Non-life insurances - United Arab Emirates

United Arab Emirates

The Non-life insurances market market in the United Arab Emirates is expected to reach a projected market size (gross written premium) of US$5.58bn in 2024.
The average spending per capita in this market is estimated to amount to US$581.20 in 2024.
It is projected that the gross written premium will experience an annual growth rate (CAGR 2024-2028) of 3.53%, resulting in a market volume of US$6.41bn by 2028.
In comparison to other countries globally, the United States is expected to generate the highest gross written premium of US$3,371.0bn in 2024.
The non-life insurance market in the United Arab Emirates is experiencing significant growth due to the increasing awareness and demand for comprehensive coverage among the country's affluent population.

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Analyst Opinion

The Non-life insurances market in United Arab Emirates is experiencing significant growth and development.

Customer preferences: Customers in the UAE are increasingly seeking comprehensive non-life insurance coverage to protect their assets and investments. With the rise in high-value properties, vehicles, and businesses in the country, there is a growing demand for insurance products that offer extensive coverage against various risks.

Trends in the market: One notable trend in the UAE's non-life insurance market is the increasing adoption of digital channels for purchasing insurance policies. Customers are now more inclined towards online platforms for comparing different insurance products, obtaining quotes, and making transactions conveniently. This shift towards digitalization is driven by the tech-savvy population in the UAE and the convenience it offers in the fast-paced lifestyle of the country.

Local special circumstances: The UAE's strategic location as a business hub in the Middle East has attracted a large expatriate population who also contribute to the growth of the non-life insurance market. Expatriates often seek insurance coverage for their assets and health while residing in the country, leading to a diverse customer base for insurance providers. Additionally, the stringent regulatory environment in the UAE ensures that insurance companies maintain high standards of service and protection for policyholders.

Underlying macroeconomic factors: The strong economic growth and increasing wealth in the UAE are key drivers of the non-life insurance market. As individuals and businesses accumulate more assets, there is a greater need for insurance products to safeguard against potential risks and liabilities. The stable political environment and government initiatives to promote financial security also contribute to the overall growth of the non-life insurance sector in the UAE.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.