UAE Life & Annuity Insurance Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 9.00 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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UAE Life & Annuity Insurance Market Analysis
UAE's Life and Annuity Insurance Market has generated a revenue of USD 4 billion in the current year and is poised to register a CAGR of 9% for the forecast period. The United Arab Emirates (UAE) life and annuity insurance market has been experiencing steady growth in recent years. The life insurance industry was expected to grow, especially since COVID-19 raised consumer awareness of financial and health concerns. As a result, demand for life insurance and related products rose. Despite the rise in demand, COVID-19 had a major impact on the intermediate side of the industry's distribution operations, which depended on face-to-face interaction, an impractical approach during the pandemic. As a result, the pandemic re-emphasized the importance of being able to engage consumers directly through digital platforms. On a macroeconomic level, the UAE is forecasting typical growth rates, which would support demand growth in the retail and group insurance segments.
UAE's life and annuity insurance market has witnessed significant expansion due to factors such as population growth, rising affluence, and increased awareness of the importance of insurance. Life insurance products in the UAE encompass various coverage options, including term life insurance, whole life insurance, and universal life insurance. These products provide financial protection to policyholders and their beneficiaries in case of death or other defined events. Life insurance is sought after for its ability to offer financial security, estate planning, and inheritance protection. The UAE Insurance Authority regulates the insurance industry in the country, including life and annuity insurance. The authority sets guidelines and regulations to ensure fair practices, solvency, and consumer protection. The regulatory framework provides a stable and transparent environment for insurance companies operating in the UAE.
UAE Life & Annuity Insurance Market Trends
COVID-19 Impact Driving the Market to New Flexible Business Models
The COVID-19 outbreak and the resulting market instability impacted the life insurance and annuity industries. Given the unusual level of uncertainty, it was estimated that insurers would confront both short- and long-term challenges in maintaining business continuity and profitability. If individuals were unable or unwilling to pay premiums to keep their policies active, life insurers were to see an increase in policy lapses in certain parts of their business. This pattern was expected to continue until the economy began to improve. Companies that could identify lapsed policyholders who were most likely to repurchase insurance might have a competitive edge in regaining business. Life insurance penetration in the United Arab Emirates (UAE) has been steadily increasing over the years, but it remains relatively low compared to some other developed countries. Penetration refers to the percentage of life insurance premiums as a proportion of the country's GDP. The UAE's life insurance market has significant growth potential due to several factors. The country's strong economic growth, rising middle class, and increasing awareness of the importance of insurance are driving the demand for life insurance products. As the population continues to expand, and with a growing focus on financial planning and protection, there is an opportunity for the life insurance sector to further develop.
Government Regulations and Economic Diversification Initiatives
The government is taking numerous initiatives to reduce the reliance on oil-based sectors. Public-private partnerships are being encouraged, and 100% foreign ownership is being allowed in 13 sectors. The eligible sectors are expected to offer new economic opportunities for international investors looking to explore the UAE market, particularly for projects involving e-commerce, research laboratories, advancement in biotechnology, logistics, and supply chain, production of solar panels, hybrid power plants, and green technology. As the diversification efforts are thriving strongly, the immigrant population in the country, who migrate for work purposes, will gradually increase with bigger projects being undertaken. There is a huge opportunity for the insurance sector since the United Arab Emirates mandates employers to provide all employees with insurance. An increase in employment levels in all these sectors may open up opportunities for insurance providers. The government is also making efforts to ease residency policies in the country, which will attract the high-net-worth and immigrant population to stay back for longer durations, helping the economy. Regulations are focused on attracting students and specialists. A 10-year residence visa was introduced for highly skilled workers and investors who can increase opportunities for the insurance sector, in the belief that a longer stay duration may motivate ex-pats to invest in insurance.
UAE Life & Annuity Insurance Industry Overview
The presence of both domestic and international insurance companies characterizes the United Arab Emirates (UAE) life insurance market. Several local insurance companies operate in the UAE and offer life insurance products. These companies have a strong understanding of the local market dynamics and cater to the specific needs of UAE residents. Many well-known international insurance companies have established a presence in the UAE to tap into the growing demand for life insurance. These companies bring global expertise, financial strength, and a wide range of insurance products to the UAE market. Some major insurers operating in the UAE include Orient Insurance, Abu Dhabi National Insurance Company, Al Ain Ahlia Insurance Company, SALAMA, and Emirates Insurance Company.
UAE Life & Annuity Insurance Market Leaders
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Orient Insurance
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Abu Dhabi National Insurance Company
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Al Ain Ahlia Insurance Company
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SALAMA
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Emirates Insurance Company
*Disclaimer: Major Players sorted in no particular order
UAE Life & Annuity Insurance Market News
- May 2023: Oman Insurance Company P.S.C. ('Sukoon') completed the acquisition of 93.0432% of the share capital of Arabian Scandinavian Insurance Company P.S.C. (ASCANA) by way of the special deal through Dubai Clear. Sukoon signed a share purchase agreement in December 2022 to acquire a majority stake of more than 93% in the DFM-listed takaful insurer.
- September 2022: U.A.E. Central Bank and Sama signed a preliminary deal to supervise the insurance sector. The agreement was to boost investment and trade ties between the two countries. As part of the agreement, the two countries were to exchange supervisory and regulatory information related to solvency rules, the calculation of technical allocations, investment policy rules, and procedures related to supervision, follow-up, and enforcement of regulations on insurance companies, including cross-border companies.
UAE Life & Annuity Insurance Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2. RESEARCH METHODOLOGY
- 2.1 Analysis Methodology
- 2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Increased Awareness of Insurance
- 4.2.2 Expanding Distribution Channels
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4.3 Market Restraints
- 4.3.1 Lack of Financial Literacy
- 4.3.2 Investment Returns and Market Volatility
- 4.4 Insights on Various Regulatory Trends Shaping the Market
- 4.5 Insights on impact of technology in the Market
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4.6 Industry Attractiveness - Porter's Five Forces Analysis
- 4.6.1 Bargaining Power of Buyers
- 4.6.2 Bargaining Power of Suppliers
- 4.6.3 Threat of New Entrants
- 4.6.4 Threat of Substitutes
- 4.6.5 Intensity of Competitive Rivalry
- 4.7 Industry Policies and Regulations
- 4.8 Impact of COVID - 19 on the Market
5. MARKET SEGMENTATION
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5.1 By Insurance Type
- 5.1.1 Individual Insurance
- 5.1.2 Annuity Insurance
- 5.1.3 Endowment Insurance
- 5.1.4 Whole Life Insurance
- 5.1.5 Other Insurance Types
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration Overview
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6.2 Company Profiles
- 6.2.1 Orient Insurance Company
- 6.2.2 Abu Dhabi National Insurance Company
- 6.2.3 Al Ain Ahlia Insurance
- 6.2.4 SALAMA
- 6.2.5 Emirates Insurance Company
- 6.2.6 Dubai Insurance Company
- 6.2.7 Union Insurance Company
- 6.2.8 Dubai National Insurance & Reinsurance PSC
- 6.2.9 AXA Green Crescent Insurance
- 6.2.10 Oman Insurance Company*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
UAE Life & Annuity Insurance Industry Segmentation
Life insurance is a contract between a life insurance company and a policy owner. A life insurance policy guarantees the insurer pays a sum of money to one or more named beneficiaries when the insured person dies in exchange for premiums paid by the policyholder during their lifetime. The UAE Life and Annuity Insurance Market is segmented by Insurance Type (Individual Insurance, Annuity Insurance, Endowment Insurance, Whole Life Insurance, and Other Insurance Types). The report offers market size and forecasts for the UAE Life and Annuity Insurance Market in value (USD) for all the above segments.
| By Insurance Type | Individual Insurance |
| Annuity Insurance | |
| Endowment Insurance | |
| Whole Life Insurance | |
| Other Insurance Types |
UAE Life & Annuity Insurance Market Research FAQs
What is the current UAE Life and Annuity Insurance Market size?
The UAE Life and Annuity Insurance Market is projected to register a CAGR of greater than 9% during the forecast period (2024-2029)
Who are the key players in UAE Life and Annuity Insurance Market?
Orient Insurance, Abu Dhabi National Insurance Company, Al Ain Ahlia Insurance Company, SALAMA and Emirates Insurance Company are the major companies operating in the UAE Life and Annuity Insurance Market.
What years does this UAE Life and Annuity Insurance Market cover?
The report covers the UAE Life and Annuity Insurance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the UAE Life and Annuity Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
UAE Life and Annuity Insurance Industry Report
Statistics for the 2024 UAE Life and Annuity Insurance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UAE Life and Annuity Insurance analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
