UAE – Mergers a necessity in the insurance market
Saturday, 10 08 2016, Category: Insurance and Reinsurance, Country: U.A.E
The are 60 insurance companies in the UAE including 34 Emirati companies, 26 foreign companies and 10 Takaful insurance companies, which are Sharia-compliant. These companies have 200 branches spread over seven Emirates. Moreover, there are 15 companies and 17 individuals specialized in insurance consulting, 40 companies and 45 individuals specialized in claims adjusting, 36 actuarial experts, and 20 companies specialized in health insurance. These numbers led the congestion of the Emirati insurance market and exceeded its capabilities especially given that the number of companies is huge in comparison with premiums written.
This led to burning prices and decreasing them by more than 50 percent in light of the competition among insurance companies especially as far as motor insurance, health insurance and personal insurance are concerned. Competition focused on profits without taking into consideration quality and customer service.
Source: Al Hayat