UAE's insurance sector projected to grow 20% in 2025: S&P

UAE's insurance sector will maintain positive growth prospects in 2025, with growth expected to range between 10 per cent and 20 per cent in 2025, following an estimated 20 per cent expansion in 2024, according to S&P Global Ratings.

The agency also highlighted that other Gulf countries will experience similarly favourable growth conditions in their insurance markets, with expected growth rates ranging from 5 per cent to 15 per cent, depending on the "circumstances of each country."

In a statement to the Emirates News Agency (WAM), Emir Mujkic, Director of Insurance Ratings at S&P Global Ratings, said that digitisation is a critical factor in improving customer experience and driving sector growth. He stated that leading UAE insurance companies are heavily investing in automation and digital transformation to enhance operational efficiency and increase their market competitiveness.

He explained that digital transformation is expected to offer benefits such as improving customer experience by providing easier access to insurance products through digital platforms, delivering more tailored services through advanced data analytics, and streamlining the claims process. These efforts will contribute to higher customer satisfaction and increased participation in insurance services.