Insurers in the United Arab Emirates—and their international reinsurance partners—are waking up to the natural catastrophe exposures in the region after severe rains at the beginning of last year impacted full-year earnings, according to a new report from AM Best.
In its Best’s Market Segment Report, “Operating Performance of UAE Insurers Remains Resilient Despite Unprecedented Rains,” AM Best notes in the face of changes in the nature and frequency of weather-related events in the region, insurers will likely need to develop expertise in modelling other potential loss exposures.
Notwithstanding the insured rain losses, the report points to early evidence—based on year-end 2024 results—suggesting that there has been a positive reversal in the underwriting performance of listed insurers, with insurance service results having shown considerable improvement. The results of the top five insurers account for over 85% of the market’s total earnings, further exacerbating the divide between the largest and smallest players.
Overall, insurance service results in 2024 showed a 14% increase compared with the previous year, aligning with AM Best’s general expectations given the corrective measures taken by the industry in terms of risk management and improvement in technical pricing.
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