Insurance

As the first emirate in the UAE to roll out mandatory health coverage, Abu Dhabi’s insurance sector has benefitted from over a decade of strong growth in both the life and general lines, with the UAE home to the region’s largest and most mature insurance market. Still, 2015 was a difficult year for the industry, as underwriters struggled with prevailing low global oil prices, increasing market competition, and sweeping regulatory reforms requiring many to realign internal process and restructure operations to meet rising national standards. Although the sector returned to profitability in 2016, strong competition continues to weigh on loss and retention ratios. Insurers are set to remain profitable in 2017, as mandatory health schemes continue to expand, while technical capacity and underwriting performance should continue to improve under the recent reforms’ rolling deadlines.