NTCC SUMMER INTERNSHIP - II

An Overview and Analysis of the UAE Insurance Industry: Trends,

Challenges, and Opportunities.

SUBMITTED BY:
Israa Zaidi

COURSE:
B.A L.L. B (H)

ENROLLMENT NO.:
A40111120003

BATCH:2020-2025

UNDER THE SUPERVISION OF

Ms. Jayanthi

AMITY UNIVERSITY DUBAI

1
2
3
4
 ACKNOWLEGMENT

This paper would not have been completed without the guidance and assistance of my
professor, Ms. Jayanthi. I am grateful to my professor for supporting me from the beginning
to the end of this paper by providing knowledge and insight into the topic as well as her
approval and support for developing satisfactory work. I'd like to thank my classmates and
friends for their unwavering encouragement and support in helping me finish this paper and
for making the process more enjoyable and fun every step of the way. I'd also like to thank
Mussab Ali Al Naqbi for providing the opportunity and experience to intern at their firm. I
would also like to thank my program leader Dr. Sagee Sethu who was patient and
understanding throughout the full process, while preparing this research paper. Finally, I want
to thank Amity University, Dubai, for giving me the opportunity to write this paper and for
providing me with a medium and platform to share my thoughts and insights on this topic, as
well as for providing me with an experience outside of my comfort zone to help me grow as a
student and as a person.

5
 CONTENTS

S.n Topic Pg.no

o
1. Abstract 7

2. Methodology 8
3. Literature review: 8

4. Structure of insurance companies in the UAE 9

5. Analyzing growing market trends 16

6. Challenges and Technology 21

7. Internship Report 24

8 NTCC Report 26

6
ABSTRACT - This research paper will examine the reasons for filing for insurance in the
UAE, as well as how crucial and vital it has grown in recent years. It intends to concentrate
on the insurance industry, with a particular emphasis on car insurance claims, health
insurance and protection of estate. This study explores the key drivers of the industry's
growth, including legislative reforms, economic development, and changing demographics,
using a wide range of data sources and industry publications. The challenges that the industry
may face would be how ex-pats may gain or be harmed by these insurance policies and
schemes as well as the future of these businesses. It will shed light on the issues that the UAE
insurance business faces, such as regulatory compliance, increased competitiveness, and the
need to constantly digitize and innovate. It will also briefly cover the impact of global events,
such as COVID-19, on the insurance industry in addition to explaining the obstacles, this
paper seeks to investigate the emerging prospects, such as how the insurance industry will
attempt to fit into or build a brand-new image in the digital age, the role of technology, and
how it will make it easier and more convenient for customers and businesses. It also intends
to examine future expansion in diverse areas such as motor vehicle health, and estate. It will
also examine and make a small comparison to other Gulf countries, as well as what
challenges it may face in the near future and compare Takaful to other insurance schemes.
Using the research done in this paper, businessmen and foreign investors who are trying to
grasp and navigate the UAE insurance industry will be able to obtain valuable insights that
will assist them in their efforts.

Keywords: Insurance, Covid 19, Challenges, Technology

By Israa Zaidi

7
 METHDOLOGY

This paper's study design would be exploratory, with laws, policies, and general statistics of
people obtaining insurance and the reasons for getting insurance would be studied and
examined, along with a full analysis of what the trends and challenges of the UAE insurance
industry are. The literature review collects data from previously published papers and articles.
The study is also quantitative, in which figures and graphs from publications and reports are
studied and suitable explanation is provided as to why the amount or percentage is large or
low. It also examines statistical data, industry trends, and insurance company financial reports
to gain insights into market growth, performance, and trends. It does a comparative analysis,
comparing the UAE to other GCC countries such as Saudi Arabia and Kuwait. The
information in this research article has been referenced and cited with the permission of the
authors or organizations. All the data in this study report would be accurate, up to date, and
have trustworthy information.

LITERATURE REVIEW

Accidents, death and injuries are inevitable, and they can come in very uncertain ways. 2020
taught us that nothing is more precious than our health and wellbeing. Countless people have
lost their lives due the very strange pandemic that took place and even though things may
seem out of our hands, we can still have something to grab unto and we must have always
had a plan for the unforeseen that might come next.

The country of United Arab Emirates is introducing compulsory health insurance. The policy
started around 2014 in Dubai and Abu Dhabi, and it has been expected that many people
living in the U.A.E will have a health insurance by 2016, but U.A.E has been brewing this
idea of getting a health insurance way back in 2006 where it decided to issue mandatory
insurance to ex-patriates. Later, all company's employers were responsible for providing
insurance to their employees, and this incentive was even viewed as effective and

8
worthwhile, and the government has since enforced precise licensing and ensures high quality
of services offered by insurers.1

Since the insurance authority has been incorporated into the Central Bank of UAE, or
CBUAE, by Decretal Federal Law No. 25 of 2020, the United Arab Emirates Central Bank
has been in charge of monitoring and controlling the insurance sector.

His Highness has emphasized that the banking sector is always a crucial pillar of the UAE
economy. Sheikh Mansour bin Zayed Al Nahyan, the Chairman of the Central Bank and
Deputy Prime Minister of the United Arab Emirates, has stated that the wise leader is
determined to make decisions that can improve the performance and objectives of federal
entities by uniting their efforts do that they can accomplish the desired results with a forward-
looking vision.

The Honourable Governor of the CBUAE Abdulhamid M. Saeed Al Alahmadi had stated that
the central bank would guarantee high standards of supervision and regulation that would be
applied in all the sectors and through this they can govern the workings of payment service
providers, banks, insurance, and money exchangers.

Their goal was to establish a successful insurance industry that safeguards policyholder
interests, ensures adequate monitoring and regulation, and is distinguished by financially
stable, skilfully managed insurance market participants who uphold the highest norms of
market conduct. A developing and diverse economy would be well-served by this kind of
insurance industry.

STRUCTURE OF INSURANCE COMPANIES IN THE U.A.E

INSURANCE COMPANIES IN U.A.E

1
IvyPanda. (2020, June 28). Health Insurance in the UAE. https://ivypanda.com/essays/health-insurance-in-the-
uae/

9
 National Foreign National Takaful Insurance
Insurance Companies Companies
companies

There are tafakul insurance firms as opposed to national and international insurance
companies. Takaful, sometimes known as "Islamic insurance," is a way for companies to
lower the financial risk associated with unanticipated disasters. Takaful is viewed as a social
contract that fosters cooperation and solidarity amongst a group of people who consent to
sharing the loss or harm from a fund that they all contribute to.2

In contrast to traditional insurance, which distributes risk from the policyholder to the insurer,
takaful insurance allows participants to bear the risk jointly. Every participant makes a
payment into a Takaful fund. Subject to the Takaful terms and conditions, the participant
shall receive the claim amount in the event of a loss. One can connect with a group of risk-
averse individuals who share the same values by using takaful. The system's foundation is
built on the idea of shared responsibility and engagement, that aims to help one another cope
with the weight of sorrow.

Takaful insurance (Islamic insurance) is an essential aspect of the insurance sector, and its
growth is critical to the UAE's strategic goal of being the global hub for Islamic finance. The
UAE is a forerunner in this field, having hosted Takaful insurance since 1979.In 2010, the
UAE was the first country in the MENA area to issue a Takaful insurance regulation. The
UAE has 62 insurance firms, including 12 Takaful insurance businesses, as of 2021.Due to
mergers aimed at developing a larger Takaful insurance business and improving their
efficiency, fewer such companies would be doing Takaful business in 2022.3 There are no
restrictions for foreign National Companies, however they must apply for permission to
practice through a branch or an insurance agent.

To receive a license, the paid-up capital of the company should be more than 100 million or
the equivalent. The company should place a bank deposit of 6 million in case of practicing

2
TAKAFUL – ISLAMIC INSURANCE, https://www.howdengroup.com/my-en/cover/takaful-islamic-
insurance#:~:text=Takaful%2C%20often%20referred%20to%20as,fund%20they%20donate%20to
%20collectively., (last visited Dec 10th)
3
CENTRAL BANK OF THE U.A.E, Takaful Insurance Report 2022 3 (Part 1, 2022)

10
for getting an insurance for property and liability and 4 million the in case of practicing
personal funds insurance and funds building operations.4

Types of Insurance one can get in the U.A.E:

- Health Insurance
- Car Insurance
- Property Insurance
- Liability Insurance (personal accident insurance, employer liability insurance)

Health Insurance- As insurance in the U.A.E has been introduced alongside the banking
sector and new legislative reforms have been formed in the industry and now policy makers
have come up with a policies that covers all the people living in the U.A.E, these policies has
been proven to be efficient by the number of activities that took place in the year 2011 for an
insurance plan.5 It has been estimated that 67.2 million insurance plan activities took place in
the year of 2011 in U.A.E. 47% were accounted for consultations. 21% were for drug
descriptions, 19% were DRG’S AND 5% were, 5% were dental services and 3% were
materials.

Thus, GP visits, specialist referrals, tests, surgical procedures, maternity, and emergencies
will all be covered, per the policy. It is important to note that people falling between the ages
of 25-54 account for almost 64.15% of the population and people falling between the ages of
15-24 account for almost 12.36% of the population including both Emiratis and
expatriates.6These findings imply that examinations and crises ought to be the primary
emphasis of health insurance.

It is also important to note that circulatory system issues are the highest cause of death in the
UAE.

4
Insurance, https://u.ae/en/information-and-services/finance-and-investment/insurance, (last visited Dec 9th)
5
Atlas Magazine, Al Bayan magazine and the companies ‘financial reports, United Arab Emirates insurance
market: 2011-2012 results, Atlas Magazine (Mon, 21/07/2014), https://www.atlas-mag.net/en/article/united-
arab-emirates-2012
6
UNITED ARAB EMIRATES POPULATION STATISTICS 2023,
https://www.globalmediainsight.com/blog/uae-population-statistics/#:~:text=The%20median%20age%20is
%20approximately,million%20and%200.5%20million%20respectively., (last visited 9th Dec)

11
From gathering statistics, it must be noted the leading cause of death for both men and
women is ischemic heart disease, with a percentage of 52.3% and 20.9%,
respectively.7Ensuring that people get checked out is very much crucial to lowering the death
rate since early detection of diseases allows medical experts to treat them.

The insurance healthcare program began with employers offering insurance to employed
persons (including expats and Emiratis). Larger enterprises with more than 1000 employees
were required to provide mandated health insurance to all employees by 2014. Organizations
with 100-999 employees were to provide mandatory health insurance by 2015, while
enterprises with less than 100 employees would have health insurance by 2016.

These steps would make the policy less expensive for businesses. It is reasonable to believe
that the policy would be beneficial since it allows people to access high-quality healthcare at
a reasonable cost. Clearly, quantitative data analysis provides vital insights into policy
success. Without looking at numbers, it would be possible to examine the policy and find its
shortcomings (if any). As a result of the research of key demographic data, it is apparent that
healthcare insurance must be needed for Emirati society.

In the emirate of Dubai and Abu Dhabi having a health insurance is considered mandatory.
Dubai's mandated health insurance law assures that every resident and national has access to
healthcare services. The health insurance law in Dubai compels employers to provide a
certain level of healthcare coverage to their employees without withholding or reducing their
salary to afford the costs.8 The compulsory medical insurance for Individuals, employers,
sponsors, or healthcare professionals who disregard the law may face penalties under Dubai
law. In addition, an employer or sponsor in Dubai may face a monthly penalty of AED 500 to
AED 150,000 if they fail to offer the minimum health insurance coverage required by the
Dubai Health Authority (DHA) to their employees or those under their sponsorship.

As of 2017, experts have stated that 4.6 million people in the U.A.E have health insurance
and very few are uninsured.9 As of recently it has been stated that the UAE healthcare
insurance market is at a rapid growth and is expected to grow from 10.3 billion dollars in
7
World Health Organization Data, https://data.who.int/countries/784, (last visited on Dec 9th)

8
Dubai Health Insurance Law, 2013 § Article 8, No.11, 2013 (UAE)

9
Khaleej Times, 4.6m people have health insurance in Dubai, Khaleej Times News, Thu 21 Dec 2017, 10:26
PM, https://www.khaleejtimes.com/uae/4-6m-people-have-health-insurance-in-dubai

12
2022 to 19.6 billion dollars in 2030. 10 It must be noted that those that are exempt from
receiving insurance are investors, business owners or those who manage and own their
businesses themselves, domestic workers and employees hired on a temporary basis.11

Car Insurance – Driving is not an easy task, we must always be careful on the road but
driving on the road can be risky and accidents can happen at the most unexpected times, no
matter how safe we are. The risks w9hile being on the road – is not just on you, but to the
passengers, your vehicle and other people on the road. Therefore, every driver must carry a
car insurance with them, so that they can pay for the damages or injuries caused to others and
themselves if they are found to be liable. The damages caused for repair and recovery of the
car can be quite hefty, therefore in order to protect ourselves from these highly exorbitant
bills. Insurance is highly required.

In the UAE, every car on the road must have third party insurance 12 and failing to comply
with this law can result in a hefty fine. The penalty for driving without an insurance can range
from a fine of 500 AED and 4 black points 13 and a seven-day retention period. Insurance
providers in the UAE cover car policies and not the driver. Therefore, insurance companies
will grant insurance to anyone in the UAE who has a driver’s license.

The UAE has the 2nd largest insurance market behind Saudi Arabia. As of 2021 there are
currently 62 insurance companies. 14

Furthermore, the UAE insurance industry increased its gross written contributions by 0.5% in
2021, but penetration remains low in comparison to several OECD countries. 15 Furthermore,
many types of insurance remain optional. The largest industries in the UAE are health

10
Neha Davda, Market Research Report Healthcare Services, Summary, 2023
11
Unemployment Insurance Scheme, https://u.ae/en/information-and-services/jobs/unemployment-insurance-
scheme#:~:text=The%20scheme%20applies%20to%20all,employees%20on%20a%20temporary%20basis, ( last
visited Dec 9th)
12
INSURANCE COMPANIES AND AGENTS, 1984, § Article 3, No.9, FEDERAL LAW, 1984 (UAE)
13
View the Black Points of Traffic Violations, https://www.dubaipolice.gov.ae/wps/portal/home/opendata/fines/!
ut/p/
z0/04_Sj9CPykssy0xPLMnMz0vMAfIjo8zi_T29HQ2NvA18_V2NzQwCA_y9Ayy83Y3cTU30g1Pz9AuyHRU
BDwd0dQ!!/, (last viewed Dec10th )
14
CENTRAL BANK OF THE U.A.E, Takaful Insurance Report 2022 3 (Part 1, 2022)
15
Atlas Magazine, United Arab Emirates insurance market: 2011-2012 results, Atlas Magazine, (Wed,
12/07/2023 - 08:07), https://www.atlas-mag.net/en/category/regions-geographiques/moyen-orient/gcc-
insurance-market-2022-turnover#:~:text=The%20ranking%20by%20country%20places,now%20occupies
%20the%20second%20position.

13
insurance and automobile insurance. Many of the local providers are cooperatives that
provide takaful, or sharia-compliant insurance.

The types of car insurance available in the UAE are:

1. The most fundamental and affordable kind of insurance is Third Party Liability (TPL)
insurance. If the loss of a life, a physical injury, or property damage is caused by a third
party and involves your vehicle, you will be compensated for any damages that may be
attributed to them. However, TPL will not pay for any damages that you did to your own
vehicle. Your only choice will be TPL if your car is seven years old or older.16
2. Comprehensive Insurance covers TPL in addition to the price of replacing or repairing
your own vehicle, whether or not it was your fault. Furthermore, covered are mistaken
collisions, over turnings, fires, explosions outside the vehicle, self-ignitions, burglaries,
thefts, and violent activities by strangers. For cars up to one or two years old, agency
repair is covered, depending on the insurance. Comprehensive coverage is offered for cars
up to seven years old, depending on the vehicle and the insurance provider.17
3. Excess (Deductible): would apply to a full coverage insurance. It is the sum that, if your
accident claim is not recoverable, the insurance will deduct from the compensation that is
paid to you. The insurance policy will outline the smallest excess, which may differ for
different vehicles and insurers.
4. : Apart from the standard cover, you have a range of other options to choose from,
including:

- Individual accident protection for the driver and any passengers-

Roadside assistance or recovery from breakdowns-

Car Rental or Supplementary Insurance

- Extensive geographical coverage (e.g., Qatar and Kuwait)

- Protection off-road, among many other things

16
RSA UAE TEAM, MOTOR THIRD PARTY LIABILITY INSURANCE, 18 (Royal & Sun Alliance
Insurance, 2016)

17
COMPREHENSIVE INSURANCE, https://albuhaira.com/motor-insurance (last visited Dec 10th, 2023)

14
Property Insurance- Home insurance, commonly known as homeowner's insurance, is a type
of insurance that protects your home and its belongings against damage or loss. Due to the
surge in property prices and the hazards involved with living in an urban environment, home
insurance is becoming increasingly significant in the UAE.

In the UAE, home insurance policies might differ based on the insurer and the level of
coverage necessary. In general, homeowners’ insurance policies cover the following:

- Property damage: This insurance covers damage to your property caused by natural
catastrophes such as floods, earthquakes, storms, or fires. It can also cover damage
caused by intentional acts such as burglary, theft, or vandalism.

- Liability insurance protects you if someone is injured on your property or if you

damage someone else's property. If you are sued for damages, it may also cover your
legal bills.
- Alternative housing: If your home is rendered uninhabitable due to damage caused by
an insured occurrence, home insurance may pay the cost of alternative housing until
your home is repaired or rebuilt.18

Unlike health and car insurance, property insurance is not mandatory, but it is still seen as
one that is highly recommended so that properties could be protected from unforeseen
damages or losses.

Over the years, the UAE has earned a reputation for being a generally safe place, it is
generally resistant to floods, earthquakes, fire, and theft. These types of instances however do
take place on certain occasions, and they could very likely happen again in the future. On one
specific instance in the year 2017 the very infamous Address Hotel Downtown abruptly
caught fire and the 86- story high torch tower at the Dubai marine was damaged.19

According to a 2018 Yallacompare survey, nearly 70% of UAE residents do not have home
contents insurance, with many preferring to "take a chance" rather than insure their property.

18
AL BUHAIRA NATIONAL INSURANCE, https://albuhaira.com/home-insurance#:~:text=Home
%20insurance%20is%20not%20mandatory,floods%2C%20earthquakes%2C%20or%20storms., (last visited Dec
10th)
19
Nicola Slawson and agencies, Flames engulf 86-storey residential tower in Dubai, THE GUARDIAN,( Fri 4
Aug 2017 05.09), https://www.theguardian.com/world/2017/aug/03/flames-engulf-86-storey-residential-tower-
in-dubai

15
"When compared to the overall insurance market in the UAE, the home insurance market is
relatively small," explains Jonathan Rawling, chief financial officer of Yallacompare. The
same survey that was conducted also said that 35% of people did not find a reason to get a
home insurance at all.20 Another reason is that under home policies – tenants would benefit
from alternative accommodation cover – where they would receive a certain amount of
payment if the current place that they live in becomes unhabitable.

ANALYSIS THE GROWING MARKET TRENDS

Looking at the scope of the three most asked for insurances in the UAE. We see that the
highest demand and obligation by the UAE government states that health and car insurance is
the insurance that most people seek after. Property insurance is not really that requested or
asked for by many people. The rise of health insurance in the country of UAE is not that
surprising, after the covid 19 pandemic people are realising the risks involved when we lose a
loved one so suddenly.

The Covid 19 pandemic has had a significant impact in the economy, it affected the ability of
an individual to travel, trade and have proper working arrangements and consumption of
materials have also been impacted by the pandemic.

On 11th March 2020 WHO (World health organisation) declared the coronavirus outbreak as
a pandemic that spread across the globe. The coronavirus significantly affected the GCC
region not limited to but including the United Arab Emirates. As businesses in the UAE till
today are stills struggling to grow or retain its position, the insurance industry manged to see
a growth in the year of 2020, showing how resilient and outlasting the UAE insurance
industry can be. 21

In response to the covid 19 many people went for vaccinations for the virus and there was an
increase in public health offerings for wellness for employees who were returning to the
working environment. All these services combine will increase the health care costs and will
form the backbone for health insurance pricing. Other changes that the insurance industry

20
Time Out Editors, Moving to Dubai: Sorting out your home insurance, TIMEOUT, (May 5, 2020),
https://www.timeoutdubai.com/moving-to-dubai/422710-moving-to-dubai-sorting-out-your-home-
insurance#:~:text=It%20might%20come%20as%20a,rather%20than%20insure%20their%20home.
21
Shma Consulting, Insurance Industry United Arab Emirates Q 3 2021, POWERPOINT PRESENTATION,
(31ST Dec, 2021,2:10), https://shmaconsulting.com/wp-content/uploads/2022/01/SHMA-Insurance-Industry-
UAE-Q3-2021.pdf

16
will face is the disruption of sale targets, increase in claims and charges in underwriting
policies and procedures. 22

Even before the Covid 19 Pandemic made individuals more aware of the need to obtain
insurance, the UAE insurance market was continuously growing. For nearly ten years, the
United Arab Emirates remained the second-largest insurance market in the Gulf, and in terms
of gross written premium, it ranked 37th in the world in 2017–2018. The UAE is home to a
sizable expat population, a robust economy, and strong demographics. Perhaps most
significantly, in contrast to most other regions, the UAE mandated health and car insurance,
and combining all these factors, along with the reorganization of the legal structure that UAE
has introduced, were the primary drivers to the growth of the insurance market. According to
reports, Expo 2020 will help the insurance sector even more.

Due to its vital role in supporting the national economy, the insurance industry is one of the
most active in the United Arab Emirates, as seen by the 3% growth rate in its GDP
contribution in 2018. In the United Arab Emirates, 2.9% of people overall had insurance in
2018. At USD 1,194.7 billion, the nation has the highest insurance concentration among GCC
nations. One of the main causes of this development was the establishment of uniformly high
vehicle insurance prices.

The average percentage of GCC markets with penetration of insurance is 2.9% in the UAE,
1.9% in Bahrain, 1.6% in Qatar, 1.4% in Oman, and 1.2% in Saudi Arabia. With a 0.9%
average insurance penetration in 2018, Kuwait had the lowest rate. The main causes of low
penetration include an inexperienced life insurance market and a lack of awareness regarding
the need for insurance products. Moreover, financial aid provided to local residents makes
insurance ineffective for that segment of the population. Among the GCC countries, the
United Arab Emirates has the highest rate of insurance penetration because of its diversified
population, which is mainly made up of expatriates, and because it has put in place the
necessary health and car insurance systems.23

22
Shma Consulting, Insurance Industry United Arab Emirates Q 3 2021, POWERPOINT PRESENTATION,
(31ST Dec, 2021,2:10), https://shmaconsulting.com/wp-content/uploads/2022/01/SHMA-Insurance-Industry-
UAE-Q3-2021.pdf

23
UAE Property & Casualty Insurance Market Insights.
https://www.mordorintelligence.com/industry-reports/property-casualty-insurance-market-in-united-arab-
emirates (last visited dec 10th, 2023)

17
Source: Mordor Intelligence

Among the most advanced in the GCC, the UAE's regulatory framework is becoming
stronger with the adoption of worldwide standards. It is mandatory to get automobile
coverage in the United Arab Emirates.

It is anticipated that non-life business lines, such property and fire insurance, would grow in
importance as risk coverage grows in popularity and the government, through Vision 2021,
emphasizes infrastructure development more.

In 2023 – the U.A.E Health and Medical Insurance Market size is estimated to be at 9.35
billion Dollars and the expectation is that by 2028, it would reach 16.76 billion dollars.24

The UAE's regional authorities have made significant improvements to regulatory monitoring
in recent years to increase flexibility and discipline while simultaneously encouraging
consolidation. Long-term, such reforms are anticipated to improve insurers' credit profiles
and asset quality, while also making the insurance market more transparent, competitive,
efficient, and sustainable. Insurance companies in the UAE may face further margin pressure

24
UAE Property & Casualty Insurance Market Insights.
https://www.mordorintelligence.com/industry-reports/property-casualty-insurance-market-in-united-arab-
emirates (last visited dec 10th, 2023)

18
because of rising VAT rates in the region and the costs associated with being compliance
with new laws.

There are now more national insurance businesses than there are foreign national ones.
Compared to foreign national enterprises, the national companies' gross written premium is
increasing at a faster pace. .25 The UAE has a diverse spectrum of government-funded and
fast developing private healthcare industries that provide healthcare to the population. The
share of health insurance provided by national firms is expanding because of the mandated
health insurance plan. Even government programs like Saada, Thika, and others are
propelling national insurance.

When it comes to takaful companies – they saw an increase of 20.3% in their insurance
revenue in 2023 in comparison to the 16.3% increase if their traditional players. 26

Source: Milliman

25
UAE Property & Casualty Insurance Market Insights.
https://www.mordorintelligence.com/industry-reports/property-casualty-insurance-market-in-united-arab-
emirates (last visited dec 10th, 2023)

26
MILLIMAN, UAE Insurance Industry Update HY1 202, UAE Insurance Industry Report, ( Oct 30th 2023,
11:56), https://www.milliman.com/-/media/milliman/pdfs/2023-articles/10-30-23_uae-insurance-industry-
report-final-hy-2023.ashx

19
Ten of the 26 businesses had better net earnings than in HY1 2022. As they did in HY1 2022,
Orient Insurance Company, Abu Dhabi National Insurance Company (ADNIC), and Sukoon
Insurance Company led the UAE's insurance industry in terms of overall profitability in the
first half of 2023.

Personal accident, group, and individual health insurance are the three categories of health
insurance. Group health insurance is by far the most popular type of health insurance that
businesses choose, and it appears to be dominating the market. In the present year, it has
contributed almost 95% of the economy because it serves associations and organizations that
jointly provide insurance for all their employees, it is by far the most appreciated.
Additionally, it results in a variety of plans with features including premium structures,
deductions, and benefits that give people more options to suit their requirements and are
generally less expensive than individual health insurance.

CHALLENGES AND TECHNOLOGY

The UAE and all over the GCC. Medical insurance in the market has grown oversupplied
with too many insurers throughout the past ten years. There are more than 35 insurers on the
market, and they all have various goals, both short- and long-term. Due to the current
business constraints and the fragmented landscape, the market is finally reaching a point
when market consolidation is unavoidable.

A plethora of mergers and acquisitions are now taking place in the insurance sector in the
region. It is only to be expected that smaller firms, lacking the global experience and
flexibility to respond quickly to changes in the market and regulations, will be forced out of
the market as regulations mature and tighten. To maintain the long-term viability and
affordability of the health insurance system, major regional and international insurers will
have increasing market influence.

20
Other developed markets have experienced this problem. For example, the four largest
medical insurers in the UK own a combined 94% of the market. These significant players are
in a good position to develop the private healthcare industry, guaranteeing its long-term
viability and affordability.27

This is a good illustration of an overlooked market, where insurers may truly make a
difference and contribute to the affordability, sustainability, and high standard of treatment
provided by the private healthcare system.

As the GCC's healthcare industry grows, there's a growing push to encourage private
investment by pushing the use of public-private partnership (PPP) models. Numerous factors
contribute to a favourable 28outcome for healthcare spending, one of which is the widespread
implementation of mandatory health insurance, which is expected to fortify the industry by
enhancing accessibility and consumption. Particularly in Dubai and Abu Dhabi, the
privatization of clinics, hospitals, and mandated health insurance is expected to stimulate
spending and lead to a more integrated health system between insurers and providers.

However, small and medium-sized businesses (SMEs) also incur higher operating costs
because of the law of mandated health insurance. With 42% of all jobs in the country and
95% of all businesses, the SME sector is the main driver of the UAE's economic growth. 40%
of Dubai's economy and 60% of the UAE's economy are attributed to SMEs as a sector. 29 In
an unstable business environment, small and medium-sized enterprises (SMEs) more
attracted and would prefer to choose only the basic local coverage for their staff members
and employees and if they need an insurance at a higher level, they can do on their own and
they would cut down their own expenses . Nonetheless, one of the main issues facing
companies in the post-pandemic era is talent risk. 30

27
Editorial Team of Middle East Insurance Review. (2009, April 1). Country Study: 2008 Review of the Middle
East and North Africa (MENA) Insurance Markets. Asia-Pacific Journal of Risk and Insurance, 3(2).
https://doi.org/10.2202/2153-3792.1043

28
Richard Stolz, Healthcare 2.0: What’s Next for The Region’s Healthcare Sector? PRESSREADER, (23 rd Dec
2019), https://www.pressreader.com/uae/forbes-middle-east/20191223/281805695836430
29
THE UNITED ARAB EMIRATES' GOVERNMENT PORTAL,
https://u.ae/en/information-and-services/business/crowdfunding/the-impact-of-smes-on-the-uae-economy ( last
visited dec 11th )
30
MEDICAL TOURISM, https://www.medicaltourism.com/destinations/dubai, (last visited dec 11th)

21
SMEs should consider various health insurance tiers if they want to draw in and keep talent.
This could depend on factors including seniority, duration of employment, and particular
requirements. By keeping employees, providing individualized health insurance coverage
yields long-term returns on investment.

2020's events have demonstrated that having health insurance is insufficient to keep
individuals safe in an emergency. In addition to local travel, political issues, and security
concerns, customers want access to professional guidance and counselling on healthcare
needs. People live, work, and travel in connected parts of the world where political and
security conditions are subject to sudden changes.

People and businesses are becoming more and more dependent on 24-hour security and travel
guidance to enable them to make well-informed decisions, especially when it comes to
medical tourism. Furthermore, due to regional variations in healthcare standards, there is an
increasing need for customers to have access to unbiased counsel and direction from
specialists in a given area in order to make well-informed decisions regarding their treatment
plan.

The UAE has seen a steady increase in inbound medical tourism as more people travel there
for treatment that ranges from extensive surgery to rehabilitation to cosmetic alterations.
Dubai and Abu Dhabi were placed sixth and eighth, respectively, as the top medical tourism
destinations worldwide in the most recent Medical Tourism Index Ranking. A thriving
hospitality ecosystem comprising a multitude of attractions, hotels, entertainment venues,
top-notch aviation services, and efficient transit logistics has solidified the United Arab
Emirates’ standing as a top destination for medical tourism.

Technology and digital health have grown rapidly because of the COVID-19 epidemic. The
region's insurance companies are focusing on telehealth as a service to give quicker, less
expensive, and easier access to care. Without a doubt, telemedicine has shown to be a crucial
instrument in maintaining access to healthcare during the epidemic.

Apart from their convenience, telehealth services are also reasonably priced; obtaining
medical advice through a telehealth service does not result in a higher utilization of an
insurance coverage. Implementing a telehealth service will probably result in fewer long-
term increases in insurance costs.

22
More digitization is anticipated to disrupt the healthcare industry, just like it does every other
industry. It is anticipated that new healthcare models centred on remote monitoring and
consultation would surface. The government healthcare services in the United Arab Emirates
are already incorporating telehealth.

Technology and simultaneously the adoption of artificial intelligence in the insurance

industry necessitate a dramatic change in organizational procedures and culture. The task of
managing change becomes extremely difficult when staff members must adjust to new
responsibilities, processes, and systems. Adoption may be constrained by reluctance to
change, anxiety about losing one's career, and ignorance about the potential advantages of
artificial intelligence. To create a supportive and cooperative atmosphere for using AI
technology, insurers need to give top priority to change management techniques that
incorporate training, communication, and employee involvement across all levels.31

INTERNSHIP WEEKLY REPORT

1st Week- July 11- July 21st

As soon as we arrived at Mussab Ali Al Naqbi, we were assigned to Ms. Sree Lakshmi
Veliyat, the office's legal researcher, who assigned us the responsibility of examining the
company's case files and providing a brief report on all of them. We were introduced to the
entire staff and office by the HR department, including the senior lawyers and advocates. The
employees and staff were extremely welcoming and courteous to us, making us feel at ease
and comfortable. We were given four case files, and we spent the rest of the week going over
the contents of those files.

I started reading the first case, which was between an individual and a car sales enterprise, in
which the client discovered that the automobile was not in excellent condition and had been
tuned and modified, and he was unable to seek warranty, so he filed a case against that very
enterprise. The second case was between an individual and car repairing workshop, where

31
Ghurani, R., Challenges Of Implementing AI In Insurance In The UAE | PETRA INSURANCE BROKERS
(2023, May 27).https://www.insurewithpetra.com/blog/the-challenges-of-implementing-artificial-intelligence-
in-insurance-in-the-uae/

23
they had replaced certain parts of the car and the car broke down and overheated and that day
the engine failed, which is why she filed a suit against the enterprise. The third case was
between an employee and an employer, where the employee had filed a case for unlawful
termination. The case analysis was approved by our legal researcher, and we even asked
doubts and queries regarding matters of the case.

2nd week – July 24th – July 28th

I started reading the fourth case file, which was about fraud done against the client when she
sought to work in Poland, Europe. She had used an employment agency and had taken money
from her. They did not, however, answer to her query back and forth. We had a few doubts
and questions regarding the case, so we had consulted one of the lawyers to help us with our
queries. During this week, we were asked by a Russian client to research a few topics about
inheritance and estate, and the next day we were asked to conduct research on German
legislation surrounding alimony and child support.

3rd week – July 31st – August 4th

We analyzed a case in which they had applied arbitration laws. It was between two
companies, a Saudi company and a Singaporean company and we had to draft a statement of
claim and defense from the Saudi Company. That week itself we were asked to give a brief
statement on the different types of laws the firm practices as they were developing a website,
and they wanted the brief statements to be put into their website.

4th week – August 7th – August 11th

We ended the week with drafting a legal notice to ask the respondent to pay an outstanding
debt of almost 200,000 AED. We analyzed the facts of the case by looking at statements and
emails and were able to form a legal notice. As we were leaving the firm Mr. Ibrahim
Khaleel, the senior legal consultant of the firm and the entire staff greeted us with the final
farewell.

24
 NTCC WEEKLY REPORT

1st week - The first two cases on car claims and warranty inspired me to research on car
insurances and claims which lead to also including all insurances available in the UAE and
that inspired me to study and research on how and why insurance is needed in the UAE to
protect us from unforeseen damages. I then sent my topic for approval to Dr. Sagee Sethu,
and my assigned faculty was chosen as Ms. Jayanthi.

2nd week – As my topic was approved, we were told to prepare an abstract of our topic and I
had sent my abstract to Dr. Sagee Sethu and as she approved my abstract, I started working
on my NTCC and took the guidance and assistance of Ms. Jayanthi.

3rd week – I then compiled all my research work which includes reports, articles, websites and
papers and formed a research methodology. I understood the importance and laws on why
insurance is needed in the country, then I researched on the types of insurance.

25
4th week – I started preparing my first draft, formed a structure, inserted my research work,
organized it and gave an in-depth analysis and overview of the insurance industry and I was
almost ready to submit the final draft.

5th week - I had finally completed my final draft, looked for plagiarism, inserted the
remaining citations and was ready to submit my NTCC.

26