Sunday, October 31, 2010
Insurance premiums realized in the
State are expected to rise to AED22 billion during 2010, marking a growth rate
of 10% as compared with AED20 billion achieved in 2009, according to H.E Eng.
Sultan bin Saeed Al Mansouri, Minister of Economy and Chairman of the Insurance
In his speech during the opening of
the events of the 9th meeting of the Arab Forum of Insurance
Regulatory Commissions (AFIRC) which kicked off in Abu Dhabi, Al Mansouri said
that, in the qualitative aspect, the local market is filled with the technical
competencies specialized in various classes of insurance.
The events of the 9th meeting
of the AFIRC organized by the Insurance Authority over two days kicked off with
the participation of the chairmen, directors, and representatives of the
insurance authorities of 16 Arab countries as well as many presidents of the
regional and international organizations relevant with insurance.
Al Mansouri said that the UAE government
strategy paid the insurance sector huge attention through the issuance of a
modern law and establishment of the IA which took the initiative to develop the
insurance sector in the State and preform a leading role in the region and an
active involvement internationally.محتوى الصفحة
He affirmed that the government will
provide full support to the IA’s efforts in order to reach the highest ranks
globally. He emphasized that since its inception, the IA has been seeking to
reorganize the local insurance market and establish thereof on the best
technical, financial, and legal standards and principles, and it intends to follow
this direction with accelerated steps.
He noted the influential reciprocal relationship
between the insurance activity and what happens in the economic and social
He said that the insurance sector in
the UAE embodies such reality accurately. In terms of the volume, the UAE
market dominates an advanced rank among the Arab insurance markets, as the
insurance premiums achieved in the local insurance market in 2009 amounted to
nearly AED20 billion and they are expected to reach around AED22 billion. At
the same time, in terms of quality, the local market is filled with the
specialized technical competencies in various insurance classes.
Al Mansouri explained that the UAE attained
advanced achievements at the level of economic policies as the State adopted
the policy of economic diversity, apart from the oil resources, and the
contribution of non-oil sectors reached 71% of the gross domestic product of
the State in 2009.
He added that the UAE has become one
of the best countries worldwide in the provision of the investment environment
that attracts investments thanks to the developed legislations and laws and
advanced infrastructure which contributed to the increasing of direct foreign
investments in the aftermath of the global financial crisis, especially in the
sectors of energy, renewable energy, petrochemicals, and the financial services
as well as the industry, aviation, and tourism which boosted the UAE
competitiveness at the regional and international levels.
He referred to the intense efforts
exerted by the UAE to support and encourage innovation and create competitiveness
in all the economic sectors in the State. The UAE ranked the first position in
the Arab region and the 24th position among 132 countries included
in the index, according to the global innovation index for 2010.
Al Mansouri noted the importance of
paying attention to many aspects when determining the answer which is evident
with the manner of protecting the insurance client, policy holders and beneficiaries,
especially in the insurance classes that target the public, which emphasized
the role of effective control and how to protect the insurance companies especially
when some of them breach the technical and financial principles adopted locally
and internationally when dealing with the insurance risks and when entering the
investment domain, and how to conciliate and coordinate between the Arab
legislations relevant with the insurance transactions.
He expressed hope to expand the base
of AFIRC membership over the current number which amounts to 16 Arab countries
to include all the Arab states.
He emphasized the importance of the
time factor in achieving the AFIRC operations and objectives in a manner that
boosts the growth of such sector. The UAE hosts the events of the 9th meeting
of AFIRC based on the unanimous decision which was made by the AFIRC members to
hold their 9th meeting in Abu Dhabi in appreciation of the advanced role
performed by the IA in the UAE, in order to improve the insurance sector in the
State and in view of the IA’s established commitment to enhance supervision and
control on the insurance sector to ensure the financial solvency and adopt the
laws and fair competition.
On his part, Yoshihiro Kawai,
Secretary-General of the International Association of Insurance
Supervisors (IAIS), gave a speech during the opening of the AFIRC where he
reviewed the latest developments in the IAIS.
During the opening ceremony, a
promotional presentation about the UAE economy and another presentation about
the developments achieved by the IA since its inception to date were presented.
Further, many insurance figures were honored for their prominent role in
developing the Arab insurance industry and the AFIRC.
Many memorandums of understanding
were recently signed between the IA, the Egyptian Financial Supervisory
Authority, and the Jordanian Insurance Authority which were signed for the UAE
by H.E. Fatima Mohammed Ishaq Al Awadi, Deputy Director General of the IA, and
the officials of the insurance authorities in Egypt and Jordan. Further, a
third memorandum of understanding was signed between the AFIRC and the General
Arab Insurance Federation.
Following the opening ceremony, the
AFIRC started discussing its agenda which included a discussion of the status quo
and future vision of the AFIRC in addition to a package of matters and internal
issues. The AFIRC will continue completing discussion of the issues tomorrow in
the presence of all the participating Arab countries.
It is worth noting that the AFIRC
was founded in 2006 and the UAE was one of the founder members. The AFIRC holds
its meetings twice a year and its decisions form the key source to the
organization and development of the insurance authorities in the Arab