Boston, MA -- (ReleaseWire) -- 01/16/2013 -- Key Insights And Key Risks
This UAE Insurance Report considers the prospects for both life and non-life insurers in the country. As of late 2012, data confirm our view that the UAE is one of the largest and most dynamic of the insurance markets of the Middle East and North Africa (MENA) region. The published accounts of the larger listed insurance companies in relation to 2011 indicate that both segments grew at (low) double-digit rates in terms of gross written premiums. However, premium growth appears to have slowed in H112. The latest data from Salama, the multinational takaful operator based in the UAE, suggest takaful will not contribute to the overall growth of the sector in 2012.
Importantly, much of the newsflow through H112 indicated that the UAE's insurers are responding proactively to the competitive and often difficult conditions, particularly in the non-life segment. During 2011 and H112, several insurers allowed premiums and profits to contract as they focused on writing business that would contribute to profitability over the medium-to-long term. Various partnerships have been announced to exploit areas of opportunity, such as health insurance. Retention rates have risen. New products have been developed.
View Full Report Details and Table of Contents
HDFC Life, the largest private sector life company in India, has established an operation in Dubai that focuses, not unreasonably, on wealthier non-resident Indians (NRIs). The majority of companies in the UAE's insurance sector were largely unaffected by the volatility of global financial markets through 2011.
We remain of the view that some kind of consolidation will take place in the competitive landscape. The largest UAE insurers - such as Salama, Oman Insurance Company and Abu Dhabi National Insurance Company (ADNIC) write annual premiums of around US$600-800mn. By this metric, they are roughly half the size of Tawuniya, the largest insurance company in Saudi Arabia and would rank as no more than medium-sized players in most other countries outside the MENA region. Many of their competitors in the UAE are much smaller.
Over the last quarter, BMI has made the following changes to this industry report:
- The analysis incorporates BMI's latest forecasts for the UAE's economy, including details in relation to auto sales and trends in the healthcare sector.
- The analysis takes into account company comments in relation to H112.
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Financial Services research reports at Fast Market Research
You may also be interested in these related reports:
- Insurance in United Arab Emirates
- United Arab Emirates Pharmaceuticals & Healthcare Report Q4 2012
- United Arab Emirates Oil Markets, 2012
- United Arab Emirates Gas Markets, 2012
- United Arab Emirates Autos Report Q4 2012
- United Arab Emirates Information Technology Report Q4 2012
- United Arab Emirates Consumer Electronics Report Q4 2012
- United Arab Emirates Retail Report Q4 2012
- United Arab Emirates Water Report Q4 2012
- United Arab Emirates Foodservice: The Future of Foodservice in United Arab Emirates to 2016