UAE insurance companies adopting IFRS 17 will be quite a game-changer

UAE insurance companies adopting IFRS 17 will be quite a game-changer

A fortified solvency structure also paves the way for more favourable engagements with reinsurance partners, who will be playing a pivotal role in this evolving narrative. Their involvement is not just ancillary, but central to the stability and growth of the UAE insurance market.

As insurance companies recalibrate their financial strategies in line with IFRS 17, reinsurers stand as the bedrock, providing the necessary capital, risk management expertise, and strategic support. Their role is instrumental in ensuring the market remains buoyant and resilient, especially in the face of regulatory shifts and economic fluctuations. The synergy between insurers and reinsurers will be the driving force behind a more transparent and dynamic insurance market in the UAE.

It’s evident that regulatory changes, especially the impending enforcement of IFRS 17, have been influential. This directive necessitates that insurance entities earmark additional capital, which could potentially trigger a surge in premiums in the foreseeable future.

The growth trajectory of the UAE’s insurance market paints an optimistic picture. Parallel to the regional economic upswing, we project a corresponding rise in Gross Written Premium (GWP). We also anticipate a surge in insurance penetration, gauged as a percentage of GDP. This too underscores the sector’s inherent potential and the escalating