Abu Dhabi – Mubasher: The UAE's insurance sector will likely see significant growth of 15% to 20% in 2017, said Al Ain Al Ahlia Cooperative Insurance's board chairman.

The continued decline and fluctuation in oil prices have affected various economies and resulted in a notable drop in business operations and projects, Mohamed Al Badi said in a statement released Tuesday.

Competition between insurance companies has increased particularly after major losses incurred from the recent fires and accidents that have taken place, he added.

S&P Global Ratings recently said it expected the UAE's insurance companies credit positions to remain stable in 2017.

The agency kept its outlook despite the economic slowdown in the GCC region over low oil prices. It added that it expects the Dubai Health Scheme, which entered its third and final stage of implementation in 2016, alongside car insurance, to continue contributing to insurance companies' results.

The Dubai Health Scheme involved getting remaining uninsured residents to obtain medical insurance cover, and extending the deadline for getting the insurance coverage from the end of 2016 to 31 March 2017.