IA’s achievements reflect a luminous image of the UAE insurance sector future.
Abu Dhabi on December 3, 2016
The Insurance Authority has recently organized a special ceremony to mark the UAE’s 45th National Day at the IA's headquarters in Abu Dhabi. The ceremony was attended by HE Ibrahim Obaid Al Zaabi, Director General of the Insurance Authority, governmental and local authorities’ officers, IA’s partners, managers of insurance companies and insurance-related professions, customers and partners.
The ceremony was kicked off with the UAE’s national anthem, followed by art and heritage shows and popular contests. Each showcase embodied the spirit of the federation and narrated the story of the UAE’s founder, the late Sheikh Zayed bin Sultan Al Nahyan, and the founding fathers and rulers of the UAE as they built up the country and its citizens. The showcases then explored the subsequent journey of progress and prosperity seen in various fields in the UAE under the auspices of the wise leadership.
This ceremony also witnessed the participation of a group of students with special needs from the Zayed Higher Organization for Humanitarian Care & Special Needs who were keen to share the National Day celebrations with the IA.
Due to this occasion, IA honored the companies that achieved positive results in the field of Emiratization in the insurance sector as well as the application of financial instructions issued by IA.
In the field of Emiratization, National Health Insurance Company (“Daman”) and Abu Dhabi National Exhibitions Company (“ADNEC”) and National General Insurance Co. were the best companies that achieved positive results as to Emiratization, while Abu Dhabi National Takaful Insurance Company, Saudi Arabian Cooperative Insurance (“SAICO”) and Oman Insurance Company were the best companies as to the application of financial instructions issued by IA.
At the end of ceremony, Al Zaabi honored the companies that achieved such positive results and the IIA’s staff within the Happiness Initiative at IA level.
In 2016, IA has achieved outstanding results that increased the growth of insurance business in UAE and promoted the UAE insurance market competitiveness and leading role in the Region.
The value of all the written premiums in all insurance branches operating in the Emirati market amounted to AED 37 billion in 2015, with a growth rate of 10.2% if compared to AED 33.5 billion in 2014.
The amount of money invested in the sector has been recorded at AED 45.7 billion in 2015, and this affirms the importance of the insurance sector and its vital role to the national economy. Moreover, the value of rights of national insurance companies’ shareholders recorded (AED17.5) billion. United Arab Emirates ranked among ten global leaders in the «Significant Growth in Insurance Premiums» Index, according to a report lately prepared by Ernst & Young and Oxford Economics and occupied the sixth position in terms of “Less Level of Risk”, so that the UAE insurance sector maintains its flexibility.
In 2016, IA has completed the issuance of regulatory laws, as it is keen to support the legislative base for regulating the UAE insurance sector, lawfully, technically develop the performance of local market and entities working therein and increase its competitiveness at regional and internal levels as per the latest international standards and practices.
In 2016, the Insurance Authority issued a regulation for unifying motor vehicle insurance policies, which includes the unified motor vehicle insurance policies against loss and damage and civil liability. This represents a significant and specific movement towards the developments of regulatory principles and technical rules for developing the performance of UAE insurance market and vehicle insurance sector and protecting the policyholders’ rights, as they include terms and conditions suiting the competitive level of UAE economy and coping with the best practices prevailing in the insurance industry worldwide.
The regulation, which includes many benefits for the policyholders and local market which were not mentioned in the previous model insurance policies, aims to protect the rights of insurance policyholders and insurers’ shareholders as well. It also aims to protect the companies from the risks to which they may be exposed in the future, in a manner contributing to the development of technical principles and rules required for creating modern regulatory bases for the UAE insurance market in accordance with the international best practices. This increases the insurance sector’s contribution to GDP and supports the national economy in all sectors according to sound and vigorous bases.
Development of the economic, urban and social activities in the UAE has been reflected on the insurance sector, as the value of the written premiums in properties and liabilities insurance branches increased from AED 24.9 billion in 2014 to AED 27.5 in 2015, with a growth rate of 10.4%.
Total amount of written premiums in life and capital formation insurance branches is AED 9.5 billion, of which the national companies’ share is 20.6%, while the foreign companies’ share is 79.4%.
Total amount of written premiums in properties and liabilities insurance branches is AED 27.5 billion, of which the national companies’ share is 74.1%, while the foreign companies’ share is 25.9%.
The number of companies registered in the IA’s records amounted to 61 insurance companies by the end of the last year, including 34 national companies and 27 foreign insurance companies.
The IA’s records contain 19 insurance agents, and 143 insurance brokers (including 139 national brokers and 4 foreign brokers). The number of insurance consultants amounted to 16, the number of loss adjusters and surveyors amounted to 40, while the number of insurance mathematicians amounted to 35 and health insurance claims management companies amounted to 23.
IA continues taking the practical actions to increase the rate of Emiratization in the insurance sector and enhance the skills and experiences of citizens working in this sector. By the end of last year, total number of employees working in the technical departments in insurance companies operating in the UAE amounted to 2900 employees, including 340 UAE citizens representing 11.7% of the total number of employees in these departments.
The IA is keen to boost the mechanisms that raise the insurance awareness of policyholders and the public. This aim is in line with its vision and mission, which aims to boost the competitiveness of local insurance markets and improve them so that they are at a world-class level, thereby ensuring that policyholders and beneficiaries are covered by insurance protection. In 2016, the IA has launched many awareness campaigns, including various and suitable campaigns that are introduced to the policyholders and the public, using the means of media and platforms of specialized exhibitions across the UAE.
Furthermore, IA has remarkably expand its international relations by signing Joint Cooperation Memoranda, organizing conferences and meetings aiming to introduce and develop the UAE insurance market, taking part in official meetings of authorities and organizations that supervise the insurance at the Arab, Islamic and international levels, as well as conferences and forums specialized in the affairs of insurance and money worldwide.
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