What happened
On 17 August 2026 the Central Bank of the UAE (CBUAE) released its Financial Stability Report 2025 — the annual health-check of the Emirates’ financial system. A standout finding: the insurance sector had a robust year. Total sector assets reached AED 164.9 billion (+6.1% from AED 155.5bn in 2024), gross written premiums grew 14.9% to AED 74.8bn, and combined net profit surged 54% — from AED 2.6bn to AED 4bn. On 24 August 2026 Gulf News detailed the operational metrics: 17.3 million active policies, 58 licensed insurance companies, 515 insurance-related professions and insurance density of roughly AED 6,500 in premiums per capita.
The numbers at a glance
Snapshot of key indicators for the UAE insurance sector in 2025 (per CBUAE Financial Stability Report 2025):
- Total assets — AED 164.9bn (+6.1% from AED 155.5bn in 2024).
- Gross written premiums (GWP) — AED 74.8bn (+14.9% from AED 65.1bn).
- Combined net profit — AED 4bn (+54% from AED 2.6bn).
- Claims paid — AED 46.2bn (+11%).
- Invested assets — AED 96.4bn (58.4% of total assets).
- Technical provisions — AED 96.3bn (+4.4%).
- Active policies — 17.3 million; health insurance +26.1% year on year.
- Insurance density — approximately AED 6,500 in premiums per capita.
- Sector infrastructure — 58 licensed insurance companies and 515 insurance-related professions (agents, brokers, loss adjusters).
The fastest-growing segment: health insurance
The stand-out growth engine was the health-insurance book, up 26.1% year on year. CBUAE ties the jump directly to the full rollout of mandatory basic health cover across all seven emirates. Abu Dhabi (Law 23/2005) and Dubai (Law 11/2013) had required employer-paid health cover for years; in 2025 the federal mandatory-cover scheme completed its phased extension to the remaining emirates. The practical effect: millions of employees in Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah newly received policies during the year, significantly expanding the insurer client base and prompting product-line and pricing updates. It also nudged up the cost of hiring: the employer bears the cost of the mandatory-cover minimum, and deducting it from wages for the basic package is not allowed. How to factor that in when you’re building your headcount — see our take on hiring a multilingual team in the UAE.
Resilience: 455% capital cushion and higher retention
CBUAE describes the sector as «resilient and adequately capitalised». The headline solvency metric: available capital is 455% of the required minimum — insurers hold, on average, more than four times the regulatory floor. The premium retention ratio (the share of risk insurers keep on balance sheet rather than ceding to reinsurers) rose to 56% from 54.9% a year earlier, signalling stronger balance sheets and greater confidence in own underwriting. Technical provisions (reserves against future claims) grew 4.4% to AED 96.3bn; the investment portfolio is 58.4% weighted toward liquid, conservative assets.
What it means for businesses and employers
Three practical takeaways for owners and HR functions in the UAE:
- Hiring cost rises with mandatory health cover. For new hires in emirates where mandatory health insurance had not previously been fully enforced, employers need to budget an annual policy for each employee — from a baseline of ~AED 800–1,200 a year for basic categories to several thousand dirhams for full packages including family cover.
- Insurance premiums are deductible against 9% corporate tax. Employer-paid mandatory health insurance, life cover in a benefits package, property, liability and professional-indemnity policies are all ordinary and necessary business expenses that reduce taxable income. Conditions: proper documentation (policy, insurer invoice, payment) and arm’s-length pricing. See our detailed guide to the 9% UAE corporate tax on profits above AED 375,000.
- The broker and advisory market is deeper than ever. With 58 licensed insurers plus 515 insurance-related professions (agents, brokers, loss adjusters), UAE businesses can now shop competitive quotes across not just health, but D&O, cyber, cargo and professional indemnity — segments growing in step with the country’s more complex economy.
Primary source
Data are drawn from the Central Bank of the UAE (CBUAE) Financial Stability Report 2025, published on centralbank.ae on 17 August 2026, with corroborating coverage from Gulf News on 24 August 2026. Commentary and practical takeaways are by the garant.consulting editorial team; they are informational and do not substitute for personalised insurance or tax advice.
