Abu Dhabi June 15,
The Insurance Authority (IA) organized the forum
of partners and customers in Abu Dhabi. The event was attended by senior
officials of the sector, managers of the national and foreign insurance
companies operating in the State and their representatives, managers of the
insurance-related positions, customers, partners, and policyholders as part of
the annual Ramadan forum held between the IA and the local insurance sector
H.E. Ebrahim Obaid
Al Zaabi, Director General of the IA, confirmed that the insurance
sector in the UAE is developing one year after another under the efforts
exerted to regulate the activity of the market and performance of the operating
companies to catch up with the economic development in the State and face the
He pointed out the insurance premiums written in
the State recorded nearly AED37 billion in 2015 with a growth rate exceeding
10% than 2014 according to the initial estimates. He said he hopes that the
companies deliver better performance during the present year.
He went on to say: “The insurance market in the UAE is the biggest Gulf
and Arab market dominating 40% of the premiums written in the Gulf market and
33.5% of those written in the Arab market. Further, it has the best
competencies and expertise working in the insurance sector at the Arab level”.
He added that the IA continuously seeks to develop the performance of
the sector and boost its competitiveness by issuing the regulations, laws, and
regulatory, technical, and financial decisions. In this regard he referred to
the financial instructions, the Insurance Brokerage Regulation, and the
decision to review the pricing policy adopted by the insurance company in the
classes of property and liability insurance and the description of the
principles and rules adopted in pricing as well as the evaluation of such
policy by a licensed actuary who is registered with the IA.
He indicated that the IA has many laws and
regulations under consideration which are expected to enhance the status of the
insurance market in the State and contribute to controlling the market
conditions and uplift the performance of companies and insurance-related
professions. He noted that the IA is keen to protect the rights of
policyholders, shareholders, and investors.
Mr. Al Zaabi called upon the insurance
companies to adjust their status, enhance their business, and diversify their
products to improve their performance and profits as well as their abilities to
face the difficulties and challenges.
He affirmed that the insurance companies
and insurance-related professions in the UAE market are key partners in
developing the performance of the sector and boosting the local market status
at the regional and international levels.
The Director General of the IA reaffirmed the importance of paying
attention to Emiratization by the companies, being a national and strategic
issue, and to train the competencies working in the sector in order to develop
its performance in various aspects of insurance.
In turn, the managers of the insurance companies asserted the intensive
efforts exerted by the IA to develop the performance of the sector and local
market. They referred to the regulatory and legislative decisions issued
recently by the IA which will contribute to a quantum leap in the sector
performance and market competitiveness.
They considered that the IA’s decision to review and evaluate the
insurance rates by hiring actuaries in accordance with technical and regulatory
controls will contribute to taking the sector to a more developed stage and
will end the suffering of many companies which sustain damages due to the non-technical
pricing processes and the price war practiced by some companies causing adverse
impacts in the markets and losses for the companies and the sector.
The companies’ managers valued the IA’s initiative organizing the forum
and its commitment to continuously communicate with the sector’s
representatives which contributes to uplifting the performance of the local
insurance market and serves the national economy.