Insurance premiums in the UAE are expected to rise by 10 per cent this year to Dh24 billion compared to Dh22 billion in 2010, a top official said.
Fatima Mohammad Ishaq Al Awadi, Deputy Director-General of the UAE Insurance Authority, said: "The share of local insurance companies in these premiums constitutes 77.8 per cent while foreign insurance companies' share of premiums form only 22.2 per cent."
A recent industry report showed that insurance business in the GCC is set to grow 20 per cent annually on average over the next five years to reach over $37 billion by 2015. A report also showed that the UAE and Saudi Arabia will continue to be the two largest insurance markets in the region, with a 75 per cent market share between them by 2015.
The UAE insurance sector is expected to grow at a compounded annual growth rate (CAGR) of 19 per cent to $18.3 billion by 2015 with balanced contributions from both life and non-life segments.
Life insurance penetration is expected to be around 13 per cent and that by non-life at 13 per cent. The non-life insurance density would be around $2,738.47 while that of the life is expected to be around $384.41 in 2015.
Alpen's report revealed that Qatar is forecast to be the biggest mover, with a 30 per cent compound annual growth rate over the next five years.
With regard to Islamic insurance or Takaful, despite the slowdown, the market remains promising and is expected to be a $12 billion global industry by the end of 2011, a recent Ernst & Young report showed.
Stefan Egger, Takful Emarat's deputy general manager and consultant to the board, said earlier that the regional Takaful market has been growing an average of 20 to 30 per cent over the past few years, helping it to increase market share and challenge the conventional insurance sector.