Financial companies have thrived in the UAE in 2017 and one of the most successful sector of the financial industry is the insurance one. According to analysts, the insurance sector will develop a lot in the near future thanks to the large number of expats living in Dubai who did not enter any income protection plan. Our Dubai company formation agents can assist foreign investors who want to open insurance companies.
During the last few years, the UAE and especially Dubai has faced a great influx of foreign employees brought here by the company seeking specialized personnel. According to a Swiss company’s survey most of these foreigners, somewhere around 75% of them, have no protection plan against illness, incapacity and even death which is where the local insurance sector can tap in. In the case of those who have certain benefits, 72% of them receive them from the employers.
Losing partially or totally the income even for a short period of time, will mean a disruption in the day-to-day living and, according to the report, to protect themselves against this 25% of the respondents said they had private insurance policies to cover such possibilities.
Foreign enterprisers who want to tap in this business opportunity can benefit from advice from our company incorporation consultants in Dubai.
The same survey shows that the UAE insurance industry has the fastest growth rate in the whole Gulf Cooperation Council because this country is the only to have a mandatory health insurance scheme.
2017 brought a 572 million Dh to the economy, representing 0.04% of the Gross Domestic Product, with a 2% growth on a year-to-year basis. By 2022, the insurance industry is expected to grow at an average rate of 2.63%. At the end of 2022, it is projected to reach 641 million Dh because it is more likely for expatriates living here to sign a private insurance policy in order to cover certain expenses such has those related to healthcare.
For information on the insurance legislation and the requirements to start an insurance business in Dubai, please contact our local representatives.