The UAE insurance industry will see a 20% growth in 2025, as per a new study by S&P Global Ratings. The impetus for growth comes from growing demand for life, health, and property insurance, coupled with regulatory reforms and economic growth. With government support, insurers will be able to tap into new opportunities in both personal and corporate markets.
The report points out that Gulf nations collectively will experience positive insurance market growth, owing to a rise in infrastructure investments, digitalization, and compulsory insurance policies. In the UAE, population growth, increased disposable incomes, and a growing expatriate labor force are driving the need for comprehensive coverage across various sectors.
One of the major drivers for this growth is the accelerated digitization of the insurance sector, enabling firms to provide quicker, more tailored services. Moreover, tighter regulatory regimes are building confidence among consumers, encouraging households and enterprises to demand more financial security through insurance products.
As efforts at economic diversification throughout the Gulf persist, the insurance industry is proving to be a vital part of financial stability. Experts foresee that if trends continue, the UAE insurance market will outstrip early estimates, securing its place as a regional powerhouse of financial services.
