During the opening of the WTC in Dubai,
Al Zaabi: AED4 billion is the size of Takaful insurance investments in the UAE, a growth rate of 135%
Dubai, April 12th, 2016
H.E. Ebrahim Obaid Al Zaabi, Director General of the Insurance Authority (IA), confirmed the growth of the total investments in the Takaful insurance market in the UAE during 2015 at a rate of 135%, recording AED3.873 billion. He also indicated a growth in the total assets in the market at a rate of 88%, recording AED7.140 billion.
The statements came in his opening address before the 11th annual World Takaful Conference (WTC) held in Dubai on Monday, April 11th, 2016. The opening session was attended by more than 300 figures who have been contributors, active players and makers in the Takaful field.
Mr. Al Zaabi added that the capital of ordinary shares of companies operating in the Islamic Takaful insurance sector increased at the rate of 106%, amounting to AED2.539 billion, while the total equity rights increased at the rate of 31% to amount to AED1.993 billion.
He went on to say that all indicators and statistical data of the Takaful insurance companies in the UAE assert the continuous growth and expansion in the Takaful activity in all areas. The Takaful indicators during the period 2008-2015 demonstrate the rising number of Takaful insurance companies licensed by the UAE at the rate of 57%, amounting to 11 companies in 2015. The written premiums of such companies rose at the rate of 33% up to nearly AED2.711 billion.
He said that the UAE is one of the Takaful industry pioneers worldwide and that it is number one internationally in terms of the initiatives made to codify the Islamic financial transactions, including Takaful insurance. Such indicators reflect the opportunities which the Takaful industry has in the UAE market and the considerable growth opportunities available to the Takaful companies operating in such market. Such opportunities are supported with the continuous legislations and regulatory laws passed by the State which push such industry ahead. The IA has issued the financial instructions to the Takaful insurance companies end of 2014 which gave the UAE precedence at the level of the Middle East in terms of adopting the latest requirements of financial solvency measurement.
Mr. Al Zaabi indicated that early this year the IA announced the financial reporting requirements which must be furnished by the companies to the IA according to the financial instructions, including requiring all the insurance companies to amend their bylaws and work procedures in compliance with the supervisory reporting requirements and the requirement of appointing an independent auditor and an actuary licensed by the IA as well as establish an internal audit department. Currently, the IA is considering creating an electronic supervisory system as per the best international practices.
In conclusion, Mr. Al Zaabi said that there are many other requirements for the next two years, including establishing an investment committee, developing the investment strategy of the company, meeting all requirements related to risk management and adhering to the investment limits, to the status regularization in 2018 and boosting the protection of the rights of policyholders and beneficiaries on the one hand and the national economy on the other hand.