UK insurers anticipate opening up of sector

UK insurance companies are expanding their operations in the GCC in anticipation of the opening up of the sector to foreign competition and changes in the foreign shareholding rules. The region’s insurance sector is dominated by GCC companies because of strict controls over ownership. “Foreign companies have been lobbying for the opening up of the UAE and GCC insurance sector to increased foreign ownership,” analyst Fareed Lutfi told Emirates Business . “At present foreign ownership in the UAE insurance sector is limited to 25 per cent and some foreign firms want to increase their stakes to 75 per cent. “In the long run the GCC insurance sector is bound to open up to more foreign ownership. There are about 50 leading insurance firms in the UAE and the major chunk of general insurance premiums are generated by the local companies.” British insurance companies have been lobbying for greater opportunities in the region through the GCC sub-committee of the Financial Service Sector Advisory Board, part of UK Trade and Investment (UKTI), a government body set up to assist businesses. The sub-committee was formed in July 2008 and has already helped increase the presence of UK insurers in the UAE. UKTI said in a recent statement that the milestones achieved by the sub-committee included helping British risk management and insurance company, Cunningham Lindsay, set up operations in Abu Dhabi, and that other insurance companies were seriously looking to establish themselves in the region. Sir Andrew Cahn, Chief Executive Officer, UKTI, said: “The UAE market continues to open doors to British firms. The Dubai International Financial Centre’s insurance licensing system is already proving attractive to many London-based insurance operators and Abu Dhabi’s Plan 2030 offers tremendous public private partnerships.” Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here .