Abu Dhabi — The fast growing insurance industry in the UAE invested Dh23.080 billion in the economy, as 49.1 per cent of the funds were invested shares and bonds, 30.1 per cent as deposits and remaining in real estate, according to The Insurance Authority.
The total volume of underwriting premiums rose to Dh14591 million, says a report
on nation’s insurance sector.
According to the report issued by The Insurance Authority (TIA), the economy is
remarkably stable with the economic diversification policies paying dividends.
The development of non-oil economy, boom in services, trade and real estate
industries have positively impacted on the insurance sector.
The premiums for property insurance rose from Dh8661 million in 2006 to Dh11942
million in 2007, accounting for as increase rate of 38 per cent.
The claim ratio increased during 2007 to 62.2 per cent while it was 50.7 per
cent during 2006.
The total of the underwriting premiums for life insurance increased to Dh2649
million. The UAE companies contributed 23 per cent while foreign firms raised
the remaining 77 per cent.
The total of the underwriting premiums in insurance against property and
liability was Dh11942 million, the UAE companies had a lion’s share of 76.9 per
cent while the foreign companies’ share accounted for 23.1 per cent.
The UAE companies have a share of 54.7 per cent in retention of underwriting
premiums in insurance against property and liability: 66.8 per cent in accidents
and liability; 38.8 per cent in fire; 28.4 per cent in marine, motor, and
aviation, 17.3 per cent in other risks, 57 per cent in medical insurance.
Earned premiums from the property and liability segment of business is Dh10693
million.
Incurred Claims (net) in insurance against property and liability before the
deduction of re-insurance share accounted to Dh6655 million.
The claims ratio for insurance against property and liability property and
liability segment before the deduction of re-insurance share accounted for 62.2
per cent in 2007 against 50.7 per cent in 2006.
The total shareholders’ equity in the national insurance companies amounted
Dh15324 million.
The total invested funds amounted to Dh23080 million, 49.1 per cent of this
amount was in the form of shares and bonds followed by 30.1 per cent as
deposits.
There are 51 insurance companies, including 24 national insurance companies remaining 27 are foreign companies.