Insurance
From The Report: Dubai 2014
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Though overcrowded, the UAE’s insurance market is underpenetrated by Western standards, and there is ample room for growth. Driven by an expanding expatriate population, the market is projected to grow 10% in 2014, and anticipated regulatory changes could further boost premium growth in the medium term. Most notably, a boost is expected to come from the introduction of mandatory medical coverage. The market leaders are the best equipped to capitalise on future demand, but with more prudent regulation, many smaller players in the field may also be able to benefit from premium growth without compromising their profits.

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Overview

Room to grow: Premium growth is forecast to continue, with a boost expected from the introduction of mandatory medical coverage
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In 2012 UAE insurers underwrote Dh26.3bn ($7.2bn) in premiums, nearly half of the total gross written premiums (GWP) in the GCC region, making it the largest insurance market in the Gulf, followed by Saudi Arabia. Collectively, the two countries accounted for nearly 80% of the $16.3bn in GWP in the Gulf in 2012, according to a report on the regional insurance sector published by Alpen Capital in July 2013. By The Numbers Between 2008 and 2012 the UAE’s insurance industry grew from $5.5bn to $7.2bn…

Analysis

Round of restructuring: Moves are under way to consolidate the sector
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In September 2013, the UAE’s federal insurance regulator called for consolidation in the industry, a move that was welcomed by the growing chorus of players that have warned that the market was becoming saturated over the past five years. Although the Insurance Authority (IA) placed a moratorium on new licences for insurers and brokers in 2009 and doubled the capital requirements to establish new local firms, few believe the market can continue to support the 61 players currently licensed to operate. Growing…