Gross paid insurance claims across various insurance plans in the UAE rose by 18.3 percent year-on-year to Dh11 billion in the first quarter of 2025. Health insurance alone accounted for over half of these claims, totaling Dh6 billion.

According to the latest figures from the Central Bank of the UAE, the breakdown of gross paid claims includes Dh4.5 billion for property and liability insurance claims, and Dh0.5 billion for insurance of persons and fund accumulation claims. This significant increase reflects the ongoing challenges faced by the insurance sector.

The gross written premiums for UAE insurers also saw an uptick, growing by 13.8 percent year-over-year to reach Dh23.9 billion in the first quarter of 2025. This increase is primarily attributed to rising premiums across various insurance categories.

Central Bank data indicates that health insurance premiums rose by 14.2 percent, while property and liability insurance premiums increased by 13.9 percent. Insurance of persons and fund accumulation premiums saw an 11.1 percent rise, largely driven by an increase in individual life insurance premiums.

Insurers in the UAE have raised premiums following heavy rains that led to a surge in claims during March and April 2024, resulting in substantial losses for vehicles and properties. Approximately 100 000 vehicles were reportedly damaged, alongside significant property losses.

According to global ratings agency S&P, insurers in the UAE faced losses up to $2.5 billion (Dh9.175 billion) due to severe rainfall in Dubai, Sharjah, and other northern emirates. “The UAE experienced several storms in early 2024, with the one on April 16 producing the most substantial rainfall since climate data recording began in 1949,” S&P analysts noted.

In the UAE, there are currently 59 licensed insurance companies, which include 23 traditional firms, 10 takaful national companies, 25 branches of foreign insurance firms, and one branch of a foreign reinsurance company. The number of insurance-related professions has also risen to 504.

Regarding profitability, the net total profit-to-net written premiums ratio was recorded at 7.3 percent in the first quarter of 2025, with a return on average assets ratio of 0.8 percent, compared to 0.6 percent in the same quarter of the previous year. The net profit of UAE insurers increased by Dh190 million or 24 percent to Dh987 million in the first quarter of 2025, up from Dh797 million in the same period last year, attributed to increased premiums and the absence of heavy rains that impacted the region early in the previous year.