Al Zaabi inaugurates the 2017 World Takaful Conference in Dubai
H.E. Ibrahim Obaid Al Zaabi, the Director General of the Insurance Authority, has inaugurated the World Takaful Conference, which was launched in Dubai on 11 April 2017.
"The number of Takaful insurance companies increased from 3 companies in 2007 to 11 companies by the end of 2016, all of which are national companies. The total value of written premiums by Takaful insurance companies licensed by the Insurance Authority at the end of last year reached AED 3.64 billion with an increase of approximately two billion compared with 2008. The total investment yield achieved in Takaful insurance companies increased by 163% to reach AED 171 million in 2016. Total assets also increased by 132% to reach AED 8.789 billion in 2016", said Al Zaabi.
He clarified that the total equity increased 31% to reach AED 1.987 billion and ordinary share capital grew by 111% to AED 2.61 billion in 2016 compared to 2008.
Adding further, H.E. Al Zaabi pointed out that The UAE is considered a leader in the global Takaful industry and the world's leader in the Islamic financial transaction codification initiatives. Compared with 2008, the total investments have also increased by 579% to reach AED 4.323 billion in 2016.
An Insurance Model
Al-Za'abi said that in terms of regulation of the sector, the Insurance Authority issued in 2010 the Takaful insurance regulations, which is considered an insurance model in the Arab world and is considered the most comprehensive regulations at the Islamic level. Referring to the issuance of financial instructions for the financial, technical, investment and accounting activities of Takaful insurance companies in 2014, he pointed out that these instructions have given the UAE the precedence over the Middle East to adopt the latest requirements to measure the financial solvency of the UAE and raise the rating of UAE companies and enhance the positive outlook towards them.
He said that the Authority is currently working on the project of organizing life insurance and family Takaful. In this respect, he asked the companies to submit their comments and suggestions on the project in preparation for its issuance during the next stage.
Al Zaabi has also conveyed that these indicators and achievements assure the growth opportunities of the UAE's Takaful sector and that many international investment institutions and insurance companies are looking to the UAE market as the focus of growth in the insurance and Takaful sector in the coming years.
He considered the UAE's hosting of the World Takaful Conference emphasizes the position of the Takaful industry and the pioneering role of the UAE. He pointed out that the conference represents a global platform for exchanging ideas and experiences to develop this vital sector.
He said that the sector is one of the most prominent evidence of products and services that comply with Islamic law, and reviewed a number of achievements during the last phase, notably the continued growth and increasing demand for Takaful products of various types.
He added that Takaful transactions have crossed the markets of Islamic countries, to impose themselves strongly in most European markets and the world, and Takaful companies have succeeded in proving their ability to provide insurance protection in all economic fields.
The qualitative development of the Takaful Law has contributed to the expansion of meeting the customer and institutions requirements, and the credibility of Takaful's products has contributed to the expansion of Takaful markets. The goodwill transactions have strengthened the relationship of the company with shareholders and clients and developed the Takaful business environment.
He added further that despite these successes, there are other areas that need to be focused on to ensure sustainable growth in the industry and enhance its role and performance in the global markets, where there is a continuing need to develop Islamic financial regulations to cope with the economic changes and overcome the challenges.
The Director General of the Insurance Authority stated that despite the diversity of Takaful products, it still needs more creativity and innovation to meet the aspirations of the international markets. He stressed on the importance of adopting Takaful companies to adopt good governance regulations that provide them with risk protection, focusing on transparency and avoiding braches in order to strengthen the components of trust. In line with the tenth anniversary since the establishment of the Insurance Authority, Al Zaabi said that the Authority has accomplished many achievements at all levels, including Takaful. The UAE ranks among the top ten in the world in achieving "significant growth in premiums" according to the reports of international institutions. Also, the Insurance sector in the UAE is the regional best in calculating opportunities and risks.