The Dubai Marine Insurance Conference brought attention to the UAE as a leading maritime hub.
Dubai - Industry needs to be addressed more frequently to make sure that it adapts with rapid developments
Marine insurance experts, on the closing day of the Dubai Marine Insurance Conference, have called for a regional insurance alliance to reinforce stability in the levels of insurance prices, and to retain the largest share of insurance premiums in the Gulf regionally.
The conference also witnessed the announcement of a partnership between the International Institute of Marine Surveying (IIMS) UAE branch, which celebrates its 10th anniversary this month, and Maritime Sky, which specialises in marketing and media strategy, to support the sixth IIMS biennial conference in Dubai, that brings attention to the UAE as a leading maritime hub.
"As a critical engine for the national economy, the marine insurance sector needs to be addressed more frequently to make sure that it adapts with the rapid developments of the marine industry, and the objective that has been achieved successfully by the Dubai Marine Insurance Conference," said Khamis Buamim, CEO of Gulf Navigation Holding.
"More than 90 per cent of marine insurance operations are carried out outside the region through non-local insurers, which means a significant loss of premiums, moreover the situation does not reflect the strength and reality of the national economy and active trading movement."
He also pointed out to the importance of the existence of insurance institutions or a group capable of carrying out large insurance operations to provide the national economy with insurance premiums commensurate with the size of the UAE's strong economy, which is characterised by a stable investment environment, economic and political and can continue to grow.
"Marine insurance premiums have witnessed a decline of 13 per cent due to the decline in commodity prices and the global economic recession," he said.
Buamim added that the cost of marine insurance has increased in the past as a result of piracy. Some insurance companies have raised premiums due to regional conditions, while others have proven prices as they are because the risks in the region are not high, he said.
Khaled Meftah, director of business development at the Dubai Maritime City Authority, disclosed that the total marine insurance premium in the UAE insurance market rose to a whopping Dh1.1 billion in 2017, higher by 10 per cent over the previous year.
It also represented a 3.5 per cent increase in the total property and liability insurance premiums during the same period.