Continental Group positive about UAE insurance market
- United Arab Emirates: Tuesday, January 22 - 2013 at 12:22
- PRESS RELEASE
Continental Group, the licensed leading insurance intermediary and financial services solutions provider, is positive about the growth of the insurance industry in UAE this year.
Ashok Sardana, Managing Director, Continental Group, said, "2012 has been our second best year as we focused on our core abilities - savings, protection and employee benefits. 2008-10 were challenging years with the downturn and the global economic climate but going forward we see a good potential given the kind of development plans in the UAE. Over the coming years not only are we going to witness the development of a significant amount of infrastructure, which will boost economic growth, but we are also witnessing a changing trend among expatriates with them staying longer. 2013 looks bullish and we are positively geared up for it."
The total premiums for Continental Group over the past months have grown over 60% with premium sizes remaining approximately the same. The overall number of policies has also increased by 25%.
A few key performance highlights for the year 2012
- Life insurance premium grew by 26%.
- Investments grew by 19%.
- General insurance grew by 37%, out of which 52% of the premium came in from motor insurance.
- Employee Benefits grew by 110%, out of which 92% of the premium came in from group medical insurance.
Continental Group is looking at expanding operations in Sri Lanka in 2013 and will be focusing on consolidating and expanding operations in the UAE.
• In the UAE the general insurance premium market continues to grow at about 8% (CAGR) according to an industry report. This includes Medical, Motor, Marine, Fire, Home Insurance etc.
• The Life Insurance business in the UAE grew around 13% in 2011. We expect to see a much higher growth rate for this year closer to the 15-18% mark.
• 85% of premium comes from non-life insurance and 15% comes from the life insurance category. While life insurance penetration in the UAE is very low compared to global averages and the general insurance trends are similar, the premium sizes are expected to increase as the economy matures and grows.
• Medical Insurance has been made mandatory in Abu Dhabi with Dubai and other emirates expected to follow soon. In addition, there is an increasing amount of interest from employers on the pensions and other retirement benefits solutions space.
The insurance industry in the UAE has benefited from the economic recovery which has had a positive impact across all lines of business. 2011 saw the business grow by over 10% and the insurance business in the UAE is expected to post a slightly higher growth rate. Insurance across the region remains underdeveloped, with penetration rates below 2% in almost all GCC countries. Regulatory regimes continue to improve, but retention remains low, Life insurance, in particular, is nascent, accounting for less than 20% of premiums.
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