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UAE Insurance Companies’ Investment Total Dhs 21.6B in 2008











The Insurance Authority has launched its annual report on the UAE Insurance sector highlighting the development achieved by the significant sector during last year.

It quoted Minister of Economy and Chairman of the Board Insurance Authority Sultan Saeed Al-Mansouri as saying Dhs 21.6 billion were invested in this sector last year. Shares and bonds account for 45% of these investments while deposits account for 34.2%, according to Al-Mansouri.

The new report asserts the substantial role of insurance sector in the UAE national economy.

The value of underwriting premiums at the insurance market amounted to Dhs 18.3 billion, he added.

The report highlights the most important achievements of the Insurance Sector in the country.

The report said the UAE economy is remarkably stable as a result of the prudent policy adopted by the government to boost diversification of national income sources.

The development of economic, constructional and social activities in the UAE has positively reflected on the Insurance Sector, Al Mansouri said.

"The premiums within the branch of insurance against property and liability increased from Dhs 11.9 B. in 2007 to Dhs. (15.6) B. in 2008 accounting for as increase rate of 31.1% . The claim ratio fell to 57.6% in 2008 down from 62.2% during 2007", the report said.

Following are excerpts from the new report: 3. General Frame of Insurance Companies and Agents and Insurance Related Professions: The number entered in the Special Register until the end of 2008 was as follows: Insurance Companies: (56) Insurance Companies, out of which (29) national insurance companies incorporated in the U.A.E., (27) foreign insurance companies incorporated abroad. The number of companies carrying out all insurance activities (insurance of human life and accumulations of funds operations and insurance against property and liability) are (11) national companies and (2) foreign companies. The number of companies carrying out insurance against property and liability only are (16) national companies and (17) foreign companies, while the number of insurance companies carrying out insurance of human life and accumulations of funds operations) only are(2) national companies and (8) foreign companies.

Insurance Agents: There are (21) Insurance Agents.

Insurance Brokers: There are (203) Insurance Brokers in the U.A.E. out of whom there are (188) national brokers and (15) foreign brokers.

Insurance Consultant: (18) Insurance Consultants operating in the U.A.E.

Survey and Damage Assessment Experts: (70) Experts operating in the U.A.E.

Actuary: (14) actuaries Second: Economic Climate and its Reflection on Insurance Business in the U.A.E.: The State economy is remarkably stable as a result of the prudent policy adopted by the state though diversification of national income sources. The development of economic, constructional and social activities in the state has positively reflected on the Insurance Sector. The premiums within the branch of insurance against property and liability increased from Dhs.(11.9) B. in 2007 to Dhs.(15.6) B. in 2008 accounting for as increase rate of 31.1% . The claim ratio decreased during 2008 to 57.6% while it was 62.2% during 2007.

Third : Volume of Insurance Market Business in the U.A.E. and Insurance Benchmarks in 2008: The total of the underwriting premiums for insurance of human life and accumulation of funds operations amounted to Dhs (2.7) B. The share of the national companies in these premiums accounted for 32.8% while the foreign companies share accounted to 67.2%.

The total of the underwriting premiums in insurance against property and liability was as follows: Dhs (15.6) B. share of national companies in these premiums accounted for 77.4% while the foreign companies share accounted for 22.6%.

The rate of each of the above mentioned type of insurance was as follows: 53.6% in accidents and liability branch.

10.5% in fire branch.

12.38% in land, sea and air transport branch.

3.9% in other risks branch.

19.8% in medical insurance branch.

The percentage of national insurance companies retention of underwriting premiums in insurance against property and liability branch was 50.9% while the retention percentage for each branch was as follows: 58.7% in accidents and liability branch.

38.1% in fire branch.

20.5%in land, sea and air transport branch.

18.1%in other risks branch.

60.6% in medical insurance branch.

Earned premiums for insurance against property and liability branch :Dhs (14.5) B.

Incurred Claims (net) in insurance against property and liability branch before the deduction of re-insurance share accounted to Dhs. (8.3) B.

The claims ratio for insurance against property and liability branch before the deduction of re-insurance share accounted for 57.6% in 2008 against 62.2% in 2007. The claims ratio in each branch were as follows: 55.9% in accidents and liability branch.

81.8 %in fire branch.

33.4% in land, sea and air transport branch.

66.3% in other risks branch.

68.5% in medical branch.

The total technical reserves for insurance of human life and accumulation of funds operations and insurance against properties and liabilities amounted to Dhs. (9.3) B.

The total shareholders’ equity in the national insurance companies amounted Dhs. (12.3) B.

The total invested funds amounted to Dhs (21.6) B, 45% of this amount was in the form of shares and bonds followed by 34.2% as deposits.

Fourth : Number of Insurance Companies Employees: The number of employees in the insurance companies operating within the U.A.E. during 2008 reached as far as (6687) out of which there are only (412) U.A.E. nationals at the rate of 6.2%.

Emiratise of the insurance sector have been added to the objects of the human Resources development committee in the banking sector according to the ministerial service committee decision no (16/1) of 2006.

 

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