The agency by the ratings Standard & Poor's Global Credit Agency predicts that the insurance sector in the UAE will maintain positive prospects until 2025, with potential growth from 10% to 20%, following the sector demonstrating a 20% growth in 2024. The agency noted that insurance markets in other countries of the Persian Gulf will also have favorable conditions for growth, with an expected range of 5% to 15%, depending on the situation in each country.
Amir Modzhik, head of insurance ratings at Standard & Poor's, stated to the Emirates News Agency (WAM): "Digitalization plays a key role in improving customer experience and the growth of the insurance sector." He emphasized that large insurance companies in the UAE are increasingly investing in automation and digitalization in order to improve operational efficiency and increase competitiveness in the market.
Modzhik explained that expected benefits from digital transformation in the insurance sphere include improved customer experience due to the availability of digital platforms for easier access to insurance products, the provision of more personalized services thanks to advanced data analysis, and also the acceleration of claim processing through smoother procedures, enhancing customer satisfaction and increasing participation rates in insurance services.
In regard to global premiums due to reinsurance, Modzhik pointed out that prices have decreased by 5-15% at the beginning of 2025 for contracts, not including significant losses, according to reports from reinsurers. He noted that this decline reflects a change in the reinsurance strategies towards increasing the volume of insurance premiums following waves of price increases in recent years.
In the Near East and North Africa (MENA), trends in pricing in reinsurance remain varied, with larger insurance companies having better negotiation leverage compared to smaller and medium-sized companies.
