It rose by 12.7% year-on-year

53.2 billion dirhams in written insurance premiums in the UAE during 2023

The report indicated an increase in the total claims paid for all types of insurance programs by 12.8% on an annual basis. Archive

The Central Bank of the Emirates announced that the insurance sector in the country continued its growth over the past year, which was reflected in the increase in total written insurance premiums, which rose by 12.7% on an annual basis to 53.2 billion dirhams at the end of 2023 compared to about 47.2 billion dirhams at the end of 2022.

The Central Bank said, in its quarterly review report for the fourth quarter of 2023, that “the main reason behind the increase in written premiums is due to an increase in health insurance premiums by 16.5% on an annual basis, and an increase in property and liability insurance premiums by 18.9%, while health insurance premiums decreased.” People and money creation processes, as a result of the decline in individual life insurance premiums.”

The report indicated that the total claims paid for all types of insurance programs increased by 12.8% on an annual basis, to 31.1 billion dirhams at the end of last year, as a result of the increase in claims paid in health insurance by 16.9%, and the increase in claims paid for property and liability insurance by 16.9%. 10.9%.

The total technical allocations for all types of insurance increased by 8.4% on an annual basis, reaching 74.4 billion dirhams at the end of the fourth quarter of last year, compared to about 68.8 billion dirhams at the end of the fourth quarter of 2022.

The total volume of assets invested in the insurance sector amounted to about 76 billion dirhams, equivalent to 60.4% of the total assets at the end of the fourth quarter of last year, compared to about 71.4 billion dirhams, equivalent to 59.4% of the total assets at the end of the fourth quarter of 2022.

The Central Bank’s report indicated that the retention rate of written insurance premiums for all types of insurance reached 52.9%, equivalent to 28.1 billion dirhams, at the end of last year, compared to 54.9%, equivalent to 25.9 billion dirhams, at the end of 2022.

The insurance sector in the UAE remained well capitalized in terms of early warning rates and risk assessment, and the ratio of self-funds to the minimum capital requirements increased to 335.7% in the fourth quarter of last year, compared to 309.3% at the end of 2022, and this is due to... Increase in own funds to meet minimum capital requirements.

The ratio of self-funds to capital requirements for financial solvency increased to 221% in the fourth quarter of last year compared to 208.5% in the fourth quarter of 2022. This is due to the increase in self-funds eligible to meet capital requirements for financial solvency.

In terms of profitability, gross net profit to net written premiums rose to 6.5% in the fourth quarter of last year, compared to 2.9% at the end of 2022, and the return on average assets rose to 0.3% from 0.1%.