Emirati insurance market: 2023 results in accordance with IFRS 17 accounting standards

According to Badri Management Consultancy, an actuarial consulting firm, listed insurers and foreign subsidiaries operating in the United Arab Emirates closed the 2023 financial year on a positive note. Turnover rose to 42.4 billion AED (11.5 billion USD), up 19% on the previous year.

However, Badri Management Consultancy points out that the inclusion of expected credit losses (ECL) in the calculations is likely to lead to an increase in credit risk.

Furthermore, the adoption of IFRS 17 in 2023 has profoundly transformed the insurance landscape. While gross written premiums (GWP) used to be the key indicator, attention is now focused on more comprehensive metrics such as insurance revenue, insurance service results and profit, offering a comprehensive view of insurers' performance.