Foreign reinsures obtain half of the premiums in UAE
Tuesday, 08 04 2015, Category: Insurance and Reinsurance, Country: U.A.E
National insurance companies ceded from the local market premiums amounting to AED 22.64 billion to reinsurance companies outside the country during the past three years because of weak capitals and the absence of a national reinsurance company that has enough capacity to cover large risks.
The statements of the Insurance Authority revealed that the percentage of premiums ceded outside the country reached 45.2% of the total premiums written by national insurance companies in the period stretching from 2012 to 2014 and which reached around AED 50.12 billion. Moreover, the premiums ceded to global reinsurance companies outside the country during three years in the Fire branch represented 76.5% against the retention of 23.5% of total premiums in this sector which posed AED 4,697 billion during the indicated period.