UAE insurance sector achieves strong growth in 2022

The insurance sector in the UAE experienced growth and expansion across several key indicators during 2022, according to a report by the Central Bank of the United Arab Emiratesreflecting a strong, dynamic and active market driven by growing demand and effective risk management.

This will help bolster market liquidity and make it more resilient to any future crisis, according to the apex bank’s annual statistical report on the insurance sector.

The Central Bank noted that the insurance sector in the UAE achieved growth across most key performance indicators in 2022, with gross premium written increasing 6.6% year-on-year to reach AED 47.2 billion. .

The report explains that the number of direct premiums written grew by 11.2% year-on-year to 9.8 million in 2022, indicating the growth of the insured base and increasing market penetration rates. Total paid claims also increased by 4% to AED 27.7 billion, suggesting a similar increase in the utilization of insurance covers and services, reflecting a dynamic and active market.

The retention rate of issued insurance premiums, according to the report, was 54.9%; technical provisions amounted to AED 68.6 billion; and total assets invested amounted to AED 71.4 billion. In line with this development, the number of new licenses for insurance-related professions increased by 6.3% in 2022.

In summary, the insurance sector in the UAE continued to grow and expand in 2022, driven by a number of factors, including increasing demand, effective risk management and growing economy. This growth is expected to continue in the coming years as the UAE remains a strong and dynamic insurance market.

News source: Emirates News Agency