UAE Life and Annuity Insurance Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The UAE Life and Annuity Insurance Market is segmented by Insurance Type (Individual Insurance, Annuity Insurance, Endowment Insurance, Whole Life Insurance, and Other Insurance Types). The report offers market size and forecasts for the UAE Life and Annuity Insurance Market in value (USD Million) for all the above segments.

Market Snapshot

UAE Life & Annuity Insurance Market - Market Summary
Study Period: 2018-2027
Base Year: 2021
CAGR: >4.9 %

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Market Overview

The UAE life and annuity insurance market is one of the biggest contributors to GCC and is expected to witness a CAGR of over 4.9% during the forecast period, 2022-2027.

The life insurance industry is expected to grow, especially since COVID-19 has raised consumer awareness of financial and health concerns. As a result, demand for life insurance and related products has risen. Despite the rise in demand, COVID-19 had a major impact on the intermediate side of the industry's distribution operations, which depended on face-to-face interaction, an impractical approach during the pandemic. As a result, the pandemic has re-emphasized the importance of being able to engage consumers directly through digital platforms. On a macroeconomic level, the UAE is forecasting typical growth rates, which would support demand growth in the retail and group insurance segments.

The Orient insurance company's net profit value in the United Arab Emirates (UAE) insurance market was predicted to be over USD 100 million in 2021. Five insurance companies had a profit of more than USD 27 million.

The gross written premium (GWP) value of the UAE insurance market was around USD 6.6 billion in 2020, an increase from 2019. Since 2016, the GWP in the UAE insurance market has been growing steadily.

In 2021, the life insurance sector held 13% of the UAE insurance market's share, whereas the non-life insurance sector held 87% of the market share.

Scope of the Report

The insurance market is simply defined as the buying and selling of insurance. Consumers or groups purchase risk management insurance from insurers that cover specific risks like health, life, auto, etc. The UAE life and annuity insurance market is segmented by Insurance Type (Individual Insurance, Annuity Insurance, Endowment Insurance, Whole Life Insurance, and Other Insurance Types). The report offers market size and forecasts for the UAE life and annuity insurance market in value (USD Million) for all the above segments.

By Insurance Type
Individual Insurance
Annuity Insurance
Endowment Insurance
Whole Life Insurance
Other Insurance Types

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Key Market Trends

COVID-19 Impact Driving the Market to New Flexible Business Models

  • Life insurance and annuity industries are impacted by the COVID-19 outbreak and the resulting market instability. Given the unusual level of uncertainty, we estimate that insurers will confront both short- and long-term challenges in maintaining business continuity and profitability.
  • If individuals are unable or unwilling to pay premiums to keep their policies active, life insurers may see an increase in policy lapses in certain parts of their business. This pattern may continue until the economy begins to improve. Companies that can identify lapsed policyholders who are most likely to repurchase insurance may have a competitive edge in regaining business.
  • In the long run, the shift to a virtual workforce may provide an opportunity for businesses to speed up their future-of-work projects. Flexible workforce models and remote capabilities are gaining real-world experience for businesses.
  • Despite the impact of the pandemic, the life insurance market generated a market value of USD 3.04 billion and 3.2 billion in 2020 and 2021, respectively.
  • In 2020, the gross written premium (GWP) value of the UAE insurance market was around USD 6.6 billion, an increase from the GWP value of USD 6.4 billion in 2019.
  • While the reinsurance implications of the current economy will become evident in the coming quarters, life insurance and annuity companies should assess reinsurance strategies and decide if changes in conditions influence risk tolerance based on past events, such as the credit crisis.
UAE Life & Annuity Insurance Market - Driving Factor Trend

Government Regulations and Economic Diversification Initiatives

  • The UAE Vision 2021 was aimed at diversifying the country’s economy in non-oil sectors, away from its oil-focused activities.
  • The government is taking numerous initiatives to reduce the reliance on oil-based sectors. Public-private partnerships are being encouraged, and 100% foreign ownership is being allowed in 13 sectors.
  • The eligible sectors are expected to offer new economic opportunities for international investors looking to explore the UAE market, particularly for projects involving e-commerce, research laboratories, advancement in biotechnology, logistics, and supply chain, production of solar panels, hybrid powerplants, and green technology.
  • As the diversification efforts are thriving strongly, the immigrant population in the country, who migrate for work purposes, will gradually increase with bigger projects being undertaken. There is a huge opportunity for the insurance sector since the United Arab Emirates mandates employers to provide all employees with insurance.
  • An increase in employment levels in all these sectors may open up opportunities for insurance providers.
  • The government is also making efforts to ease residency policies in the country, which will attract the high-net-worth and immigrant population to stay back for longer durations, helping the economy. Regulations are focused on attracting students and specialists. A 10-year residence visa was introduced for highly skilled workers and investors who can increase opportunities for the insurance sector, in the belief that a longer stay duration may motivate ex-pats to invest in insurance.
UAE Life & Annuity Insurance Market - Driving Factor Trend

Competitive Landscape

The UAE Life and Annuity Insurance Market is highly consolidated, with major players like Orient, ADNIC, and OIC taking up 64.8% share in the market.

Recent Developments

  • In March 2021, Dubai Ruler and Prime Minister Sheikh Mohammed bin Rashid Al-Maktoum announced that the UAE's Insurance Authority merged with the country's Central Bank. The Central Bank will work to improve insurance companies' performance and efficiency, hold them to industry standards and ethics, and improve their ability to provide better services to customers while encouraging healthy market competition.
  • Dubai National Insurance & Reinsurance (DNIR) collaborated with Magnati, a subsidiary of First Abu Dhabi Bank (FAB), to offer consumers a new convenient payment option. The service is provided in partnership with PayIt, FAB's first fully-featured digital wallet in the UAE. Through Magnati's next-generation technology, the alliance will cover payment acceptance requirements for both in-store and online channels, providing DNIR consumers with a convenient and secure payment experience. Magnati's payment-as-a-platform service automates regular insurance premium collection. Its full range of payment contact points through a single API and its insure-now-pay-later option will all be available to DNIR customers.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS AND INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Value Chain / Supply Chain Analysis

    4. 4.4 Industry Policies and Regulations

    5. 4.5 Technological Developments in the Sector

    6. 4.6 Industry Attractiveness - Porter's Five Forces Analysis

    7. 4.7 Impact of COVID - 19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Insurance Type

      1. 5.1.1 Individual Insurance

      2. 5.1.2 Annuity Insurance

      3. 5.1.3 Endowment Insurance

      4. 5.1.4 Whole Life Insurance

      5. 5.1.5 Other Insurance Types

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Orient Insurance Company

      2. 6.2.2 Abu Dhabi National Insurance Company

      3. 6.2.3 Oman Insurance Company

      4. 6.2.4 Al Ain Ahlia Insurance

      5. 6.2.5 SALAMA

      6. 6.2.6 Emirates Insurance Company

      7. 6.2.7 Dubai Insurance Company

      8. 6.2.8 Union Insurance Company

      9. 6.2.9 Dubai National Insurance & Reinsurance PSC

      10. 6.2.10 AXA Green Crescent Insurance

    3. *List Not Exhaustive
  7. 7. FUTURE OF THE UAE LIFE AND ANNUITY INSURANCE MARKET

**Subject to Availability

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Frequently Asked Questions

The UAE Life and Annuity Insurance Market market is studied from 2018 - 2027.

The UAE Life and Annuity Insurance Market is growing at a CAGR of >4.9% over the next 5 years.

Orient Insurance, Abu Dhabi National Insurance Company, Oman Insurance Company, Al Ain Ahlia Insurance Company, SALAMA, Emirates Insurance Company are the major companies operating in UAE Life and Annuity Insurance Market.

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