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.