Life insurance - United Arab Emirates

United Arab Emirates

The Life insurance market market in the United Arab Emirates is expected to reach a market size (gross written premium) of €3.55bn in 2024.
The average spending per capita in the Life insurance market market is projected to be €0.37k in 2024.
The market is expected to exhibit an annual growth rate (CAGR 2024-2029) of -1.04%, resulting in a market volume of €3.37bn by 2029.
In global comparison, the United States is forecasted to generate the highest gross written premium of €1,182.0bn in 2024.
The United Arab Emirates is experiencing a growing demand for life insurance products due to an increasing awareness of the importance of financial protection.

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Analyst Opinion

The Life insurance market in United Arab Emirates has been experiencing significant growth and development in recent years.

Customer preferences: Customers in the United Arab Emirates are increasingly seeking life insurance products that provide not only financial security for their loved ones in the event of unforeseen circumstances but also investment opportunities for wealth accumulation. There is a growing demand for customizable life insurance policies that cater to individual needs and preferences.

Trends in the market: One of the key trends in the UAE's life insurance market is the rise of digital insurance platforms and InsurTech solutions. Insurers are leveraging technology to enhance customer experience, streamline processes, and offer innovative products. Additionally, there is a noticeable shift towards more transparent and simplified insurance products, making it easier for customers to understand and choose the right coverage.

Local special circumstances: The unique demographic makeup of the United Arab Emirates, with a large expatriate population and high-income individuals, has a significant impact on the life insurance market. Expatriates often seek life insurance coverage to protect their families back home, while affluent locals look for wealth management solutions through life insurance policies. Moreover, the government's initiatives to promote financial planning and security further drive the demand for life insurance in the country.

Underlying macroeconomic factors: The stable economic growth, favorable regulatory environment, and increasing awareness about the importance of insurance are key macroeconomic factors contributing to the growth of the life insurance market in the United Arab Emirates. As the country diversifies its economy and focuses on sustainable development, there is a growing emphasis on long-term financial planning, boosting the demand for life insurance products. Additionally, the strategic location of the UAE as a global financial hub attracts international insurers to establish a presence in the market, offering a wide range of options for customers.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.