H.E. Eng. Sultan bin Saeed Al Mansouri, declared that the size of the written premiums of all insurance classes and types amounted during the last year AED 22 Billion i.e. an increase of 10% as compared to that of 2009.
The Minister in the preface of that annual report issued by the IA yesterday on UAE insurance sector activity during 2010 assured importance of the insurance sector as its vital role in the national economy indicating that the rights of the shareholder of the national insurance companies estimated AED 14.1 Billion and the total technical provisions of all insurance classes and types amounted AED 11.4 Billion.
The IA said “Issuance of the report comes in the framework of its efforts to enhance cognitive awareness of the aspects related to UAE insurance market and shed light on the ongoing achievements attained by this sector and the important role that leads to enhancing growth of the national economy.
The Minister indicated that the establishment of an independent authority to regulate UAE insurance sector by virtue of the Federal Law No (6) of 2007 reflects the State’s care given to the sector and its role in protecting the activities related to the economic, commercial, industrial and urban sectors, to provision of health protection to all classes of the community indicating the this care lays additional responsibility on the officials of the IA in order to exert utmost efforts towards completing the legislations organizing this important sector and availing the qualified technical cadres and paying ongoing attention to training to match this development and ensure implementation of the best international standards to organize UAE insurance market.
He added that the IA is completing the regulatory legislations still and the executive regulation of the Federal Law No (6) and the Ministerial Decree on the minimum required capital od insurance companies, the Board Resolution on Anti-money Laundering and Combating Terrorism Financing in insurance activities have been issued. The IA as well issued Takaful Insurance Regulation No (4) of 2010 which is deemed the first of its kind in the Arab world level in addition to the issuance of the Regulations No (3) on Rules of Professional Practice & Code of Conduct.
H.E. Al-Mansouri assured that IA’s endeavour to complete the greater part of the legislations during 2011 to develop business environment and enhance the competitive environment of this essentail sector and thus attaining further progress and growth in the economic development constituents to materialize the vision of the judicious leadership of H.E. Sheikh Khalid Bin Zayed Al-Nahyan, the President (May Allah Protect Him) and the directives of H.H. Sheikh Mohamad Bin Rashid Al Maktoum, the Vice President, Prime Minister and Ruler of Dubai and their brothers the members of the Supreme Council, the Rulers of the Emirates and expressed his thanks and appreciation of the insurance companies operating in the Stat for their cooperation in providing the IA with the statistical data required to issue this report.
In her turn, H.E. FMIA, DDG of the IA assured that the monitors of the insurance sector activity in UAE in 2010 reflect extent of the development attained in UAE insurance market and the essential role of the insurance sector in enhancing growth of the national economy. She pointed out the positive reflection of the economic situation in UAE insurance activity emphasizing that UAE economy is distinguished for stability due to the wise policy adopted by the State through diversification of the national income resources.
The Companies and the Agents:
She referred to the general framework of the insurance companies and the professions related to insurance in UAE by reviewing the number of those registered in the specialized registers till the end of 2010 indicating that the number of the insurance companies registered with the IAE amounted up to the end of the last year 58 companies out of them 32 national companies and 27 foreign companies while the number of companies carrying out all classes of insurance (Insurance of persons, capital formation operations, insurance of property and liability insurance amounted 11 national companies beside 2 foreign companies.
She indicated that the number of the companies carrying out property and liability insurance only amounted 18 national companies and 17 foreign companies and the number those carrying out insurance of persons and capital formation operations only amounted 2 national companies and 8 foreign companies and those carrying out export credit insurance one national company. She drawn the attention that the national companies are applying Takaful insurance amounted 9 companies.
She added: “The number of the insurance agents is 11, the insurance brokers 170 out of that 163 national brokers and 7 foreign brokers while the number of the insurance brokers decreased by 20% as compared to 2008 due to writing off those brokers who failed to adjust their statuses according to the Ministerial Decree No 543 of 2006 on Organization of Practicing the profession of Insurance Broker.
The number of the insurance consultants operating in UAE amounted 22, the loss ---- adjusters 68 and actuarians amounted 21.
National and Foreign Companies
The DDG of the IA indicated that total written premiums of Insurance of persons and capital formation operation (life and capital formation) amounted AED 4 Billion in 2010. The share of the national companies 34.2% and the foreign companies 65.8%.
She added: “The share of the national insurance companies out of the total written premiums of the property and liability insurance 77.8% of the total amounting AED 18 Billion while that of the foreign insurance companies of same 22.2%” indicating that by distributing these premiums over the main types of the insurance of property, accident liability insurance comes first scoring 44.2% followed by health insurance 27.5% then fire insurance 12.6%, Road, marine and air transport insurance 12.4% and other insurances 3.3%.
The DDS of the IA indicated that the number of the employees of the insurance companies in the UAE amounted last year 7271 out of 397 are national employees representing 3.3% of the total.
The report of the IA demonstrated the general framework of the UAE insurance sector. As to the legal framework organizing insurance industry, UAE insurance sector is governed by the Federal law No 6 of 2007 on the creation of «Insurance Authority» and organization of it work which became effective on August 28, 2007 and the resolution of the Board of Directors No. (2) of 2009 on issuance of the Executive Regulations of the Federal Law No. 6 of 2007 and all the rules, regulations, resolutions issued and will be issued in implementation of the provisions of the Law.
The report as well dealt with the general framework of UAE insurance sector as to the organization structures of UAE insurance market i.e. the IA, its Board of Directors and Emirates Insurance Association.
The revealed in respect of the IA that the Federal Law No (6) of 2001 on the creation of «Insurance Authority» and organization of it work entrusted the IA to implement its provisions and shoulder its rules in organizing and supervising the insurance companies and the professions related to insurance in a manner that secures suitable environment to develop and enhance the role of the insurance industry to secure individuals, properties and liabilities against risks to protect the national economy, collect national savings, develop and invest these savings to support UAE economic growth, encourage fair and positive competition, provide the insurance services in suitable technical rates and coverage and Emiratize jobs in UAE insurance market.