134 million dirhams corona claims were paid by UAE insurance companies until July.
Ebrahim Obaid Al Zaabi, Director General of the UAE Insurance Authority, said that the indicators show that insurance companies in the country had paid claims related to the emerging coronavirus (Covid-19) worth 134 million dirhams by the end of last July 2020.
In his opening speech during the virtual forum for shaping the future of the insurance sector after the Covid-19 crisis, Al-Zaabi added that the importance of the insurance sector appeared as an instrument to transfer risks during the Coronavirus crisis, especially in the health insurance class.
He stressed that the insurance sector in the country plays a vital role in insuring individuals and properties against various risks, as it continues to grow and develop, bringing the total written premiums to (AED 44) billion and the volume of investments about (AED 69) billion until the end of the past year. He pointed out that the current stage is an appropriate opportunity for all insurance companies to restructure and enter into direct alliances to ensure their continuity and competitiveness in the market.
He stated that the United Arab Emirates has proven its high capacity and competence in facing the impacts of Corona pandemic (COVID-19). It was able to create a roadmap for shaping the future and to get through this crisis with several gains that enhance its position regionally and globally. Furthermore, the UAE insurance sector succeeded to deal with the crisis. The Insurance Authority worked to ensure the continuity of doing business at the sector level and work to reduce the repercussions, by launching a number of stimulus packages.
He also stressed that the activation of the emergency and crisis plan by the Authority and insurance companies contributed to curbing the impacts of the crisis on the sector, and helped to create new insurance products corresponding to the change in risks. Further, the results of the insurance sector operations during the period of Coronavirus crisis indicated the quality of financial solvency of insurance companies and the availability of the required liquidity to pay any potential compensation resulting from the repercussions of Coronavirus in the short term.
“At a time where this crisis imposes regimes, methods and new concepts in life and business in an attempt to cope with the new reality, they imposed great challenges in all areas and sectors, including mainly the insurance sector, as an important means of transferring risks during crises.”, said the Director General of the Insurance Authority.
Al-Zaabi stressed that organizing this virtual forum comes as an initiative by the Insurance Authority to embody the efforts of the UAE in the field of anticipating and preparing for the future, and to translate directives to face all challenges through scientific methods and advanced and modern plans. As well as discussing trends, future impacts, analyzing their effects, and developing innovative solutions to enhance the sustainability of the sector’s growth.
He emphasized that the post-COVID-19 phase will not be the same as before it. This requires from organizations and insurance regulatory and supervisory authorities to develop strategies and prepare legal and supervisory regulations and technical and operational requirements that are appropriate for the new phase.