UAE

The UAE's insurance sector kept growing in early 2026, with gross written premiums up about 15% year-on-year and the number of policies rising, while capital adequacy strengthened, according to the central bank's latest review.

The Central Bank of the UAE has agreed to work with the World Bank Group to strengthen financial inclusion and financial health, cooperating on financial literacy, digital fraud prevention and dispute resolution.

The Central Bank of the UAE imposed a Dh20 million penalty on a branch of a foreign bank for significant, repeated failures in its anti-money-laundering controls, and fined its compliance chief Dh300,000.

The UAE's new Federal Decree-Law No. 6 of 2025 has consolidated regulatory oversight of both banking and insurance under the Central Bank of the UAE, with a transition period running until September 16, 2026 for firms to fully align. The law dramatically expands the Central Bank's enforcement powers — raising the maximum administrative fine to AED 1 billion — and brings insurtech platforms and technology service providers within its regulatory perimeter for the first time.

Brent crude oil fell to around $72 per barrel on June 26 — its lowest level since late February — as shipping transits through the Strait of Hormuz accelerated following progress toward a US-Iran peace deal. Persian Gulf exports have recovered to roughly 75% of pre-war levels, with Saudi Arabia ramping up loading at Ras Tanura, easing the inflation pressures that had rippled across global insurance, mortgage, and financial markets.

Iran's newly created Persian Gulf Strait Authority (PGSA) is requiring all vessels transiting the Strait of Hormuz to carry Iranian-approved insurance — free for an initial 60 days but with fees explicitly reserved for the future. The move, reported by Lloyd's List and analyzed by Insurance Business on June 22, sidesteps a US-Iran memorandum guaranteeing toll-free passage and raises complex sanctions and underwriting questions, since the PGSA was designated by the US Treasury in May 2026.

A wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) has invested in Sapiens International Corporation, becoming a significant minority shareholder in the global insurance software provider. The investment, with undisclosed terms, signals Gulf sovereign wealth capital entering insurance technology at scale and follows Sapiens' 2025 acquisition by private equity firm Advent International.

UAE insurers, banks, and fintech firms face a September 16, 2026, deadline to align with the country's landmark consolidated Central Bank Law (Federal Decree-Law No. 6 of 2025), which came into force in September 2025. The overhaul consolidates banking and insurance regulation under the CBUAE, widens the regulatory perimeter to capture insurtech and digital platforms, and raises the maximum administrative fine fivefold to AED 1 billion.

Even as the US-Iran agreement promises to reopen the Strait of Hormuz, marine insurers warn the crisis is far from over, with war-risk premiums for the region still running as much as 30 times above pre-conflict levels. Premiums that averaged roughly 0.1–0.25% of vessel value before the war surged to between 2.5% and 7.5% at the peak — translating into insurance bills of $3 million to $8 million for a single large tanker transit. Insurers say they need months of sustained stability, plus mine-clearance that could take up to six months, before restoring normal cover.

The UAE health and medical insurance market reached $10.11 billion in 2026 and is forecast to grow to $15.04 billion by 2031 at an 8.26% CAGR, supported by nationwide mandatory coverage and rising claims intensity. Since January 2025, employers across the UAE must fund health insurance for eligible private-sector workers and domestic staff under a basic package priced at AED 320, with coverage linked to visa issuance and renewal. Dubai accounts for 58.75% of the market, while online distribution platforms are the fastest-growing channel.

Even with the US-Iran agreement to reopen the Strait of Hormuz, marine war-risk insurance premiums are expected to remain sharply elevated and shipping costs are unlikely to fall quickly. Industry estimates put war-risk premiums at 3% to 8% of vessel value, up from roughly 0.25% before the conflict, translating into bills of $3 million to $8 million for a single large tanker transit. Insurers say they need months of sustained stability, and that mine-clearance uncertainty, military escort requirements, and thousands of ships still trapped in and around the waterway will keep cover expensive and traffic constrained.

The UAE insurance market is projected to grow to $25.1 billion by 2030, cementing its position as the third-largest in the Gulf region, according to investment-banking advisory firm Alpen Capital. The broader GCC insurance market is forecast to reach $61.8 billion by 2030 at a compound annual growth rate of 4.9%, with non-life remaining dominant and Saudi Arabia growing fastest at 5.9%. Sustained population growth, recovering economic activity, the expansion of mandatory insurance lines, and stronger regulatory oversight are identified as the key drivers of demand across the region.

The GCC insurance market is projected to grow to $61.8 billion by 2030 at a 4.9% CAGR, with the UAE — the region's largest market — expanding to $25.1 billion, according to Alpen Capital's GCC Insurance Industry Report. The growth is driven by population increases, economic recovery, expanding mandatory insurance lines, and stronger regulatory oversight. The expansion coincides with a rare alignment of softening global insurance prices and a UAE economy the IMF expects to grow about 5% in 2026.

The UAE health and medical insurance market is valued at approximately $10.11 billion in 2026 and is projected to grow to $15.04 billion by 2031, at an 8.26% compound annual growth rate, according to market research firm Mordor Intelligence. The expansion is underpinned by a nationwide mandatory employer-funded health insurance requirement for private-sector workers and domestic staff, introduced in January 2025, and by gross medical cost trends projected to escalate 11.3% in 2026 driven by high-cost cancer and cardiovascular treatments.