Fitch Ratings predicts that the UAE insurance industry will undergo more consolidation in 2025. This is particularly likely if the seven listed insurers currently under regulatory review for failing to meet solvency capital requirements do not recover within the set deadline.
The trend of mergers and acquisitions in the UAE insurance sector has been on the rise since 2022, driven by stricter regulations. After the insurance authority was integrated into the central bank in 2021, the bank began overseeing the entire financial services sector. This shift has resulted in more careful supervision and stronger market discipline.
Fitch expects this trend to continue. In February 2025, new regulations will come into effect that will change the way insurance brokers are licensed and supervised.
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