UAE: Action needed to boost marine insurance business
Source: Middle East Insurance Review | Jan 2018
More should be done to increase demand for marine insurance, which is considered very important in the UAE because of its role in supporting trade, said Mr Ayman Khamis, General Manager of Sharjah Insurance Company and Chairman of the Marine Insurance Technical Committee of the Emirates Insurance Association (EIA).
He pointed out that a large proportion of marine insurance business is carried out with foreign insurers, “which means the loss of a large volume of premiums and does not reflect the strength and the reality of the local economy and active trade volume”, according to a report in Al Khaleej.
He said that there are a number of challenges faced by marine insurance in the UAE, in particular the lack of specialised technical staff, in addition to non-professional competition.
He said that price undercutting has led to unreasonably low insurance premiums and the possible future exposure of insurers to losses. The situation has forced reinsurers to impose certain prices and conditions in this class of business.
On a brighter note, he added that Expo 2020, to be held in Dubai, is a unique opportunity for the advancement and growth of marine insurance in the UAE because of the huge volume of trade expected to be generated.
He revealed that the EIA will join the International Union of Marine Insurance (IUMI) soon. This will help the EIA in terms of obtaining information on the latest developments in the international markets, sharing experience and receiving official statistics on marine insurance. M