Insurance premiums underwritten up 28%
Insurance premiums underwritten up 28%
Dubai: Premiums underwritten by the UAE's insurance industry jumped 27.7 per cent in 2005 to Dh7.39 billion from Dh5.78 billion in 2004, the Ministry of Economy said on Sunday.
Growth was driven by the general insurance business, where premiums surged 30.4 per cent to Dh6.18 billion in 2005.
The life, savings and money making insurance segment contributed premiums of Dh1.21 billion, a 15.5 per cent rise over Dh1.04 billion in the previous year, the Ministry said in a report on the performance of the insurance industry in 2005.
The insurance industry's investment portfolio at the end of 2005 was estimated at Dh18.27 billion, 65.6 per cent of which was placed in shares and bonds and 26.6 per cent in deposits. Investment in land and real estate accounted for 7.9 per cent.
National companies had a share of 74.5 per cent in the general insurance business but only 24.3 per cent in the life and savings segment, it said.
The UAE has 47 insurance companies, of which 23 are national and 24, foreign. The industry also has 17 insurance agencies and 191 insurance brokers.
"The rationalisation policy adopted by the insurance companies operating in the UAE had a positive impact on the reduction of the total average of claims during 2005 as the average has dropped from 53.5 per cent during 2004 to 62.9 per cent during 2005," the report said.
The figures showed average compensations was 61.3 per cent in accidents and liability, 108.9 per cent in fire, 43.5 per cent in land, sea and air transport and 2.6 per cent in other risks.
