UAE leads the GCC insurance sector growth

UAE leads the GCC insurance sector growth

Dubai: UAE retained its position as largest insurance market in the GCC accounting for 43.7 per cent the region’s gross written premiums (GWP) in 2020, and is forecast to retain its strong growth trend in 2021-26 according to data compiled by Alpen Capital. The UAE’s insurance premiums are expected to grow at a CAGR of 4.1 per cent between 2021 - 2026. Expansion of compulsory business lines, growing standards of regulation and supervision as well as favorable immigration policies are likely to support its growth. Saudi Arabia came second in the ranking with 39.1 per cent share of the GWP. UAE maintained its position as the leading insurance market, growing at a CAGR of 2.8 per cent between 2015 and 2020, largely due to its diversified expatriate population base, favorable demographics, and business friendly environment. The GCC insurance industry has witnessed moderate growth in recent years amid macroeconomic concerns, constrained fiscal and business spending as well as intensifying competition within the industry. The outbreak of COVID-19 since the start of 2020 has also weighed on the growth prospects of the broader industry. However, long-term prospects of the GCC insurance sector remains positive and digitization initiatives by insurers in the region