The Emirates Insurance Association and officials in the sector expect that the profits of insurance companies would have grown by between 10% and 12% in 2020.
This is despite the decline in the volume of premiums and business in general, which is mainly related to the fall in the value of claims in the medical and auto insurance sectors as a result of COVID-19, reported Al Roeya.
Industry players explain that the movement of people witnessed restrictions for several months last year, and therefore there was less traffic on the road and fewer motor accidents. Furthermore, many people postponed non-emergency medical treatment or avoided visiting doctors or hospitals for minor health ailments.
The medical and motor sectors generally account for more than 60% of total insurance claims.
Apart from the health and motor insurance segments, the drop in business in some sectors and factories led to a decline in work-related accidents, fire incidents and other risks, thus supporting the profitability of companies.
In detail, Mr Fareed Lutfi, secretary-general of the Emirates Insurance Association, said that while there is no doubt that part of the costs of postponed surgical operations and medical treatment will be paid for by insurers at a later time, an essential part—especially associated with minor health ailments which constitute a large part of insurance claims—was foregone last year.