The United Arab Emirates (UAE) insurance market continued its trend for a third consecutive year with an overall increase in profitability along with premium growth in 2019. Based on the preliminary disclosures and audited reports of the UAE insurance companies listed on the Abu Dhabi Securities Exchange and Dubai Financial Market, the Gross Written Premium grew by 8.3% to AED 23.7 billion during 2019 following a small increase in 2018. The increase in premium was primarily due to movements between listed and non-listed insurers. Milliman’s Safder Jaffer and Asad Irshad provide more perspective in this report.
Milliman today published research on regulatory reform in the United Arab Emirates (UAE). The regulations, issued earlier this year by the Insurance Authority (IA), include a transition period of up to three years, but insurers are advised to begin transitioning immediately.
With the new guidelines, the IA has certainly raised the bar for insurance regulations in the region. We expect significant change for both conventional insurers and for Takaful companies as the new regulatory framework is enacted in the coming months and years.
Companies face a number of key changes:
• A higher level of supervision by the IA
• A need for major improvement in risk management practices, including in the framework for enterprise risk management (ERM)
• A requirement to work closely with actuaries on solvency, reserving, investments, and financial forms
For more on the framework, download this paper. You can also download the following presentations prepared earlier this year:
• “New Financial Regulations for Insurance and Takaful Insurance Companies—An Overview”
• “The Financial Regulations: A Legal Perspective”
• “Investment Risks and Asset Valuation Considerations”
• “Regulations Pertinent to the Technical Provisions”
• “Solvency and Solvency Forms for UAE Insurance Companies”
• “Impact of new UAE Insurance regulations on insurance companies’ ERM”