S&P Global Ratings forecasts the UAE insurance sector to expand between 10% and 20% in 2025, following an estimated 20% growth in 2024. Other Gulf Cooperation Council (GCC) countries are projected to see insurance market growth rates ranging from 5% to 15%, depending on individual circumstances.
Emir Mujkic, Director of Insurance Ratings at S&P Global Ratings, emphasised the role of digitisation in enhancing customer experience and driving sector growth. He noted that leading UAE insurance companies invest heavily in automation and digital transformation to boost operational efficiency and competitiveness.
Mujkic explained that digital transformation is expected to improve customer experience by providing easier access to insurance products through digital platforms, offering more tailored services via advanced data analytics, and streamlining the claims process. These efforts aim to increase customer satisfaction and participation in insurance services.
S&P’s report also highlighted that economic expansion, population growth, and mandatory insurance schemes are key drivers for increasing insurance demand in most GCC countries. However, the report cautioned that increasing competition and volatile equity markets could impact profitability, with size and profitability gaps between large and small companies likely to widen.
The GCC health insurance market, in particular, is expected to grow from $18.4 billion in 2024 to $29.2 billion by 2033, exhibiting a compound annual growth rate of 5.3% during 2025-2033. This growth is attributed to strong government support, healthcare infrastructure development, and rising migration in the region.
Despite global economic uncertainties, the UAE’s insurance sector remains resilient, driven by digital innovation and favourable economic conditions. The sector’s robust growth trajectory underscores its critical role in the nation’s economic diversification and development strategies.
