Dubai has out grown itself. The result is that Actium family that rules Dubai would like Dubai to come on the world map. With an increasing level of expat work force and setting up of businesses has created the need for an insurance sector as well. An example is the increase in motor cars with requirement of resultant insurance for them. In addition from 01 Jan 2009 health insurance has become mandatory for all residents of Dubai. This sector has therefore taken a giant leap forward.
Thus insurance is also an aspect of Dubai growth. As per latest figures insurance is also on the upswing at about 20% on an average per year. A number of types of insurances some of which come in the mandatory category are introduced in Dubai. Among them is the health insurance and auto insurance. With a large workforce it is compulsory for companies to insure their workers as far as health is concerned. This is one field that has gained ground in Dubai. In addition it is compulsory for all cars to have compressive auto insurance to ply on Dubai roads; hence auto insurance is another sector that has expanded considerably. The other classical forms of insurance like life insurance and its mutants are also subscribed by individuals.
The government in Dubai has opened up the insurance sector to foreign players but as yet foreign companies have not entered Dubai in a big way. The insurance field in Dubai is presently run by a handful of local companies. These local companies cover all aspects of insurance like general insurance, life insurance, health insurance, credit and savings insurance, transportation and auto insurance and generally other types of insurance as well like transit passenger etc. Though health and auto insurance is on the upswing yet life insurance has blot reached to full potential. The important insurance companies operating in Dubai are Bahrain national, AXA, AIG, Gulf union, medic union, BUPA, HSBC, Allianz and many more. In fact the insurance field is getting crowded with about 25 players in the field. .
But some aspects of insurance in Dubai particularly auto and car insurance is a bit out of place. For example drivers below the age of 25 are finding it difficult to get insurance .In addition cars more than 5 to 7 years old will be difficult to get comprehensive insurance. Some policies do not insure cars off road thus an in case you use your car in the dunes you may get no insurance. However bear in mind that drinking and driving are a total taboo in Dubai. There will be no insurance paid and you will be responsible to pay money to a deceased in a accident to the tune of 200,000 dhs.This is termed as blood money and does not fit in with insurance practices worldwide. In addition boats and yachts can also be insured
Insurance in Dubai has immense potential and many global players have entered the insurance field. But all companies in Dubai will have to adapt their products to local law and conditions.