The UAE’s insurance sector is entering one of its strongest growth phases in years, as declining global premiums combine with surging domestic demand to create a powerful expansion cycle across health, motor, property, and specialty lines.
Insurance pricing is softening globally just as the UAE economy accelerates, creating a rare alignment of lower costs and rising demand that is expected to drive robust growth across the industry in 2026. Strong economic expansion, population inflows, and rising infrastructure activity are fuelling insurance uptake across corporate and retail segments, positioning the sector for sustained double-digit expansion.
Omar Gemei, head of Global Placement for Marsh in India, the Middle East and Africa, said the continued softening reflects a highly competitive market with strong insurer appetite and new entrants delivering meaningful rate reductions across most lines. Organisations with strong risk controls are now able to secure broader coverage and improved pricing, he noted.
In the Middle East, property insurance has led the pricing decline, with rates dropping about 11 per cent on average as regional and international reinsurers expanded capacity and competition intensified. Casualty rates have declined about 5 per cent globally, while pricing in the UAE has remained largely stable, reflecting balanced supply and demand.
Financial and professional lines have also eased, with directors and officers liability rates in the UAE and Saudi Arabia falling between 15 per cent and 20 per cent amid increased capacity from regional and London markets. Cyber insurance premiums have declined between 5 per cent and 10 per cent in the Middle East as new entrants expand underwriting appetite.
This global softening comes at a time when the UAE’s domestic insurance market is poised for strong expansion, supported by robust macroeconomic fundamentals. The International Monetary Fund expects the UAE economy to grow about 5 per cent in 2026, driven by non-oil sector growth, rising investments and strong consumer activity, all of which are boosting insurance penetration.
Health and motor insurance remain the backbone of the UAE market and are expected to be the primary growth drivers. The health and medical insurance segment alone is projected to reach about $10.11 billion in 2026, expanding at a compound annual growth rate of 8.26 per cent and potentially reaching $15.04 billion by 2031. Mandatory health coverage, population growth and rising healthcare costs continue to support sustained demand for medical insurance across the country.
Motor insurance is also set for steady growth as vehicle ownership rises alongside economic expansion and population growth. Meanwhile, the property and casualty segment is benefiting from a surge in real estate development, infrastructure projects and industrial investment across the UAE, with insurers reporting stronger demand for construction, engineering and corporate risk coverage.
Swiss Re has identified the Middle East, including the UAE, as one of the fastest-growing insurance markets globally, supported by economic diversification, infrastructure spending and increasing risk awareness among corporates and individuals. The reinsurer expects strong non-oil growth and regulatory reforms across the Gulf to drive sustained premium expansion and improved profitability.
S&P Global Ratings has similarly projected continued growth for the UAE insurance sector, supported by compulsory health and motor coverage, improving investment income and stronger regulatory oversight. The agency expects consolidation among smaller players and disciplined underwriting to strengthen sector resilience and profitability over the medium term.
Digital transformation is rapidly reshaping the UAE insurance landscape as companies invest heavily in technology to enhance underwriting accuracy, improve customer experience and reduce costs. Artificial intelligence, advanced data analytics and insurtech partnerships are enabling insurers to streamline claims, develop customised products and improve operational efficiency.
Regulatory oversight is also tightening as the Central Bank of the UAE continues to implement reforms following Federal Decree-Law No. 48 of 2023, aimed at strengthening solvency, governance, and consumer protection standards. The evolving regulatory framework is expected to encourage consolidation, improve transparency and enhance long-term financial stability across the sector.
Industry executives remain optimistic about the outlook. Sukoon Insurance has indicated that sustained economic momentum and improving investment conditions will support strong performance across the sector through 2026, while increased reinsurance capacity and competitive pricing are expected to underpin growth.
“With premiums easing globally and demand rising sharply at home, the UAE insurance industry is entering a sweet spot of growth, improving profitability and stronger capacity,” brokers said.
“The convergence of economic expansion, regulatory strengthening, and technological innovation is positioning the sector for a sustained period of expansion, reinforcing its role as a key pillar of the country’s rapidly diversifying financial services sector,” they said.
