Growth indicators of insurance sector in UAE reflect a dynamic and active market: CBUAE – Gulf Today

Growth indicators of insurance sector in UAE reflect a dynamic and active market: CBUAE – Gulf Today

The Central Bank of the UAE reports reflecting a strong, dynamic, and active market.

The insurance sector in the UAE witnessed growth and expansion across various key indicators during 2022, according to a report by the Central Bank of the UAE, reflecting a strong, dynamic, and active market driven by increasing demand and effective risk management.

This will help bolster the market's liquidity and make it more resistant to any future downturns, according to the apex bank's annual statistical report on the insurance sector.

The Central Bank pointed out that the insurance sector in the UAE achieved growth in most of the key performance indicators in 2022, with Gross written premium increasing by 6.6% year-on-year to reach Dhs47.2 billion.

The report explained that the number of direct premiums written grew by 11.2% year-on-year to 9.8 million in 2022, indicating the growth of the insured base and increasing market penetration rates. Total claims paid also increased by 4% to Dhs27.7 billion, which suggests a similar increase in the utilisation of insurance coverage and services, reflecting a dynamic and active market.

The retention ratio of written insurance premiums, according to the report, was 54.9%; technical provisions amounted to Dhs68.6 billion; and total invested assets