Insurance companies in the UAE have sufficient financial solvency and liquidity to pay any current or potential compensation or claims resulting from the short-term repercussions of the COVID-19 pandemic, Mr Ibrahim Obaid Al-Zaabi, director general of the Insurance Authority.
In a speech he delivered during a virtual forum organised by the Authority, he revealed that COVID-19 related insurance claims paid until end-July amounted to AED134m ($36.5m), reported Emirates Today.
Mr Al-Zaabi said that the UAE insurance sector has demonstrated its high capacity and efficiency in facing the impact of the COVID-19 pandemic, which has enabled it to formulate a roadmap to anticipate the future and emerge from the crisis with several gains that enhance its position regionally and globally.
He added that the Insurance Authority has also worked to ensure the continuity of conducting business at the sector level, and to reduce the impact of the pandemic by launching incentive packages for the insurance sector.
Referring to the post-COVID-19 period, Mr Al-Zaabi said, “It may be useful to emphasise that the post-COVID-19 phase will not be the same as before the pandemic. This requires insurance organisations and supervisory bodies to develop strategies, and prepare legal and regulatory systems as well as technical and operational requirements that suit the new stage.”
He stressed that this may be an appropriate opportunity for insurance companies to restructure and enter into direct alliances, to ensure their sustainability and competitiveness in the market.