134 million dirhams insurance claims related to the "virus" until July 2020

Insurance Authority: sufficient liquidity to pay any compensation related to "Corona"

• The insurance sector in the country has proven successful in dealing with the "Covid-19" crisis.

  Photography: Osama Abu Ghanem

• Ibrahim Obaid Al Zaabi: "The stage is an opportunity to restructure insurance companies and enter into direct alliances."

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The Director General of the Insurance Authority, Ibrahim Obaid Al Zaabi, confirmed that insurance companies have sufficient financial solvency and liquidity to pay any current or potential compensation or claims resulting from the short-term repercussions of the new Corona virus (Covid-19).

He added, in a speech he delivered during a virtual forum organized by the Authority yesterday, on anticipating the future of the insurance sector after the "Covid-19" crisis, that the value of insurance claims paid by companies related to "Corona", until last July, amounted to 134 million dirhams, stressing that The current stage is an appropriate opportunity for all insurance companies to restructure them, and enter into direct alliances, to ensure their continuity and competitiveness in the market.

Capacity and efficiency

In detail, the Director-General of the Insurance Authority, Ibrahim Al-Zaabi, said that the UAE has demonstrated its high ability and efficiency in facing the repercussions of the "Covid-19" pandemic, which has enabled it to formulate a roadmap for anticipating the future and out of this crisis with several gains that enhance its position regionally and globally.

He added that the insurance sector in the country has proven successful in dealing with the "Covid-19" crisis, as the Insurance Authority has worked to ensure the continuity of doing business at the sector level, and work to reduce the repercussions of the virus by launching incentive packages for the insurance sector, in conjunction with the beginning of the virus spread globally. .

He stressed that the activation of the emergency and crisis plan by the Authority and insurance companies contributed to limiting the repercussions of the crisis on the sector, and helped innovate new insurance products in line with the change in risks.

Pay off claims

Al-Zaabi continued: “The importance of the insurance industry as a tool for transferring risks appeared during the (Corona) crisis, through the vital role played by the insurance sector, especially the health insurance branch, as indicators show that insurance companies in the country have paid for claims related to the Corona virus, A total of 134 million dirhams until the end of July 2020. ”

He said that the results of the insurance sector operations during the crisis period showed the quality of the financial solvency of insurance companies, and the availability of the necessary liquidity to pay any potential compensation resulting from the short-term repercussions of the virus.

Systems and methods

Al-Zaabi pointed out that the crisis is imposing new systems, methods and concepts in life and business, in an attempt to adapt to the new reality, and it has also posed many challenges in all fields and sectors, including mainly in the insurance sector, which enjoys great importance, as it represents a tool to transfer risks during crises.

After "Covid-19"

Al-Zaabi added: “It may be useful to emphasize that the post-Covid-19 phase will not be the same as before it, which requires the organizations and supervisory and supervisory bodies for insurance business, developing strategies, and preparing legal and regulatory systems, and technical and operational requirements that suit The new stage ».

He stressed that this stage may be considered an appropriate opportunity for all insurance companies to restructure them and enter into direct alliances, to ensure their continuity and competitiveness in the market.

Premiums and investments

The Director General of the Insurance Authority, Ibrahim Al Zaabi, said that the insurance sector in the state plays a vital role in ensuring individuals and properties against various risks, as it continues to grow and develop, bringing the total written premiums to 44 billion dirhams, and the volume of investments to about 69 billion dirhams in 2019.

A preemptive move

The organization of the 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.

It also comes as a proactive step to discuss the challenges related to the "Corona" crisis and others, and future trends, analyze their effects, and develop innovative solutions to them.

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