Insurance in Dubai getting alot of Challenge
Dubai Real Estate - The insurance sector has a key role in the development of any economy. He is regarded as the principal financial instrument for hedging risk in society. However, the life insurance business is generally practiced in the United Arab Emirates for religious and cultural reasons and the high cost of life insurance.
The CFC was the insurance sector under the federal law (9) in 1984, after a ministerial decision of the executive and regulation. The Regulatory Authority insurance was in 2007 by federal law (6) to support, with efficiency and development of the sector.
In 2006, there were 48 insurance companies in the United Arab Emirates. In total, of which only 24 were in the United Arab Emirates and the rest were foreign insurance companies. There were only 13 companies can make the life and non-life insurance, activities in the country, including 11 national and 2 were foreigners. The implementation of non-life insurance, there were only business activities, 31 of which were 13 national and 18 were foreigners. Companies that do life insurance business are only 4 foreign firms
The investment in the insurance field of the UAE economy fell by 5.6%; AED 18273 million in 2005 to a total of 17270 million AED in 2006. The decline in investment may be due to declining investment in the stock market has experienced a decline of 18% of AED 11986 million in 2005 to AED 9869 million during the year 2006 on the basis of market price of corrective actions.
Insurance
In 2006, insurance premiums, a growth sector of 31.2% compared to 2005. Within the non-life insurance premiums increased by 30% AED 6654 million in 2005 to AED 8661 million in 2006. In addition, the activity of life insurance experience an increase of 37% of the premiums; AED 1205 million in 2005 to AED 1651 million in 2006.
In 2006, Dubai represents the largest share of 48% in the United Arab Emirates on total insurance premiums, followed by Abu Dhabi by 35%. Together, the two emirates have accounted for 83% of the total UAE insurance premiums.
The share of life insurance in comparison with non-life insurance business in the United Arab Emirates total insurance premiums is small, ie 16%. However, life insurance premiums for the segment was soon a cumulative annual growth of 21% of AED 639 million in 2001, AED 1651 million in 2006.
The assurance of the economy in the United Arab Emirates is expected that in an accelerated pace because of the growing population of the country. There is however also a few setbacks in the field, which deserve special attention, such as health insurance supplements. The second is the implementation of the practical welfare of civil liability cases, such as interruption of exploitation, crime, the notion of life, trip cancellation, medical evacuation, multi-trip, the supply and procurement, universal life and living in the United Arab Emirates may, by vertical integration and strategic alliances and growth potential in this sector.