InsurTech Growth: How Fintech is Reshaping the UAE Insurance Market
Referring to latest data, leading executives in the insurance industry said the UAE fintech market, including its insurance segment, is experiencing rapid growth and projected to reach $3.56 billion in 2025, with a compound annual growth rate of 12.56% through 2030.
S&P Global Ratings has also estimated that the UAE's insurance sector will maintain positive growth prospects in 2025, with growth expected to range between 10% and 20% in 2025, following an estimated 20% expansion in 2024.
The agency also highlighted that other Gulf countries will experience similarly favourable growth conditions in their insurance markets, with expected growth rates ranging from 5% to 15%, depending on the circumstances of each country.
Driving Innovation
A.R. Srinivasan, Chief Executive Officer, Dubai National Insurance (DNI), said fintech is playing a transformative role in the UAE insurance industry by driving innovation, enhancing efficiency, and improving customer experiences.
'The UAE, known for its forward-thinking approach to technology and finance, has become a hub for fintech advancements, including within the insurance sector, often referred to as 'InsurTech',' Srinivasan told BTR.
Despite its progress, he said fintech in the UAE insurance industry also faces challenges such as legacy system integration, regulatory compliance, and consumer trust in digital-only offerings. 'These hurdles also present opportunities for innovation as in Insurtech firms can differentiate themselves by addressing underserved markets, such as low-income migrant workers, or by offering climate-resilient insurance products in line with the UAE's sustainability goals. All these are considered as part of our product development strategy,' he said.
Emir Mujkic, Director of Insurance Ratings at S&P Global Ratings, said that digitisation is a critical factor in improving customer experience and driving sector growth.
In a recent statement to the Wam, he mentioned that leading UAE insurance companies are heavily investing in automation and digital transformation to enhance operational efficiency and increase their market competitiveness.
He explained that digital transformation is expected to offer benefits such as improving customer experience by providing easier access to insurance products through digital platforms, delivering more tailored services through advanced data analytics, and streamlining the claims process.
'These efforts will contribute to higher customer satisfaction and increased participation in insurance services.'
Reshaping Insurance Landscape
Avinash Babur, Founder and CEO, InsuranceMarket.ae, said fintech plays an role in strengthening insurance business across the globe and the UAE has no exception.
'Absolutely! Fintech is a game-changer for the insurance industry, driving efficiency, transparency, and customer convenience. From AI-driven underwriting to instant policy issuance and claims automation, technology is making insurance smarter, faster, and more accessible,' Babur told BTR.
'At InsuranceMarket.ae, we've always believed in leveraging cutting-edge tech to enhance the customer journey — whether it's our market-leading digital platform, InstantAlfred for 24/7 assistance, or our seamless online purchasing experience. The future of insurance is digital, and fintech is at the heart of that evolution,' he said.
Babur said the UAE has always been at the forefront of digital transformation, and fintech is reshaping the insurance landscape in a big way. 'With AI and big data, insurers can assess risk more accurately, leading to personalised pricing and better coverage options. Automation reduces processing times for everything from policy issuance to claims settlements, enhancing customer satisfaction,' he said.
He said InsurTech solutions also improve fraud detection, ensuring a more secure and reliable ecosystem.
'At InsuranceMarket.ae, we've built a digital-first platform that gives customers more control and choice, enabling them to compare, customise, and purchase policies in just a few clicks. This is the kind of convenience and innovation that fintech brings to the UAE's insurance market.'
To a question about the company's plan to introduce an insurance product with the latest fintech features, he said: 'Innovation is in our DNA, and we're always exploring new ways to enhance the customer experience through fintech. Our goal is to make insurance simpler, faster, and more intuitive.'
'Whether it's AI-driven recommendations, blockchain for secure transactions, or seamless embedded insurance solutions, we are continuously integrating the latest technologies into our platform. We've already revolutionised the way customers buy insurance in the UAE, and we're committed to staying ahead of the curve with even more tech-enabled solutions in the near future. Stay tuned!'
More Tailored Products
Analysts and experts said fintech has become a transformative force in the insurance industry, reshaping traditional business models and enhancing customer experiences.
'At its core, fintech leverages technology to streamline insurance processes, optimise risk assessment, and improve operational efficiency. This transformation is pivotal as consumers increasingly demand speed, transparency, and personalisation in their financial services,' says an expert.
One of the most significant impacts of fintech on insurance is the adoption of advanced data analytics and Artificial Intelligence. Insurers can now analyse vast amounts of data from various sources, including social media, wearables, and IoT devices, to gain insights into customer behavior and risk profiles.
'This enables insurers to create more tailored products and optimise pricing strategies. For example, usage-based insurance models — where premiums are determined by real-time data on driving habits — are a direct result of fintech innovations.'
Moreover, fintech facilitates improved customer engagement through digital platforms. Insurers are developing user-friendly apps that allow clients to manage policies, file claims, and access support services instantaneously. This shift not only enhances customer satisfaction but also leads to decreased operational costs for insurers. The emergence of InsurTech startups, which combine innovative finance with insurance solutions, has disrupted the market further. These startups leverage cutting-edge technologies like blockchain for secure transactions, creating an environment of trust and efficiency that traditional players often struggle to match. This innovation fosters competition and encourages established insurers to adapt and integrate new technologies into their operations.
HOW FINTECH HELPS INSURANCE BUSINESS IN THE UAE
A.R. Srinivasan, Chief Executive Officer, Dubai National Insurance, shares an overview of how fintech is shaping the UAE insurance industry:
Digital Transformation and Customer Accessibility is making insurance more accessible to UAE residents through digital platforms. Online insurance marketplaces and mobile apps allow customers to compare policies, purchase coverage, and manage claims seamlessly. This shift aligns with the UAE's growing demand for convenient, tech-driven financial services, fuelled by a tech-savvy population and high mobile penetration.
Enhanced Efficiency Through Automation is streamlining traditional insurance processes such as underwriting, claims processing, and policy issuance. By leveraging technologies like Artificial Intelligence (AI) and machine learning, insurers can automate repetitive tasks, reducing operational costs and processing times.
Personalised Insurance Offerings: The use of big data and analytics, key components of Insurtech/Fintech, allows insurers in the UAE to offer tailored products based on individual customer needs. This personalisation enhances customer satisfaction and helps insurers remain competitive in a crowded market.
Improved Risk Assessment and Fraud Detection: AI and Blockchain are enhancing risk management in the UAE insurance industry. AI-powered algorithms can detect patterns indicative of fraudulent claims, while Blockchain ensures secure, transparent data sharing between insurers, customers, and regulators.
Embedded Insurance and Partnerships enables the integration of insurance into other digital platforms, known as embedded insurance. In the UAE, this trend is emerging as Insurtech/Fintech firms collaborate with e-commerce platforms, ride-hailing services, or banks to offer insurance at the point of sale.
Regulatory Support and Innovation Hubs: The UAE government and regulatory bodies, such as the Central Bank of the UAE (which oversees insurance since its merger with the UAE Insurance Authority in 2020), actively support Fintech innovation. Initiatives like the Dubai International Financial Centre's Fintech Hive provide Insurtech startups with mentorship, funding, and regulatory sandboxes to test new solutions. These efforts foster a conducive environment for fintech to thrive in the insurance space, aligning with national goals like the Dubai Cashless Strategy and Financial Infrastructure Transformation Programme.
— muzaffarrizvi@khaleejtimes.com
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