Insurance
From The Report: Dubai 2013
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The UAE is one of the largest insurance markets in the Gulf region, and Dubai takes an impressive share of the country’s total premiums. There is still plenty of room for growth in life and general, with the period ahead likely to see more of this potential realised. More specifically, Dubai is moving toward compulsory health insurance, and there are signs that the infrastructure and real estate project pipeline is coming back to life. Demographics are also playing their part, as the emirate’s population swells and awareness of insurance needs grows; the population of the UAE grew by 5.6% in 2011 and is expected to keep increasing as the economy expands, creating a range of new opportunities for insurance companies. Moreover, legislative changes – particularly over health – will likely have a major impact when they are finally implemented, with some fierce future competition for the health segment widely expected.

Articles from this Chapter

Overview

Gaining ground: All segments hold potential for further expansion
OBG
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The UAE is one of the largest insurance markets in the Gulf region, with Dubai taking an impressive share of the country’s total premiums. There is still plenty of room for growth in life and general, with the period ahead likely to see more of this potential realised. Dubai is moving towards compulsory health insurance (see analysis), while there are signs that the infrastructure and real estate project pipeline is coming back to life. Demographics are also playing their part, as the emirate’s…

Analysis

Cover for all: Mandatory health insurance is due to be introduced soon
OBG
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Among Dubai’s insurers, one of the most widely anticipated developments set for the year ahead is the likely introduction of mandatory, employer-funded health coverage for all Dubai residents. This is expected to give a major boost to both premiums and competition as local insurers do battle for health care accounts. The move is expected to ease growing pressure on the accident and emergency services currently provided by the Dubai Health Authority (DHA), while retaining more expatriate medical…

Analysis

Risk management: While reinsurance levels remain high, local insurers are expected to retain a growing share of business on their books
OBG
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The high levels of reinsurance activity in the Dubai market follow a regional pattern which saw GCC insurers cede an aggregate 46% of their non-life premium income in 2011, according to the Qatar Financial Centre’s (QFC) “GCC Reinsurance Barometer”. While some of this business is directed towards local firms, the majority is placed with foreign reinsurers in the established reinsurance markets of Europe, such as the UK, Germany and Switzerland, or the specialist hubs which have developed…