Five more global insurance firms to enter UAE market

Five more global insurance companies will be given licences to operate in the UAE soon, a top official of the Emirates Insurance Association (EIA) told Emirates Business yesterday.

Fareed Lutfi, Secretary General of the EIA, said: "They are giant international companies with strong reputations. They will be big competitors for the existing players in the market." He, however, declined to reveal their names.

The five entrants into the UAE market will for the first time take the number of foreign insurance firms in the country to more than the UAE national ones.

The number of foreign companies will go up to 29, while at present there are 28 national companies in the sector.

Lutfi also said the EIA has drawn up a draft law that sets conditions for the granting of licences to insurance firms, which include certificates from the Ministry of Economy and one from either the Insurance Authority, the EIA or the Emirates Banks Association.

The EIA has referred the draft law to specialist bodies, along with another five new draft laws drawn up over 15 years to regulate the insurance profession in the country and raise its standards to the top global levels, where huge developments have taken place, Lutfi said.

He said a law governing the activities of insurance brokers would be issued soon.

Regarding complaints by local insurance firms that the opening up of the sector and the entry of global players is pushing down prices and their profit margins, Lutfi said: "The opening of the insurance market cannot be reversed. The foreign companies are necessary for the market, as they have huge capital and expertise."