Insurance

Intense competition, low penetration rates and a strong bias towards non-life products characterises Dubai’s insurance sector, with ratings agencies agreeing that there is robust medium-term growth potential for the emirate’s underwriters. S&P Global ratings predicts 10% per annum growth in gross written premiums for the UAE insurance sector in 2017 and 2018, compared to anticipated GDP growth over the same period of 3-3.5%. AM Best, a US-based ratings agency, noted an improvement in earnings coupled with solid premium growth when it compared the performance of listed companies in 2016 to the previous year. Among the key drivers of premium growth have been new federal regulations on motor insurance, as well as the introduction of compulsory health insurance for all residents of the emirate.