UAE: Insurance executives meet to discuss ways to improve industry
Source: Middle East Insurance Review | Jun 2015
Insurance company executives and officials have proposed 10 ways for the UAE’s insurance companies to improve profits or reduce losses at a brainstorming session organised by the Insurance Authority (IA), reported Emirates Today.
The 10 suggestions are: stop price war, diversify away from investment in equities and real estate, increase awareness of insurance, diversify and improve documentation, use technology and innovate, appoint independent actuaries, review the qualifications of management executives, IA to hold management of loss-making insurers accountable, analyse financial data, and promote mergers.
Participants called for the creation of a clearing system to facilitate financial settlements between insurance companies, the establishment of a mediation mechanism to resolve disputes, and legislation to cover online insurance sales and the completion of transactions via mobile devices.
They also called for insurance personnel to be trained and qualifications to be reviewed, especially of company chief executives, and the hiring of actuaries.
Others said that one major reason for the profit slump in insurance companies was the concentration of investments in the equity and real estate markets, which witnessed corrections during the last quarter of last year.
Some industry players also urged the IA to ensure that the financial statements of insurance companies as well as their investment portfolios are analysed periodically in order to identify risk. The management of insurance companies should also be held accountable to develop strategies to turn losses around.
Participants also felt that family culture is hampering consolidation in the fragmented insurance industry and the regulator should look into how this situation can be changed.