Bank insurance rebounds, achieving 16 billion dirhams after recession due to “Covid” – today 24

The Insurance Control and Social Reserve Authority reported that bank insurance activity recorded a growth of 16.5 percent in 2021, with a premium volume of 16,000 million dirhams. The authority clarified, in a document on insurance banking activity in 2021, that “after an exceptional year characterized by a slowdown in insurance banking activity, 2021 witnessed a return to growth with a growth rate of 16.5 percent”.

The authority added that the volume of installments achieved through the banking network, financial companies and micro-credit associations amounted to 16 billion dirhams, compared to 13.7 billion dirhams in 2020.

Life and capital insurance continue to dominate this activity, with a production of 15.3 billion dirhams, which represents 95.3 per cent of the collection of the banking insurance sector.

The authority indicated that with respect to the rest of the categories, composed of “support” and “physical illnesses and accidents”, its contribution remained moderate, with a participation of 4.7 percent and a premium of 746.9 million dirhams. .

The banking sector continues to be the most dynamic in the distribution of insurance products, since it contributes 16,000 million dirhams in premiums and 99.7% of the contribution to bank insurance, while finance companies and microcredit associations reach only 44 0.7 million dirhams.

Bank insurance, compared to the rest of the distribution channels, maintained its market share of 30 percent, representing the second distribution channel behind insurance brokers (32.6 percent).

The authority concluded that commissions paid as a fee for bank insurance activity amounted to AED 537.1 million, an increase of 16.3 per cent.