BMI's Executive Summary for the UAE Insurance Report

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This report differs from its predecessors in that it includes BMI's Insurance Business Environment Rating (IBER). The rating brings together a number of pieces of relevant quantitative data, together with BMI's Country Risk Rating (CRR). It is now much easier to consider the business environment for the insurance sector in any one country relative to the business environment for other industries in that country that are surveyed by BMI, and the business environment for the insurance sector in other countries.

The UAE's IBER is 54.7. Relative to other countries in the Middle East and Africa, it is a moderately attractive insurance market for foreign insurers. Within the region, the UAE is notable for its high percapita GDP. The economic outlook is sound, although high inflation remains a risk. Government policies are likely to remain constant over the long term. However, the IBER is held back by the underdevelopment of the life segment and the financial infrastructure. It is also held back by the legal framework and bureaucracy.

Over the forecast period, we anticipate that non-life premiums will grow by 20% annually in local currency and in US dollar terms. Life premiums are expected to increase by 20% annually in local currency and in US dollar terms. The key drivers of growth in the non-life segment in 2007-2012 will be the anticipated rise in nominal GDP from around US$186bn to US$303bn and an expected increase in non-life penetration from 1.3% of GDP to 2.0%. The key driver of growth in the life segment is an envisaged moderate rise in life density from about US$100 per capita in 2007 to US$150 per capita in 2012. The UAE's total population is growing quickly.

The competitive landscape in both the non-life and the life segment is home to a number of cross border firms. In the case of the non-life segment, seven foreign operators offer products in the UAE. Meanwhile, in the case of the life segment, three cross border firms are operative. Of these three firms, two (AXA and AIG) also offer non-life segment lines. The UAE is characterised by a very small life segment and a somewhat larger yet still small non-life segment. For both segments, the degree of openness to foreign entrants is not great, and penetration levels are small. Key strengths of the UAE's insurance sector include low long term financial risk, high GDP per capita, good odds of policy continuation, and a reasonably amenable taxation system by regional standards.

Contents of The UAE Insurance Reports

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Chapter 1 - The Sector At A Glance

Table: UAE Insurance Sector Overview (In Millions Of Currency Specified)

Key Features Of This Report & Likely Future Changes

Chapter 2 - Latest News

Recent Developments

Chapter 3 - Evolution Since The Mid-1990s

Table: Evolution Of The UAE Insurance Sector (In Millions Of Currency Specified)

Evolution

Chapter 4 - Projections And Forecasts

Table: BMI Projections For The UAE Insurance Sector (In Millions Of Currency Specified)

Projections And Drivers Of Growth

Chapter 5 - Macroeconomic Outlook

Table: UAE Economic Indicators

Chapter 6 - Country Update

Political Risk Going Native

Economic Risk Reaping Rewards

Business Environment Financial Infrastructure Lags

Chapter 7 - Analysis Of Competitive Condition

Table: Middle East And Africa Non-Life Segment Rankings of Markets

Table: Middle East And Africa Presence Of Cross-Border Insurers Non-Life Segment

Table: Middle East And Africa Selected Local Non-Life Insurers

Country Overview UAE Life Segment

Table: Middle East And Africa Life Segment Rankings Of Markets

Table: Middle East And Africa Presence Of Cross-Border Insurers Life Segment

Table: Middle East And Africa Selected Local Life Insurers

Chapter 8 - Regional Context

Table: Middle East And Africa: Regional Context 2004 Premiums

Table: Middle East And Africa Regional Context Total Premiums 2004

Chapter 9 - Methodology And Objectives

Introduction

Background

Forecasts

Chapter 10 - Appendix

Table: Latest Estimates / Actual Figures For 2005

Table: Latest Estimates For 2010

Table: Latest Estimates For 2005-2010 (Growth In US Dollar Terms)

Competitive Landscape for The Middle East and Africa Insurance
    Reports: Sample of Companies Ranked

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A cross-border overview of key players and their insurance market share across the Middle East and Africa. Tables and graphs show country presence of multinationals across the region. Comparative company analyses and rankings by premium income (life and non-life). Company SWOTS for leading life and non-life insurers, covering network of offices, presence of foreign stakeholders, strategic relationships, joint ventures; portfolio of clients; diversity of product range; profit growth, investment strategy and risk exposure.

Network of Insurance Sources

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BMI's Middle Eastern and African Insurance Reports are based on an extensive network of multilateral organisations, government departments, insurance industry associations, chambers of commerce and company reports. Information sources include:

Read about our other Insurance Reports