The total volume of underwritten insurance premiums in the UAE reached Dh22 billion in 2010, a 10 per cent increase when compared with 2009, while the total invested funds in the sector rose to Dh27.6 billion, according to a report by the Insurance Authority.
In the foreword for the annual report on the UAE insurance sector, issued by the Authority, Economy Minister Sultan bin Saeed Al Mansouri said: "This report asserts the significance of this sector and its substantial role in the national economy due to the considerable funds invested there in, which amounted to Dh27.6 billion in 2010 while the underwritten premiums at the insurance market amounted to Dh22 billion."
The premiums of property and liability insurance increased from Dh16.8 billion in 2009 to Dh18 billion in 2010, under an increase rate of 7 per cent. The claim ratio increased during 2010 to 57.4 per cent while it was 48.8 per cent during 2009.
The total of the underwriting premiums for life assurance and formation of funds operations amounted to Dh4 billion
The share of the national companies in these premiums accounted for 34.2 per cent while the foreign companies share accounted for 65.8 per cent.
The total of underwritten premiums in property and liability insurance was as follows: Dh18 billion share of national companies in these premiums accounted for 77.8 per cent while the foreign companies share accounted for 22.2 per cent
The percentage of national insurance companies retention of underwriting premiums in insurance against property and liability was 53 per cent while the retention percentage for each branch was as follows: 62.3 per cent in accidents and liability branch, 37 per cent in fire branch, 27 per cent in land, sea and air transport branch, 63 per cent in medical insurance branch, 19 per cent in other risks branch. Earned premiums for property and liability accounted for Dh17.5 billion.
The total shareholders' equity of the national insurance companies amounted Dh14.1 billion.
The total invested funds amounted to Dh27.6 billion, with 48.2 per cent of this amount in the form of shares and bonds followed by 32.5 per cent as bank deposits.
The number of employees in the insurance companies operating within the UAE during 2010 reached 7,271 out of whom there are only 397 UAE nationals at a rate of 5.5 per cent.