The Association in its letter to the Insurance Authority, has recommended the encouragement of merger between UAE insurance companies, due to the immense deterioration in the end_ products of most insurance companies. This such decline has not been experienced by the UAE insurance market since its inception, which resulted in driving some of these companies to borrow from banks or obtaining soft loans ( Takaful Companies). It is worth noting that some of these companies have lost a major portion of their paid- up capital.
