UAE – 7 challenges facing Takaful locally
Saturday, 07 15 2017, Category: Insurance and Reinsurance, Country: U.A.E
Takaful companies face 7 main challenges which prevent them from increasing their shares of the Emirati market especially given the strong competition of traditional companies whether they are local or foreign. Therefore, due to this competition Takaful companies only have a 15% market share of total insurance premiums even though the number of Takaful companies represents 30 of the total number of insurers in the UAE.
1. Stronger underwriting of some insurance companies, which choose prudently their risks in order to decrease losses.
2. Large increase in prices in Gulf markets including the UAE during the past two year after the application of actuarial pricing.
3. Slower insurance activities due to a marked decrease in gas and oil prices, which have an impact on economic activity.
Source: Al Bayan