The general insurance market in the United Arab Emirates (UAE) is projected to grow at a compound annual growth rate (CAGR) of 10%, increasing from AED 46.2 billion ($12.6 billion) in 2024 to AED 74.4 billion ($20.2 billion) by 2029, in terms of gross written premium (GWP), according to GlobalData, a leading data and analytics company.
According to GlobalData’s UAE General Insurance Report, the country’s general insurance market is estimated to reach AED 52.6 billion ($14.3 billion) in 2025, reflecting a strong annual growth of 13.8%. This growth is driven by the implementation of mandatory health insurance, increasing awareness of personal accident coverage, and the rising demand for property and motor insurance due to an increase in natural disasters.
Swarup Kumar Sahoo, Senior Insurance Analyst at GlobalData, comments: “The ongoing digital transformation, including innovations like telematics and wearable technology, is revolutionizing pricing models and increasing operational efficiency of the UAE’s general insurance industry. Alongside this, the introduction of mandatory health insurance for private sector employees and domestic workers, effective January 2025, is expected to significantly broaden the market, while the rising awareness of personal accident coverage will further stimulate demand.”
Personal Accident and Health (PA&H) insurance is the largest line of business and is expected to account for 61.2% of the general insurance GWP in the UAE in 2025. The PA&H segment is projected to grow by 15.1% in 2025.
Increased demand from private sector employers and domestic workers, coupled with enhanced coverage requirements, is expected to boost health premiums and policy uptake. Additionally, the alarming rise in road fatalities, particularly among young adults, underscores the urgent need for personal accident coverage, further propelling demand. Despite challenges such as inflation and increased claims, the PA&H sector is projected to register robust growth, rising at a CAGR of 9.7% during 2025-29.
Sahoo adds: “The expansion of health coverage across the Emirates may also lead to a rise in claims, contributing to premium adjustments. Health insurance premiums are expected to increase by 10-20% in 2025.”
Property insurance is the second-largest line of business, with an estimated 12.6% share of the general insurance GWP in 2025. The line, which grew by 9.9% in 2024, is expected to register 8.1% growth in 2025. The growth is significantly influenced by the increasing frequency of natural disasters, which led to a 35.8% rise in claims paid in 2024.
Sahoo continues: “The aftermath of the severe flash floods in 2024 has prompted insurers to adjust their strategies, resulting in higher premiums and stricter underwriting practices. Despite these challenges, the UAE’s ambitious clean energy initiatives and infrastructure investments are expected to stimulate the construction sector, fostering demand for property insurance. As the market adapts to heightened risks, the balance between rising costs and growth opportunities will shape the future landscape of property insurance.”
Motor insurance is the third-largest line of business, estimated to account for 9.9% of the general insurance GWP in 2025. This line of business is set to grow at a CAGR of 4.9% during 2025-29, driven by rising premiums, particularly following the April 2024 floods that caused substantial vehicle damage. With comprehensive and third-party insurance rates surging by 25-35% in 2024, insurers are adapting to increased operational costs and competitive pressures.
The government’s push for electric vehicle (EV) adoption, alongside with initiatives to enhance consumer incentives, is reshaping the country’s motor insurance landscape. The anticipated stabilization of rates by 2025, coupled with the increased adoption of EVs and autonomous transport, suggests a dynamic future for motor insurance.
Other general insurance lines, such as Marine, Aviation, Transit, and Miscellaneous, are estimated to account for the remaining 16.3% share of the general insurance GWP in 2025.
Sahoo concludes: “As the UAE’s general insurance market is projected to record significant growth over the next few years, insurers need to navigate challenges such as rising claims, inflation, and geopolitical tensions in the Middle East to maintain profitability and adapt to the evolving landscape. Although the current conflict between Israel and Iran is expected to increase energy and MAT premiums, any exposure to the war risk may significantly increase claims and negatively impact insurers’ profitability.”
