1.07 AM Friday, 29 March 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 04:57 06:11 12:27 15:53 18:37 19:51
29 March 2024

Bancassurance contributes Dh6.4bn to premiums

Published
By Waheed Abbas

Bancassurance in the UAE is witnessing massive demand and is a major contributor to the premiums earned by the insurance companies in the UAE, according to a senior industry executive.

Mohamed Iqbal Mankani, Chief Operating Officer at Dubai Islamic Insurance and Reinsurance (Aman), said bancassurance contributed nearly 40 per cent or Dh6.4 billion to the overall premiums of Dh16 billion earned by the UAE insurance companies.

Mankani was speaking at a retail banking forum recently on bancassurance – an offering of insurance products through a bank.

He said Takaful (Islamic insurance) companies are the major contributors for the growth in the UAE where the companies have a much diversified customers.

He said stiff competition among banks, conventional insurance companies and Takaful firms are forcing companies to be innovative and bringing a variety of new products to the market.

Mankani said Takaful insurers in the UAE contribute nearly 50 per cent of total premium generation.
In order to meet growing demand, he said there is not enough availability of complete information for the public about Takaful and bancassurance products and companies need to properly educate and train call centre and bank staff, design and introduce customer-friendly and easily saleable products.

He also highlighted that Malaysian and Sri Lankan markets are the most successful for Takaful products among Non-Muslims.
According to a recent study by Research and Markets, total premiums earned by UAE insurance companies are expected to jump 76 per cent to Dh33.48 billion over the next four years from Dh19 billion at the end of 2009.

It said Oman Insurance, the largest local player, makes up 14 per cent of total premiums followed by Abu Dhabi National Insurance Company and Islamic Arab Insurance Company, which are about half the size of Oman Insurance Co.