transformation. Reinsurance remains indispensable, underpinning the system’s resilience against large-scale risks.

As the UAE continues to diversify its economy and attract global investment, insurance sector is all set to play a central role in safeguarding assets, enabling growth, and fostering trust.

According to Statista (2025) report “The market size of the insurance industry in the United Arab Emirates (UAE) was valued at 12.4 billion U.S. dollars, making it the second largest in the Gulf Cooperation Council (GCC) region.” It also notes that the ownership of insurance in the UAE is around 96 percent, which is the highest rate among the Middle Eastern countries. Statista further says the UAE also has the highest insurance penetration rate in the GCC region.

Alpen Capital, a financial advisory services firm based in the GCC region, in its report says ‘The GCC insurance market is expected to grow at an annualised growth rate of 5.3%, reaching an estimated US$ 44.4 billion in 2028 from US$ 34.3 billion in 2023.

Strategies Shaping the Industry

Many factors are shaping the UAE’s insurance industry as the Emirates is fast urbanising and developing at a fast pace to keep abreast with growth of world economy.l

Digital Transformation

The pandemic (COVID-19) accelerated digital adoption, forcing insurers to rethink distribution. Mobile apps, online portals, and partnerships with InsurTech firms have become mainstream. Platforms like Bayzat and Policybazaar UAE are redefining customer experience, offering comparison tools and seamless on boarding.

Customer-Centric Models

Insurers are moving away from transactional sales toward relationship-driven strategies. Insurance companies are increasingly prioritizing lifetime value, transparency, and tailored products as core drivers of sustainable growth. Health insurers, for instance, offer wellness programmes, telemedicine access, and preventive care benefits to retain customers in a highly competitive market.

Regulatory Push

The UAE Central Bank (CBUAE) has tightened solvency and capital adequacy requirements, encouraging consolidation. Smaller players are merging or exiting, while larger firms strengthen their positions. The regulatory framework emphasises consumer protection, aligning with international standards to boost investor confidence.

Diversification

As a key strategy, insurers are diversifying to enter into specialty areas such as cyber risk, liability, and trade credit insurance. With the UAE positioning itself as a global business hub, demand for complex risk coverage is rising. Sectors such as Energy, Aviation, and Infrastructure are increasingly looking for bespoke solutions as a result reinsurance is gaining ground.

The Big Players

The UAE insurance market is a blend of local champions, foreign expertise, and takaful operators.

Here is a peak view of the key insurance players in the Emirates.

Local Leaders: Abu Dhabi National Insurance Company (ADNIC), Orient Insurance, and Sukoon Insurance dominate motor, health, and corporate lines.

Foreign Entrants: AXA (now GIG Gulf), Zurich, MetLife, and Cigna bring international expertise, particularly in life and health insurance.

Takaful Operators: SALAMA, Takaful Emarat, and AMAN provide Sharia-compliant products, helping customers seeking ethical and religiously aligned coverage.

Emerging InsurTechs: Bayzat, Policybazaar UAE, and YallaCompare are reshaping distribution, focusing on SMEs and retail customers with digital-first solutions.

Major Sectors Insuring Assets

Insurance in the UAE is closely tied to its key economic pillars:

Aviation and Shipping: Emirates, Etihad, and DP World insure fleets, cargo, and logistics operations.
Energy and Oil/Gas: ADNOC and related firms insure exploration, refining, and transport assets.
Real Estate and Construction: Mega-projects such as Expo 2020 legacy sites, high-rise towers, and infrastructure developments are heavily insured.
Healthcare: Hospitals, clinics, and medical professionals insure facilities and staff.
Financial Services: Banks and fintech firms insure against operational risks, cyber threats, and employee liabilities.

Reinsurance, the Invisible Backbone

Reinsurance plays a pivotal role in the UAE, allowing local insurers to manage large-scale risks and maintain solvency. Global reinsurers such as Munich Re, Swiss Re, Hannover Re, and SCOR are active in the region, partnering with local firms to spread risk.

Key Areas of Reinsurance

Energy and Infrastructure – Mega-projects and oil exploration carry risks too large for local insurers alone. So Reinsurance steps in.
Aviation and Marine – Aircraft fleets, shipping lines, and ports require reinsurance to mitigate high-value risks.
Health Insurance – Rising medical costs and pandemic-related (Covid-19) claims necessitate reinsurance support.
Property and Catastrophe – Fire, natural disasters, and large-scale property losses are reinsured to protect balance sheets.

Emerging Trends to Watch

AI-driven underwriting and claims automation
Cyber insurance for financial and tech firms
Green insurance products tied to sustainability goals
Consolidation among smaller players

As the UAE continues to diversify its economy and attract global investment, insurance will continue to play a vital role in safeguarding assets, enabling growth, and fostering trust. The canvas is vibrant, layered, and evolving—reflecting the UAE’s broader journey as a hub of innovation, commerce, and resilience.

Five Things You Need to Know About UAE Insurance

1. The UAE has the highest insurance penetration in the GCC.

2. Health insurance alone makes up over 40% of premiums, this is due to mandatory coverage.

3. Over 60 licensed insurers compete in the UAE—leading to price wars.

4. Life insurance uptake is under 10%, despite high incomes.

5. The UAE is positioning itself as a regional reinsurance hub for MENA.

Fast Facts

Market Size: USD 12–15 billion

Largest Segment: Non-life insurance (motor, health, property)
Top Local Player: ADNIC – Abu Dhabi National Insurance Company PJSC
Top Foreign Player: AXA/GIG Gulf
Top Takaful Provider: SALAMA

Future Watch

Cyber Insurance: Rising demand from banks and fintechs.
Green Insurance: ESG-linked products for sustainable projects. AI Claims: Predictive analytics transforming underwriting.
Takaful Growth: Expanding Sharia-compliant offerings.

Top 5 Insurers by Market Share

1. ADNIC – Market leader in corporate and health lines.

2. Orient Insurance – Strong in motor and retail.

3. Sukoon Insurance – Diversified across UAE and GCC.

4. AXA/GIG Gulf – International expertise in life and health.

5. SALAMA – Leading Sharia-compliant takaful provider.

Reinsurance Hotspots

Energy & Oil/Gas – Catastrophic risks demand global reinsurance.
Aviation & Marine – High-value fleets and cargo insured globally.
Healthcare – Pandemic-driven claims require risk-sharing.
Property & Catastrophe – Fire, natural disasters, and mega-projects.

Major Local Insurance Providers

Abu Dhabi National Insurance Company (ADNIC) – Established in 1972, headquartered in Abu Dhabi. Offers multi-line insurance and reinsurance services.
Sukoon Insurance (formerly Oman Insurance Company) – Founded in 1975, one of the largest insurers in the Gulf region, with multiple UAE branches.
Orient Insurance – A leading UAE-based insurer with strong regional presence.
Dubai National Insurance & Reinsurance (DNIR) – Provides a wide range of insurance solutions.
Emirates Insurance Company – Established in Abu Dhabi – offers general and life insurance.
Union Insurance Company – Based in Ajman- deals in health, motor, and general insurance.
RAK Insurance – Headquartered in Ras Al Khaimah – serves in individuals and corporates sector.
Al Wathba National Insurance Company – Abu Dhabi-based- deals in motor, medical, and property insurance.
Salama Islamic Arab Insurance Company – Specialises in Sharia-compliant Takaful insurance.
Takaful Emarat Insurance – Focuses on life and health insurance under Islamic principles.
Watania Takaful Insurance – Another key player in the Takaful sector.
Yas Takaful Insurance – Provides Islamic insurance solutions.

Foreign Insurance Companies in the UAE

AXA Gulf (part of AXA Group, France) – Offers health, motor, travel, and corporate insurance.
Allianz (Germany) – Focuses on global health, corporate, and specialty insurance services.
Zurich Insurance (Switzerland) – Deals in life, savings, and general insurance.
MetLife (USA) – Strong presence in life and medical insurance.
Cigna (USA) – Specialises in health insurance, particularly for expatriates.
Aetna International (USA) – Provides global health insurance solutions.
RSA Insurance (UK) – Offers motor, home, and commercial insurance.
Generali (Italy) – Provides life and general insurance products. Chubb (USA) – Known for corporate and specialty insurance.
Munich Re (Germany) – Operates mainly in reinsurance.

UAE Insurance Market Overview: Q1 2024–2025 Performance*

Highlights:

In Q1 of 2025, gross written premiums, number of insurance policies and gross paid claims increased by 13.8 %, 17.4 %, and 18.3%, respectively.
Total technical provisions and total equity showed, respectively, an increase of 18.7% and 10.5% in Q1 2025.
The insurance sector remained well capitalised in Q1 2025, with healthy capital adequacy and return on average assets.

In the Quarterly Economic Review June 2025 of the Central Bank of UAE (CBUAE) revealed that the UAE insurance sector continued its growth in Q1 of 2025 in terms of written premiums, Technical Provisions, claims paid and equity. The report mentioned that the sector demonstrated well-capitalised, with healthy capital adequacy ratios and return on assets. According to it, the number of licensed insurance companies in the UAE is 59, comprising 23 traditional national and 10 takaful national companies, and 25 branches of foreign insurance companies and one branch of a foreign reinsurance company operating in the UAE. The number of insurance related professions increased to 504.

OPTIONAL INFO, IF NEEDED.

Key Performance Indicators

The CBUAE, in the review said the Gross Written Premiums (GWP) increased by 13.8% Y-o-Y to AED 23.9 billion in Q1 2025, mostly due to an increase in health insurance premiums by 14.2%, property and liability insurance premiums by 13.9%, and insurance of persons and fund accumulation premiums by 11.1%, resulting primarily from an increase in individual life insurance premiums. Total gross paid claims across all insurance categories rose by 18.3% year-on-year to AED 11.0 billion in Q1 2025. This total included AED 6.0 billion in health insurance claims, AED 4.5 billion in property and liability claims, and AED 0.5 billion related to insurance of persons and fund accumulation. In Q1 (the first four months of) 2025, the technical provisions (total) increased by 18.7% Y-o-Y to AED 100.1 billion. The volume of invested assets in the insurance sector was AED 71.6 billion (50.4 % of total assets) compared to AED 78.5 billion (53.6 % of total assets) during the same period in 2024.

Over all, the UAE insurance sector remained well-capitalised. In terms of profitability, the net total profit to net written premiums ratio reached 7.3% in Q1 2025. The return on average assets ratio was 0.8% in Q1 2025 compared to 0.6% in Q1 of the previous year.