Dr. Al Mulla calls for opening of markets and modernization of laws in the insurance sector

Dr. Al Mulla confirmed that opening of the markets will not lead to dominance of few influential companies as the European Union has been through this process and this effect has not happened. Figures show that there are more than 5300 insurance companies in Europe.

Dr. Al Mulla stated that many firms in MENA region are small in size and retain little risks, premium therefore flow out of the region through reinsurance transitions especially in major projects. Dr. Al Mulla also indicated that the insurance market of the MENA region is small and underdeveloped. The total gross premium income of the MENA region amounts to around US 9 Billion compare to US 1.2 Trillion for the initial 15 countries of the European Union.

Finally, Dr. Al Mulla indicated the necessity to have modern laws to regulate insurance sector in region and to establish world class regulatory bodies if the insurance sector is to be developed.

Dr. Al Mulla referred to the efforts of some countries in the region to develop their insurance laws. He referred specifically to the UAE, where a new insurance law enacted and a new insurance authority is established to regulate insurance sector.

These comments came during a session titled Insurance: Securing the future in which Dr. Al Mulla participated. The session took place during the first day of the World Economic Forum in Jordon on the 18th and 19th of May 07.