UAE – Mergers solution to a saturated market
Thursday, 05 04 2017, Category: Insurance and Reinsurance, Country: U.A.E
The UAE market is considered to be the most crowded by insurance companies compared to the region. There are 60 insurers of which 34 are national and 26 are foreign companies. However, the market is of a middle size and does not exceed AED 44 billion.
Furthermore, there are 21 insurance agents, 164 brokers of which 159 are national and 5 are foreign, 22 insurance consultants, 72 loss adjustors, 43 actuaries, 22 health third party administrators.
The financial expert Mr. Majd Maaitah said that the presence of this large number of companies is unnecessary in the sector. Therefore, they have to bring mergers and acquisitions to the table, indicating that there are 10 or 15 or even 20 insurers that have a strong solvency among the 60 insurers. Among these 60 insurers, one third have a market share not exceeding 5 percent.
Source: Al Bayan - UAE