73.3% share of written premiums by national insurance companies
The share of national insurance companies in the total written premiums in the UAE increased from 66% in 2019 to 73.3% by the end of 2023, according to data from the Central Bank of the UAE.
According to the Central Bank’s data, national companies recorded written premiums amounting to AED 39.1 billion out of the total written premiums in the country, which amounted to AED 53.4 billion, and the written premiums in national insurance companies were distributed by AED 35.8 billion for property and liability insurance and AED 3.3 billion for people insurance and fund formation.
In the property and liability insurance sector, the share of national insurance companies reached 81.7% of the total written premiums, compared to 34.9% by the end of last year.
The total written premiums in national Takaful insurance companies amounted to about AED 4.9 billion, compared to AED 4.2 billion in the previous year, a growth of 16.4% at the end of last year.
Distribution of premiums: The written premiums in these companies were AED 3.5 billion for property and liability insurance and AED 1.4 billion for personal insurance and fund formation.
The share of national Takaful insurance companies amounted to about 12.4% of the total written premiums in national insurance companies, while their share in the level of insurance of persons and fund formation reached 40.6%, and about 9.8% at the level of property and liability insurance.
At the level of national conventional insurance companies, the total written premiums reached AED 34.3 billion at the end of last year, compared to AED 29.6 billion at the end of the previous year, a growth of 16%.
The written premiums in these companies were AED 32.3 billion for property and liability insurance and AED 1.9 billion for personal insurance and fund formation.
The share of national conventional insurance companies amounted to 87.6% of the total written premiums in national insurance companies, while the share of these companies in the property and liability insurance sector amounted to about 90.2%, and approximately 59.4% at the level of personal insurance and fund formation.
The total written premiums in the national conventional and Takaful insurance companies amounted to AED 39.1 billion in insurance companies, distributed by AED 35.8 billion for property and liability insurance and about AED 3.328 billion for personal insurance and fund formation.
Industry growth : Professor Jihad Feitrouni, CEO of UIS, said: “The Takaful insurance sector in the UAE is showing remarkable growth, as national Takaful insurance companies recorded an increase in written premiums by 16.4% by the end of last year, reaching AED 4.9 billion, compared to AED 4.2 billion in the previous year.
He explained that the high percentage of Takaful insurance in written premiums reflects the growing demand for Takaful insurance products, especially in a society that seeks Shariah-compliant financial products.
He pointed out that the market share of national Takaful insurance companies constitutes 12.4% of the total written premiums in national companies, which is an indication that Takaful insurance is still a relatively limited part, compared to conventional insurance, but it continues to grow, while its share at the level of insurance of persons and fund formation reached 40.6%, and about 9.8% at the level of property and liability insurance.
Takaful Insurance
He said that the bulk of the written premiums in Takaful insurance companies go to property and liability insurance (AED 3.5 billion), while AED 1.4 billion goes to insure people and fund formation, and this reflects the dependence of companies and individuals on Takaful more in insuring their property and business.
He noted that conventional insurance still retains the largest market share, accounting for 87.6% of total written premiums. However, the Takaful sector is showing strong growth, especially in personal insurance and fund formation, where the Takaful share reached 40.6%, which is an indication that some customers are turning to Takaful to meet their long-term financial needs.
“As demand for Shari’a-compliant financial solutions continues, the Takaful sector is expected to continue to grow, especially with a focus on innovation and expanding the range of products to increase awareness and trust,” he said.
He added: “Despite the current dominance of conventional insurance, Takaful companies have an opportunity to expand in the market, especially if the level of services provided is improved and the focus is on better meeting the needs of individuals and companies.”
