Chairman's Statement

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Chairman's Statement

On behalf of the Board of Directors, I am pleased to present to you the Insurance House Annual Report for the financial year ended 31 December 2023.

I extend my deepest gratitude to our founders, shareholders, and the entire Insurance House team for their invaluable contributions in spearheading our strategic shift and keeping us ahead in the insurance market. Their dedication and proactive approach have been instrumental in our continued growth and success.

The UAE Insurance Industry in general, had to endure yet another challenging year that forced insurance companies to recalibrate their business strategies, fine tune pricing models and sharpen service delivery capabilities, in order to stay profitable, improve customer satisfaction and enhance shareholder value.

In addition to coping with industrywide challenges, IH Management identified material errors in the process of recording transactions which IH took immediate action to fix these accounting errors.

For the year ended 31 December 2023, IH has registered a Total Comprehensive Loss of AED 41.01 million, compared to a Total Comprehensive Loss of AED 28.35 million in the previous year. The current year’s losses were primarily sustained in the Motor business where cut-throat competition amongst insurers led to very low rates of insurance premium that was not commensurate with the underlying risk being underwritten. IH Management has already taken the necessary corrective actions to restore the health of this portfolio and expects improved results going forward.

The unhealthy price competition amongst insurance companies and the material accounting errors stated above are temporary setbacks to our growth momentum in the near term. IH has already started executing a meticulously planned Comprehensive Recovery Plan. We are confident that with continued shareholder support and the dedication of IH Management & Staff, we will bounce back stronger than before. Going forward, profits from core insurance activities will be driven by improved digital delivery capabilities, significant fine-tuning of risk underwriting techniques & pricing models and enhanced claims management processes.

With Appreciation & Gratitude

I take this opportunity to acknowledge and place on record my sincere appreciation & gratitude to:

  • our loyal customers for their continued patronage and constructive feedback;
  • the Central Bank of the UAE, the UAE Ministry of Economy, the Securities and Commodities Authority, the Abu Dhabi Department of Economic Development and the Abu Dhabi Securities Exchange for their continued guidance and valuable support;
  • our shareholders for their unwavering confidence and patience;
  • our management and staff for their commendable teamwork positive attitude, dedication to duty & untiring efforts and, their continuous passion that puts us ahead of the market;
  • fellow Board members for their pro-active guidance and valuable inputs.

We express our sincere gratitude to the Government of the UAE under the visionary leadership of His Highness Sheikh Mohamed Bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President & Prime Minister of the UAE and Ruler of Dubai, Sheikh Mansour bin Zayed Al Nahyan, Vice President of the UAE, Deputy Prime Minister and Minister of Presidential Affairs as well as Their Highnesses, the Rulers of various Emirates and Supreme Council Members for their progressive leadership.

On behalf of the Board of Directors,

 

Mohammed Abdulla Jumaa Alqubaisi

Chairman

23 April 2024




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