UAE insurance premiums reach Dh37bn in 2015

Insurance premiums rose 10.2 percent in 2015, compared to 2014, reaching Dh37 billion, according to industry figures.

”The importance of this sector and its vital role in the national economy is demonstrated by the volume of money invested in it, which amounted to Dh45.7 billion in 2015, of which 60.5 percent is invested in stocks and bonds, followed by 20.7 percent in deposits. Shareholders’ total equity in the national insurance companies amounted to Dh17.5 billion,” wrote Sultan bin Saeed Al-Mansouri, Minister of Economy and Chairman of the Insurance Authority, in the forward to the Annual Report on the Insurance Sector in the United Arab Emirates for 2015.

”The insurance industry in the UAE has great growth opportunities. The UAE insurance market is expected to see large growth in the upcoming years, so that it can effectively contribute to the nation’s economic development.

The UAE and Gulf Cooperation Council states have huge potentials that will help the insurance sector play a significant and leading role in the Arab region,” he added.

The report identifies important aspects related to the insurance market in the UAE, serves its purpose in shedding light on the key achievements of this important sector, and illustrates the developments that were accomplished during 2015. The report also serves as a significant reference for researchers and those interested in insurance affairs in the UAE and abroad. The report further provides the financial and technical indicators which reflect the development accomplished by the insurance market in the State.

”The insurance industry in the UAE has great growth opportunities. The UAE insurance market is expected to see large growth in the upcoming years, so that it can effectively contribute to the nation’s economic development. It is worth mentioning that the UAE and Gulf Cooperation Council states have huge potentials that will help the insurance sector play a significant and leading role in the Arab region,” he noted.

In 2015, the Insurance Authority (IA) worked on completing the issuance of legislation that regulates the sector. As part of the IA’s efforts to boost the legislative base for the regulation of the UAE insurance sector, its goals are to promote the performance of local insurance markets and the entities operating in it, based on solid legal, technical, and financial foundations and to enhance the competitiveness of the sector at the regional and international levels, as per the best practices prevailing worldwide.

According to the report, the number of entities registered with the IA, as of the end of 2015, stood at 61, including 34 national insurance companies and 27 foreign insurance companies. The total number of companies underwriting all insurance classes (insurance of persons and fund accumulation operations, and property and liability insurance) included 11 national companies and two foreign companies. The number of companies underwriting only property and liability insurance included 20 national companies and 18 foreign companies. The number of insurance companies underwriting only insurance of persons and fund accumulation operations, included two national companies and seven foreign companies. There is only one national company underwriting export credit insurance. Eleven national companies operate based upon the provisions of Takaful Insurance Regulations.

There were 19 insurance agents, 143 insurance brokers, and 139 insurance brokerage companies in the State, including 139 national brokerage companies and four foreign companies. Sixteen insurance consultants are operating in the market, along with 40 loss adjusters and damage estimators, 35 actuarial experts and 23 health insurance companies, the report detailed.

Dubai Gazette