National General Insurance has confirmed plans to enter individual life assurance business and start offering bancassurance products through alliances with Emirates Bank and Commercial Bank of Dubai.
The ventures will be launched in a few months.
Despite manifold potential, UAE's life assurance market has only a handful of operators, including the two international majors - Eagle Star and Alico. However, many international insurers sell their products directly in the market despite not being licensed to do so.
NGI has already set up a dedicated life division and placed its reinsurance with Swiss Re. Talks are on with a few blue-chip asset management companies, both regional and international, for the funds coming in from NGI's life-related products.
"It is a competitive market, but there are many segments within the life business that have not been touched properly - mortgage, education and pensions," said Khalid Kalban, chairman of NGI.
"There is also a growing population and increasing awareness of life insurance, which would help us in our offerings."
On bancassurance, NGI has been working for nearly two years to set up the infrastructure. Apart from EB and CBD, plans are on to sell NGI's insurance products through other banks in the UAE.
Bancassurance products cannot be sold directly by a bank, but by a representative of the insurer operating from its premises.
"This helps us immensely when it comes to costs. Instead of having to operate through new branches of our own, we can penetrate the market through established bank branches," said Mohammed Al Jallaf, director.
Despite its obvious benefits, bancassurance is still a relatively untapped market in the UAE.
Meanwhile, NGI recorded a net profit of Dh8.97 million in 2002, which is a 31 per cent gain over the previous year. Gross premium income grew 33 per cent to Dh58 million, with medical insurance topping with Dh25 million. Investment income rose to Dh5.9 million.
The annual general meeting approved a dividend of seven per cent, compared with five per cent in 2001, totalling Dh4.2 million.
The company's shares did not trade yesterday.

Reported by: www.gulfnews.com
Reported on: 20.02.2003.