ABU DHABI / WAM
The Insurance Authority (IA) is discussing a proposal to establish a major national life insurance company in which all licensed national companies will hold stakes, the insurance regulator said today.
The proposal is based on the performance of life insurance market valued at AED8 billion where the share of foreign companies stands at 81 percent leaving only 18 percent to national companies, the Insurance Authority said in an emailed press release.
Al Zaabi said that the UAE’s insurance market accounts for 41 percent of volume of insurance premiums in the Gulf Cooperation Council area, and 33 percent of insurance premium volume in all Arab countries.
The discussions took place at a brain-storming session bringing together Ibrahim Obaid Al Zaabi, Director General of the Insurance Authority, and general managers of licensed life insurance companies.
Al Zaabi said establishing a major life insurance company with all licensed insurers as shareholders is part of the regulator’s efforts in developing the insurance sector, enhancing the performance, growth and competitiveness of national companies to create a competitive insurance hub that is competitive both regionally and globally.
The authority is making efforts to developing life insurance portfolios, increase diversity of insurance products offered by national companies while maintaining the rights of policyholders and their investment savings.
Participants in the session also discussed ways of increasing the contribution of the insurance sector to the country’s GDP.
Al Zaabi presented the Insurance Authority’s vision for developing the sector in the coming years and explained how to overcome obstacles and challenges.
Al Zaabi stressed that the Authority was keen on carrying out the policy pursued by the country’s prudent leadership to support national companies and enhancing their performance to benefit economic development.
Realising the vision of Insurance Authority for upgrading the performance of the national companies and depends on cooperation with insurance companies.
He said: “We in the IA are keen to cooperate and consult with companies to develop their performance, increase their profits and realise the interests of the market, and the national economy as well.”