UAE Life And Annuity Insurance Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

UAE Life And Annuity Insurance Market Trends and Insights

Mandatory corporate pension reform (2025)

Federal Decree-Law No. 57 of 2023 makes monthly pension contributions compulsory for private-sector staff, splitting 26% of salary between employers and employees and creating a recurrent pool estimated at USD 3.3 billion each year. The rule lifts retirement savings from a one-off end-of-service gratuity to disciplined, investment-grade funding that insurers can channel into annuity and unit-linked products. Employers may opt for regulated investment funds instead of lump-sum accruals, giving life companies a pipeline of stable assets under management. Voluntary top-ups of up to 25% of salary further widen the premium base, especially for mid-income Emiratis and expatriates. International agencies view the framework as a regional template for modern social protection^{[1]General Pension & Social Security Authority, “Corporate Pension Framework Overview,” gpssa.gov.ae}. 

Rising expatriate workforce & remittance-linked savings

Roughly 65% of foreign residents now plan to settle permanently, a marked shift from the transient mindset of earlier years. Among them, 48% already save regularly for retirement, even though only 32% qualify for a state pension in their home country. Cultural priorities such as children’s overseas education push demand for protection-cum-investment products that blend tuition funding with life cover. Remittance-linked plans that credit overseas dependents meet this need while locking in long-term premium flows. The projected USD 980 billion generational wealth transfer by 2028 adds another layer of opportunity for estate-planning life contracts. 

Rapid digital-first distribution

Smartphone penetration above 95% enables instant onboarding, with insurers issuing fully underwritten term policies in under 10 minutes via UAE PASS log-ins. Aggregator sites and super-apps post a 15.62% CAGR in new business, outpacing all other channels. Open-Finance rules effective April 2024 force banks and insurers to share product APIs, paving the way for embedded cover inside fintech wallets^{[2]Central Bank of the UAE, “Annual Insurance Statistics 2024,” cbuae.gov.ae} . Partnerships such as Policybazaar.ae with SALAMA and Sukoon’s collector-app illustrate how niche segments—from non-GCC car owners to high-net-worth art collectors—are captured at low acquisition cost. Data trails from these platforms allow dynamic pricing and personalised riders that improve persistency. 

Favourable zero-tax regime

Absence of income, capital gains, and inheritance taxes means investment gains inside unit-linked wrappers compound untaxed, enhancing long-run returns relative to competing offshore centres. The same tax neutrality lets single-premium whole-of-life plans serve as estate-liquidity tools for expatriates holding global assets. Dubai’s financial hub status adds complementary advantages: DIFC courts enforce common-law structures, and banks such as Emirates NBD report record USD 7.4 billion profits that bolster bancassurance capacity^{[3]Emirates NBD, “2024 Full-Year Results,” emiratesnbd.com}. Together, these factors position the UAE as the Gulf’s pre-eminent wealth-accumulation domicile, drawing both regional and international premium flows. Government rhetoric continues to affirm the no-tax stance, reinforcing consumer confidence. 

Low retail financial literacy

An estimated 38% of adults are financially illiterate and 25% save nothing each month, stalling uptake of products with variable returns. Only 12% of expatriates seek professional advice; instead, 35% rely on friends or family, leading to under-insurance and mis-sold policies. Complex fee structures in unit-linked plans exacerbate mistrust when market dips erode account values. While schools now include budgeting modules, the impact on new sales will take years. Insurers must invest in plain-language apps, animated explainers and advisor training to bridge the comprehension gap. 

High policy lapse ratio among transient expatriates

Roughly 81% of expats still expect to retire abroad, prompting early surrenders when job contracts end. Lapses force insurers to amortise acquisition costs over shorter horizons, pressuring margins. Cash-value withdrawals also undermine long-term investment performance for remaining policyholders. Product portability and reduced surrender charges can ease attrition but require capital buffers. Enhanced employer portability through the 2025 pension law should gradually curb churn. 

Segment Analysis

By Insurance Type: Unit-Linked Momentum within a Guaranteed-Benefit Core

Whole Life retained a 36.40% slice of the UAE life and annuity insurance market revenue in 2024, favored for estate planning and straightforward guarantees. Unit-linked contracts, though smaller, are earmarked for 10.54% CAGR growth as affluent investors seek transparent fee structures and equity-style upside. The UAE life and annuity insurance market size for Unit-Linked solutions is forecast to widen markedly alongside capital-market sophistication and zero-tax investment compounding.

Investors increasingly blend protection with accumulation, prompting insurers to add global multi-asset funds and goal-based dashboards. Term Life fills pure-risk needs for cost-sensitive households, while Endowment plans answer education-funding gaps common among Indian and Filipino families. Competitive differentiation centers on digital valuation tools, multi-currency switches, and ESG fund links that resonate with younger professionals. 

Note: Segment shares of all individual segments available upon report purchase

By Distribution Channel: Digital Gains, Bancassurance Persists

Bancassurance controlled 43.56% of premiums in 2024 through embedded cross-selling and payroll integration. Yet mobile apps and web aggregators will drive a 15.62% CAGR, lifting the direct slice of the UAE life and annuity insurance market share by 2030. Open-finance rules compel banks and insurers to share data, accelerating omnichannel experiences that combine biometric sign-in, instant underwriting, and robo-advice. 

Large banks deepen wallet share with wealth portals offering insurance, funds, and structured notes in one view, while fintechs target niche segments with subscription-style micro-covers. Brokers pivot to high-touch advisory for complex expatriate portfolios, and tied agents upgrade to hybrid video-consult models. 

By Premium Payment: Wealth Concentration Spurs Single-Premium Uptake

Regular Premium contracts still represent 70.21% of the UAE life and annuity insurance market size in 2024, mirroring salaried income streams and employer schemes. Single-Premium business, however, should notch 9.83% CAGR as bonuses, business exits, and property gains funnel lump sums into tax-efficient wrappers. Pension reform permits voluntary top-ups to 25% of salary, enriching periodic contribution flows without cannibalising one-off placements. 

Affluent buyers favor single-pay whole-of-life cover for estate liquidity, taking advantage of the absence of inheritance tax. Mass retail relies on monthly deductions aligned to end-of-service gratuity funding, underscoring the duality of payment preferences. 

Note: Segment shares of all individual segments available upon report purchase

By Customer Segment: Democratisation at the Base

HNW & Mass-Affluent clients commanded 42.10% of 2024 premium income, yet mass-market retail will expand 9.51% CAGR thanks to policy denominations as low as USD 27 per month on mobile apps. Gamified wellness riders and cashback incentives cater to digitally native users and mitigate persistency risk. 

Group schemes for SMEs scale as mandatory pensions institutionalise employer funding, whereas micro-pension platforms ride telecom APIs to enrol lower-income expatriates in under two minutes. The UAE life and annuity insurance market thus widens from the top and bottom simultaneously. 

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Dubai’s concentration gives the UAE life and annuity insurance market a cosmopolitan pulse. Financial-services GDP, rising visitor numbers, and record USD 7.4 billion pre-tax profit at Emirates NBD in 2024 support investment-led policies and cross-selling through digital wealth platforms. DIFC passports enable carriers to tap cross-GCC demand from a single hub. 

Abu Dhabi offers counter-cyclical ballast; government payrolls and sovereign wealth investments steady premium flows even when private-sector churn peaks. Voluntary end-of-service benefit funds approved by regulators unlock investment-linked policies for local and expatriate staff alike, diversifying away from lump-sum gratuities. 

The Northern Emirates contribute an emerging volume. RAK Bank’s all-digital Takaful suite and Sharjah’s SME corridors enlarge the retail base. Tourism projects in Fujairah and Ajman import service workers who demand affordable protection, while federal pension rules guarantee consistent product frameworks nationwide.