UAE Insurance Claims Hit Dh11 Billion, With Health Coverage Driving Over Half The Total

(MENAFN- Khaleej Times)

Gross paid insurance claims of all types of insurance plans increased by 18.3 per cent year-on-year to Dh11 billion in the first quarter of 2025, with health insurance accounting for more than half of the total claims.

According to the Central Bank of the UAE's latest figures, gross paid claims comprised health insurance claims of Dh6 billion, property and liability insurance claims of Dh4.5 billion, and insurance of persons and fund accumulation claims of Dh0.5 billion.

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The gross written premiums of UAE insurers increased by 13.8 per cent year-over-year to Dh23.9 billion in the first quarter of 2025, primarily due to a rise in premiums.

The Central Bank data showed that health insurance premiums increased by 14.2 per cent, property and liability insurance premiums by 13.9 per cent, and insurance of persons and fund accumulation premiums by 11.1 per cent, primarily due to an increase in individual life insurance premiums.

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UAE insurers have increased premiums since the heavy rains caused a surge in claims in March-April 2024, resulting in significant losses to vehicles and properties due to the record rainfall. It is believed that around 100,000 vehicles were damaged by the rains, and thousands of properties were also affected.

Insurers in the UAE lost up to $2.5 billion (Dh9.175 billion) during the heavy rains in Dubai, Sharjah and other northern emirates, according to global ratings agency S&P.

“The UAE experienced several storms in early 2024, with the one on April 16 producing the most substantial rainfall since climate data recording began in 1949. Based on current estimates by industry participants, insured losses from the rainstorms could range from $1.5 billion to $2.5 billion (Dh5.5 billion to Dh9.175 billion), largely relating to property claims in Dubai,” said S&P analysts in a note in October.

In the UAE, there are 59 licensed insurance companies – 23 traditional, 10 takaful national companies, 25 branches of foreign insurance companies and one branch of a foreign reinsurance company operating in the UAE. The number of insurance-related professions increased to 504.

In terms of profitability, the net total profit-to-net written premiums ratio stood at 7.3 per cent in the first quarter of 2025. The return on average assets ratio was 0.8 per cent in the first quarter of 2025 compared to 0.6 per cent in the first quarter of the previous year.

As reported by Khaleej Time earlier, the UAE insurers' net profit increased by Dh190 million or 24 per cent to Dh987 million in the first quarter of 2025 compared to Dh797 million in the same period last year, due to increased premiums and the absence of heavy rains, which hit the country early last year.

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