United Arab Emirates

Even as the US-Iran agreement promises to reopen the Strait of Hormuz, marine insurers warn the crisis is far from over, with war-risk premiums for the region still running as much as 30 times above pre-conflict levels. Premiums that averaged roughly 0.1–0.25% of vessel value before the war surged to between 2.5% and 7.5% at the peak — translating into insurance bills of $3 million to $8 million for a single large tanker transit. Insurers say they need months of sustained stability, plus mine-clearance that could take up to six months, before restoring normal cover.

The UAE health and medical insurance market reached $10.11 billion in 2026 and is forecast to grow to $15.04 billion by 2031 at an 8.26% CAGR, supported by nationwide mandatory coverage and rising claims intensity. Since January 2025, employers across the UAE must fund health insurance for eligible private-sector workers and domestic staff under a basic package priced at AED 320, with coverage linked to visa issuance and renewal. Dubai accounts for 58.75% of the market, while online distribution platforms are the fastest-growing channel.

Even with the US-Iran agreement to reopen the Strait of Hormuz, marine war-risk insurance premiums are expected to remain sharply elevated and shipping costs are unlikely to fall quickly. Industry estimates put war-risk premiums at 3% to 8% of vessel value, up from roughly 0.25% before the conflict, translating into bills of $3 million to $8 million for a single large tanker transit. Insurers say they need months of sustained stability, and that mine-clearance uncertainty, military escort requirements, and thousands of ships still trapped in and around the waterway will keep cover expensive and traffic constrained.

The UAE insurance market is projected to grow to $25.1 billion by 2030, cementing its position as the third-largest in the Gulf region, according to investment-banking advisory firm Alpen Capital. The broader GCC insurance market is forecast to reach $61.8 billion by 2030 at a compound annual growth rate of 4.9%, with non-life remaining dominant and Saudi Arabia growing fastest at 5.9%. Sustained population growth, recovering economic activity, the expansion of mandatory insurance lines, and stronger regulatory oversight are identified as the key drivers of demand across the region.

The GCC insurance market is projected to grow to $61.8 billion by 2030 at a 4.9% CAGR, with the UAE — the region's largest market — expanding to $25.1 billion, according to Alpen Capital's GCC Insurance Industry Report. The growth is driven by population increases, economic recovery, expanding mandatory insurance lines, and stronger regulatory oversight. The expansion coincides with a rare alignment of softening global insurance prices and a UAE economy the IMF expects to grow about 5% in 2026.