Research firm Bharat Book Bureau paints an optimistic picture of
the potential of the United Arab Emirates’ (UAE) insurance market
in a new report, UAE Insurance Market Forecast to
2012.
According to Bharat, the UAE’s insurance
enjoyed a CAGR of around 30.5% between 2006 and 2009, and can be
expected to remain buoyant, driven by the UAE’s strong economic
growth. Also positive, believes the research firm, are government
initiatives to promote the industry.
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Bharat’s research indicates that growth in the
non-life segment will be particularly strong thanks to a
significant increase in the availability of underwriting capacity.
In the life sector, Bharat expects growth will be driven by Islamic
law-based takaful insurance, private pensions and the
increased adoption of the bancassurance channel.
Prospects for the private health insurance
sector are also solid following the introduction of compulsory
insurance in 2010. Bharat expects premiums from the medical
insurance segment “will make a significant contribution” to
growth.
According to Swiss Re, life insurance premium
income in the UAE stood at $1bn in 2009, while the non-life sector
recorded premium income of $5bn.
