The UAE insurance sector is expected to experience further consolidation in 2025, according to a recent report by Fitch Ratings. The report highlights that mergers and acquisitions (M&A) activity could intensify, particularly if the seven listed insurers currently under regulatory scrutiny fail to meet the solvency capital requirements within the designated timeframe.
Since the central bank took over the supervision of the insurance sector in 2021, following the absorption of the Insurance Authority, the UAE has seen increased regulatory oversight. This shift has resulted in more rigorous supervision and greater market discipline, which Fitch believes will continue to shape the industry in the years ahead.
Fitch anticipates that the ongoing regulatory enhancements, including new licensing and operational supervision rules for insurance brokers set to take effect in February 2025, will further contribute to market consolidation. These developments are expected to create a more stable and efficient insurance environment, positioning the industry for continued growth.
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