UAE: Mandatory unemployment insurance scheme expected to boost Dubai insurance's premium income
Source: Middle East Insurance Review | Jun 2023
The introduction of the involuntary loss of employment (ILOE) scheme in the UAE in 2023 is expected to continue to assist Dubai Insurance Company (DIN) in growing its top line and enhancing its market position said AM Best.
DIN is the consortium leader for the ILOE and Worker Protection Programme (WPP) schemes.
AM Best said that DIN has a track record of strong operating performance as demonstrated by an excellent five-year (2018-2022) weighted average combined ratio and return on equity of 75.7% and 12.9%, respectively (as calculated by AM Best).
In 2022, DIN reported a technical profit of AED64.8m ($17.7m), equating to a combined ratio of 84.3%. The earnings of the WPP have made a material contribution to the company’s technical results since its inception in 2018, due to a robust loss ratio and significant inward reinsurance commissions.
Overall, DIN’s portfolio maintained a strong underwriting performance in 2022, although the market remained very competitive with significant pressure on premium rates. M