It is estimated that the UAE insurance market grew just over 10 per cent in 2012.
The motor rates dropped during the year. However, as the industry took stock of its underwriting results the market witnessed corrective measures and motor rates started going up in the third and fourth quarter.
We also witnessed some medical insurers bleeding due to under pricing and the medical providers (hospitals and clinics) increasing their charges. In the medical insurance sector there appears to be a need for more concerted action by all medical insurers to rein in the medical providers. Recent fires in tower buildings have also resulted in insurers once again reassessing their rating on properties.
Regionally the economy has gained momentum once again and we are seeing increased business activities. The situation could have been even better but for the current restriction on trade with Iran following the sanctions.
As an organisation we are very positive about our growth targets for 2013.
We believe the growing confidence in the economy of the region will result in enhanced trade and construction activities in the region in general and UAE in particular.
The insurance industry will definitely grow by at least 10 to 15 per cent in 2013. We will see rates going up on motor insurance, medical and property.
Reinsurance capacity on property insurance is likely to shrink and there could be less number of insurers offering medical insurance in 2013.
Last year, our company achieved new milestones in increasing our client base, enhancing our risk management capabilities to add value to our corporate clients and finalising a new bespoke IT software and a database management system as per our plan for the year.
We have also achieved over 20 per cent growth in our business. Overall we are very happy the way our organisation has grown both in the UAE and in Oman.
There were challenges on pricing and competition in the market, however, the confidence of our customers on our professional ability to obtain qualitative and competitive insurance solutions have helped us meet this challenge and even win new customers as we increased our customer count.