Market Size of UAE Life & Non-Life Insurance Industry
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR (2024 - 2029) | 4.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
UAE Life & Non-Life Insurance Market Analysis
The UAE Life & Non-Life Insurance Market is expected to register a CAGR of greater than 4% during the forecast period.
The UAE Life & Non-Life Insurance Market is expected to register a CAGR of more than 4% during the forecast period.
The COVID-19 pandemic did not stop insurance regulators in UAE from taking steps to strengthen the industry. It enacted new life insurance regulations in October 2020 to better control market dynamics and ensure customer rights. One of the regulations’ main changes was a substantial decrease in first-year life insurance commissions for long-term contracts – a change promoted as part of a package of new rules to reduce misselling and improve customer transparency.
In early 2021, the Central Bank of the UAE launched its merger with the country’s Insurance Authority to raise the efficiency of the insurance sector and the competitiveness of the local markets. Any increase in regulatory capital requirements could drive market consolidation. Insurers are currently required to hold minimum capital of AED 100 million. Raising this requirement would mean several smaller insurers could need to raise extra capital, or merge with competitors, to meet the new requirements.
Currently, 40% of listed non-life insurers (excluding health insurers) hold less than AED 250 million of capital. UAE has limited opportunities to grow its health insurance sector, characterized by well-established sub-sector penetration with around 50% of non-life premiums from health insurance. Medical inflation remains significant, and insurance companies to struggle to produce underwriting profits on their health business lines over the next few years.
UAE Life & Non-Life Insurance Industry Segmentation
Life insurance provides a lump sum amount of the sum assured at the time of maturity or in case of the death of the policyholder. Non-life insurance policies offer financial protection to a person for health issues or losses due to damage to an asset.
The UAE Life & Non-Life Insurance Market is segmented by insurance type (Life Insurance (Individual and Group), Non-Life Insurance (Motor, Home, and Other Non-Life Insurances)), and by distribution channel (Direct, Agency, Banks, and Other Distribution Channels). The report offers market size and forecasts for UAE Life & Non-Life Market in value (USD Billion) for all the above segments.
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UAE Life & Non-Life Insurance Market Size Summary
The UAE Life & Non-Life Insurance Market is poised for steady growth, driven by regulatory reforms and technological advancements. The COVID-19 pandemic acted as a catalyst for the industry, prompting regulators to implement new life insurance regulations aimed at enhancing market dynamics and protecting consumer rights. These changes included a significant reduction in first-year life insurance commissions for long-term contracts to combat misselling and improve transparency. The Central Bank of the UAE's merger with the Insurance Authority in 2021 aimed to boost sector efficiency and market competitiveness. However, potential increases in regulatory capital requirements could lead to market consolidation, as many non-life insurers currently hold capital below the stipulated threshold. The health insurance segment, despite its rapid growth since the introduction of compulsory coverage, faces challenges such as medical inflation and the struggle to achieve underwriting profits.
The insurance industry in the UAE is undergoing a transformation, with a focus on digitalization and automation to enhance product standardization and simplify online purchasing processes. Companies are leveraging technologies like artificial intelligence and predictive analytics to drive modernization efforts. The market is characterized by the presence of major international players, with domestic and international companies expanding their market presence through technological innovation and new contracts. Recent initiatives, such as the unemployment insurance scheme and bespoke health insurance services for Free Zone companies, reflect the industry's efforts to attract talent and investment. Key players in the market include Orient Insurance, AIG, MetLife, AXA, and Allianz, who continue to shape the competitive landscape.
UAE Life & Non-Life Insurance Market Size - Table of Contents
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1. MARKET DYNAMICS AND INSIGHTS
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1.1 Market Overview
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1.2 Market Drivers
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1.3 Market Restraints
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1.4 Industry Attractiveness - Porter's Five Forces Analysis
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1.4.1 Threat of New Entrants
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1.4.2 Bargaining Power of Buyers
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1.4.3 Bargaining Power of Suppliers
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1.4.4 Threat of Substitutes
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1.4.5 Intensity of Competitive Rivalry
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1.5 Insights on Various Regulatory Landscape
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1.6 Insights on Impact of Technology and Innovation in the Market
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1.7 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Life insurance
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2.1.1.1 Individual
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2.1.1.2 Group
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2.1.2 Non- life insurance
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2.1.2.1 Motor
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2.1.2.2 Home
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2.1.2.3 Marine
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2.1.2.4 Other insurance
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2.2 By Distribution channel
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2.2.1 Direct
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2.2.2 Agents
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2.2.3 Banks
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2.2.4 Other distribution channels
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UAE Life & Non-Life Insurance Market Size FAQs
What is the current UAE Life & Non-Life Insurance Market size?
The UAE Life & Non-Life Insurance Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)
Who are the key players in UAE Life & Non-Life Insurance Market?
Orient Insurance, AXA, MetLife, AIG and Alliance Insurance are the major companies operating in the UAE Life & Non-Life Insurance Market.
