Alpen Capital, the financial advisory firm, expects the UAE to maintain its position as the largest insurance market in the GCC, and expects the insurance sector in the UAE market to grow at a CAGR of 4.2% to reach $ 15.6 billion (AED 57.3 billion). By 2024, driven by increasing population and economic growth.

General insurance

The company said in its report on the insurance industry in the UAE and the Gulf Cooperation Council for 2019, during a press conference in Dubai yesterday, it expects that the general insurance segment «non-life» in the UAE to account for 76.9% of the total written premiums, to reach 12 Billion dollars (44 billion dirhams) in 2024.

She explained that the growth of this segment in the UAE is due to several factors, most notably the extensive development of infrastructure, the implementation of the compulsory health insurance plan, as well as the growing awareness of the importance of risk coverage.

life insurance

In contrast, the company expects the life insurance category to grow in the domestic market at an annual rate of 4.9%, to reach $ 3.7 billion (more than 13.5 billion dirhams) by 2024, driven by increasing population and awareness.

She pointed out that the UAE ranks first in terms of the prevalence of insurance in the region, pointing out that the insurance sector in the UAE achieved a compound growth of 9.4% between 2013 and 2018 with 9.8% for general insurance and 8.1% for life insurance.

Key factors

Alpen Capital forecasts that the GCC insurance sector will achieve a compound annual growth rate of 4.3%, reaching $ 36.1 billion in 2024, up from $ 29.2 billion in 2019.

Stable economic growth, population growth and massive infrastructure development are among the key factors that will facilitate the growth of the sector.

Government efforts are also likely to tighten regulations, introduce mandatory insurance lines, and diversify the economy to raise total written premiums in the insurance sector, the company said. Total life insurance premiums are expected to rise at a compound annual growth rate of 4.9%. To $ 4.7 billion in 2024.

Growth rates

The company noted that growth rates vary according to the expected population increase for each country. On the other hand, the non-life insurance market is expected to grow at a compound annual rate of 4.3% driven primarily by mandatory insurance business lines, new regulations leading to improved pricing of documents, the expected recovery in economic activity, as well as the subsequent increase in investments in Infrastructure.

The non-life insurance category in the GCC will remain 86.9% of the total insurance market, reaching $ 31.4 billion in 2024.

Growth engines

Alpen Capital said growth was driven by economic growth as part of the region's recovery efforts after regional governments increased budget allocations and took a series of measures to improve the business environment and boost demand in key sectors.

Sectors such as tourism, aviation, retail, hospitality, real estate and construction, as well as significant infrastructure spending as part of preparations for Expo 2020 Dubai, will boost regional economies as GDP is likely to grow (at current prices) in the GCC. GCC cooperation at a CAGR of 3.3% over the coming period.

The Insurance Authority introduces companies to new legislation

The Insurance Authority has organized an awareness workshop for companies and insurance-related professions on new legislation and laws issued by the federal government agencies in the country, including with regard to combating money laundering and other related regulations.

This workshop is part of a series of workshops and seminars, organized by the Authority periodically, to raise awareness of companies and professions associated with insurance, modern laws and legislation issued in the State and the organization of insurance business.

During the workshop, the experts reviewed the new federal legislation, including anti-money laundering legislation, for which companies and insurance-related professions can view their terms, provisions and details by visiting the Authority's website.

The experts pointed out that the obligations of insurance companies and related professions on money-laundering regulations and other related regulations called for reference to the website of the Executive Office of the Committee on Goods and Substances under Import and Export Control.

Mergers

Alpen Capital, a financial advisory firm, expects mergers in the GCC to grow, with smaller companies forced to merge with large corporations to strengthen their capital base and expand their product offerings in a highly competitive sector. Foreigners will contribute to the development of the insurance industry in the «Cooperation» countries. Dubai - UAE Today

- 76.9%

Share of general insurance

«Change Life» in

State of total

Installments.

- 4.9%

Expected annual growth

In the insurance category on

Life in the market

By 2024.