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Corporate Scorecard – Technically Right
| March 25, 2011 by Bhaskar Raj
With the recession having taken a big toll on the insurance industry in the UAE especially by weighing down on construction and motor insurance, leading players have chalked out strategies with a view to retaining their market share. Thishas triggered a price war in the market, leaving margins under huge pressure.
“The only relief is that investments have paid us some rewards in 2010, unlike in the case of previous two years when stock markets and real estate investments have eroded much of our capital,” said chief executive of a Dubai-based insurance company.
Though many companies were able to increase their gross insurance premium revenue, a commensurate growth in the bottom-line was missing. In fact, the insurance companies were luckier this time around, as a perceptible improvement was noticed in non-technical areas of activities, especially on the investment side. While some companies were able to improve their investment income during 2010, some others were content with the fall in the investment loss during this period.
