UAE Insurance Premiums Jump 15% as Central Bank Reports Strong Sector Capital

The UAE's insurance sector continued to expand strongly in early 2026, according to the Central Bank of the UAE's latest Quarterly Economic Review. Gross written premiums rose 15.1% year on year in the first quarter, while the number of policies increased 9.5%. Technical provisions grew 7.9% and total equity rose 15.8% over the same period. The sector also remains well capitalised: the ratio of own funds to the minimum capital requirement climbed to 516.1% in the first quarter of 2026 from 393.2% a year earlier, driven by higher eligible own funds, though the own funds to solvency capital requirement ratio eased to 187.2% from 204.1%. The banking sector showed similar strength, with a capital adequacy ratio of 16.8% and a net non-performing loan ratio of 1.5%. The central bank forecasts UAE inflation at 2.3% in 2026, reflecting supply-side pressures from regional geopolitical developments affecting energy, shipping and food prices, easing to 1.9% in 2027. It cautioned that risks to the global outlook remain elevated, with Middle East developments a key area to monitor. The insurance sector now operates under a consolidated framework after Federal Decree-Law No. 6 of 2025 unified banking and insurance supervision, with a transition period running to September 2026.