UAE insurance companies focused on Takaful
A study said that the UAE insurance company resources were limited, so the company couldn’t compete with multinational giants and instead need to focus on Takaful.
“The small sector operations through local companies couldn’t compete against giant multinational insurance industry around the world because local companies had access to small-scale economies and limited resources and skills necessary to become competitive internationally”, Business Monitor International (BMI) said.
BMI also said that if there was more opportunity for growth in the development of Islamic financial products, Takaful was a specific area where the UAE could lead. BMI added that the UAE insurance sector continues to grow in the midst of severe impact of the global financial crisis because this sector was supported by other forces emirates namely in the field of medicine and logistics in particular.
The exchanges data in Abu Dhabi and Dubai noted that BMI believed the biggest local players, or about 20 percent of the total premium written by national companies, or 14 percent of the total premium was the Oman Insurance Company (OIC). Then the next largest insurance company was the Abu Dhabi National Insurance Company (ADNIC) and Islamic Arab Insurance Company.
There were nine companies which providing Islamic insurance or Takaful and more than 50 companies which providing conventional insurance so that the UAE insurance market was very competitive.