Published: 2026-08-24
The UAE insurance sector closed 2025 with records across every headline metric, according to the annual statistical report on insurance activity published by the Central Bank of the UAE and covered by local media on 2026-08-24. Total sector assets grew 6.1% to AED 164.9 billion, gross written premiums rose 14.9% to AED 74.8 billion, and the combined profit of insurance companies jumped from AED 2.6 billion in 2024 to AED 4 billion, an increase of roughly 53%. The market now counts 17.3 million active policies, 58 licensed insurers and 515 registered insurance-related professions, from brokers to loss adjusters.
The 2025 numbers at a glance
The Central Bank of the UAE supervises the insurance market and publishes its consolidated results every year. The 2025 report shows growth on the balance sheet, in premium income and, most sharply, in profitability:
| Indicator | 2025 | Change vs 2024 |
|---|---|---|
| Total sector assets | AED 164.9 billion | +6.1% (from AED 155.5 billion) |
| Gross written premiums | AED 74.8 billion | +14.9% (from AED 65.1 billion) |
| Combined profit of insurers | AED 4 billion | up from AED 2.6 billion, about +53% |
| Claims paid | AED 46.2 billion | +11% |
| Technical provisions | AED 96.3 billion | +4.4% |
| Invested assets | AED 96.4 billion | 58.4% of total assets |
| Active policies | 17.3 million | health policies +26.1% |
| Licensed insurance companies | 58 | plus 515 insurance-related professions |
Insurance density, the average premium per resident, reached approximately AED 6,500. The premium retention ratio improved to 56% from 54.9% a year earlier, meaning insurers are keeping more of the risk they write instead of passing it to reinsurers.
What is driving the growth
The fastest-moving segment is health insurance: the number of health policies grew 26.1% in a single year. The structural driver is regulatory. Since 2025-01-01 a basic health insurance scheme covering private-sector workers and domestic staff has applied across the Emirates, extending the employer-funded cover that Dubai and Abu Dhabi had already made mandatory. Every new work permit now comes with a health policy behind it, and the UAE labour market kept expanding through 2025.
Population growth and economic activity feed the other lines as well. More residents mean more cars on the road and more motor policies, more tenancy contracts and home cover, more companies buying property, liability and marine insurance. Premium income rising 14.9% while the wider economy grows at single-digit rates shows insurance penetration deepening, not just tracking GDP.
A well-capitalised market that pays its claims
Profitability is only half of the picture. The report shows a sector that is paying out more while strengthening its buffers. Claims paid rose 11% to AED 46.2 billion, technical provisions stand at AED 96.3 billion, and invested assets of AED 96.4 billion make up 58.4% of the balance sheet. Available capital across the sector stands at 455% of the minimum required level, a solvency cushion of more than four times the regulatory floor.
For policyholders this combination matters more than the profit headline: insurers earned AED 4 billion not by cutting payouts but alongside a double-digit increase in settled claims. The sector’s result fits the broader pattern in UAE financial services, where banking, capital markets and Islamic finance are all posting record figures and the state is setting explicit growth strategies for each segment.
What this means for businesses in the UAE
For anyone running or launching a company in the Emirates, insurance is not an optional extra but part of the standard compliance stack. A typical UAE business will deal with several mandatory or near-mandatory covers:
- health insurance for every sponsored employee, required for work permits and residence visas, with basic plans regulated at emirate and federal level;
- motor insurance for any company vehicle, compulsory by federal law;
- work injury cover for staff in line with the UAE Labour Law obligations of the employer;
- professional indemnity insurance, required for a number of licensed activities such as medical, legal, engineering and consultancy services in some jurisdictions;
- property and business interruption cover for offices, warehouses and stock, typically required by landlords and lenders.
A growing, profitable and well-capitalised insurance market works in the buyer’s favour: 58 competing insurers and a broker network of hundreds of firms mean real price competition on group medical plans and commercial packages. Budgeting for these covers belongs in the business plan at the company formation stage, together with licence fees and visa costs, because the health insurance line scales directly with headcount under work visas and residency.
How Atlant Capital can help
Atlant Capital sets up companies in UAE free zones and on the mainland and walks founders through the obligations that follow registration, including the insurance covers their licence and visa quota will require. We help structure the setup budget realistically: licence, visas, medical insurance for the team, office and the corporate bank account. If you are planning a UAE launch and want a clear picture of the running costs behind the licence fee, we will map them line by line before you commit.
Conclusion
The 2025 results confirm the UAE insurance sector as one of the quiet engines of the country’s financial system: AED 164.9 billion in assets, AED 74.8 billion in premiums, profits up by about half and a solvency ratio of 455% of the required minimum. Regulation keeps widening the insured base, most visibly in health cover, and the claims statistics show the growth is backed by actual payouts. For businesses, the practical takeaway is a competitive market for the covers they are obliged to buy anyway.
FAQ
How big is the UAE insurance market in 2025?
According to the Central Bank of the UAE annual report, total sector assets reached AED 164.9 billion in 2025, up 6.1% from AED 155.5 billion in 2024. Gross written premiums rose 14.9% to AED 74.8 billion, and the market counted 17.3 million active policies served by 58 licensed insurers.
How profitable was the UAE insurance sector in 2025?
The combined profit of UAE insurance companies jumped from AED 2.6 billion in 2024 to AED 4 billion in 2025, growth of roughly 53%. At the same time claims paid rose 11% to AED 46.2 billion, so profitability improved alongside higher payouts, not at their expense.
Is health insurance mandatory in the UAE?
Yes. Employers must provide health insurance for sponsored employees, and since 2025-01-01 a basic health insurance scheme for private-sector workers and domestic staff applies across all seven emirates. This is the main reason health policies grew 26.1% in 2025 and health remains the largest insurance line in the country.
How many insurance companies operate in the UAE?
The Central Bank of the UAE reported 58 licensed insurance companies and 515 insurance-related professions, such as brokers and loss adjusters, operating in 2025. Sector-wide available capital stood at 455% of the minimum required level, indicating a strongly capitalised market.
