Insurance
From The Report: Dubai 2015
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The introduction of compulsory medical insurance in 2015 will provide universal coverage for all residents of Dubai by 2016, with the health insurance market expected to grow from 1.5m to 4m covered individuals by that time. The UAE’s insurance sector is the largest in the region, accounting for some 45% of all gross written premiums in 2013, but its low penetration rate highlights the market’s potential for further expansion, and indeed the sector continues to outpace the state’s GDP growth. Regulations that took effect in November 2014 raised minimum capital requirements for insurance brokers, from $272,000 to $1.36m and $2.72m for local and international brokers, respectively, with these changes expected to improve market standards going forward.

Articles from this Chapter

Overview

Greater transparency and proposed regulatory reforms to boost Dubai’s long-term insurance prospects
OBG
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In the UAE, insurance is licensed by the federal regulator for operators in all seven emirates, the Insurance Authority (IA). The sector is highly competitive, with 60 companies angling for business, according to the IA’s 2013 annual report, in a market where insurance has not yet gained popular acceptance as an essential financial service. Owing to a low penetration rate, at about 2%, the long-term prospects for insurers in Dubai and in the country as a whole are positive, with significant growth…

Analysis

Healthy developments: Compulsory medical insurance creates new sector opportunities
OBG
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The long-awaited introduction of compulsory medical insurance in Dubai took effect in September 2014, through the first stages of a phased implementation that will bring universal health coverage to all the emirate’s residents by 2016. The plan, which was approved by the government in late 2013, is expected to create new opportunities for insurers, though price competition and thin project margins may be on the cards due to crowding in the UAE market. For the broader market, a jump in the overall…