The UAE insurance industry’s net profit declined by approximately 25% YoY in 2022 as a result of lower rates and higher commissions, according to a study by Badri Management Consultancy.
The net profit of listed insurers in the UAE decreased by around AED 462M, or 23%, to AED 1.52B in 2022 compared to AED 1.99B in the prior year. Despite the decline in net profits, the local listed insurers’ gross written premiums increased by 11% to AED 29B last year.
The top three insurers contributed to AED 2.8B of the total increase. In addition, the UAE introduced a mandatory job loss insurance scheme for residents, which could aid local companies.
The year 2023 is predicted to be a year where the UAE Insurance Industry will have to focus on pricing, risk selection, and overall risk management due to the significant impact on profitability.
