The second half of the year has come. And even with business slowing down during Ramadan and the summer holidays, political tensions are still simmering with no end in sight to the ISIS crisis and the Yemen bombardment. Not surprisingly, Aon’s latest 2015 Terrorism & Political Violence Risk Map shows that the Middle East has the largest percentage and number of countries with terrorism threats, with 12 out of 14 states affected.
Yet, not all territories are the same. Dubai, for one, still exerts a strong pull factor even in insurance, with Korean Re looking to set up an underwriting agency and New India Assurance announcing plans to open regional hub there.
Dubai will also be the venue of the MENA Insurance CEO Club’s (MICC’s) Public Forum on Insurance to salute the value of insurance to society. The Forum, which marks the fifth anniversary of the launch of the MICC as the think tank of the region’ insurance industry, will aim to take a 360-degree view of the protection insurance offers, and the gaps in coverage in the era of disruptive innovation, looking at governance, regulatory compliance and human resource management, as well as the corporate social responsibility of insurance.
Even as we continue our quest for excellence under the 2nd Middle East Insurance Industry Awards (MIIA), the stress is on insurers to innovate with the mantra: disrupt or be disrupted. As KPMG’s report at the Global Insurance Forum (GIF) in New York last month showed, 45% of 280 insurers worldwide surveyed admitted to not having a formal innovation strategy.
In the quest for excellence with the deadline over for entries for the MIIA, the region is holding up well and good. The entries have indeed been pouring in, more so in some categories than others. But on the whole, they are salutary. There are indeed many companies and people in the industry doing many exciting and interesting things, some even being world first. The Awards, with a Judging Panel of 29 leaders from the industry and independently audited by EY, will indeed add a new impetus for greater professionalism in the market. Watch this space!
Our Country Profile is on Jordan, where motor still dominates the myriad other risks that the insurers cover. Despite the lack of an independent regulator, there is a glimmer of hope from promising first-quarter results. Business makes sense.
Our Cover Story on Pensions looks at the gaps in the market for viable solutions – both conventional and takaful – despite the looming time bomb presented by the funding issue.
On takaful, we cross over to London, which is looking to build a more active role in the global takaful market and offer its centuries-old expertise. It is making headway with the formation of the International Islamic Association, but what’s next for London and how will it work with other markets to take takaful forward?
Our bumper issue also zooms in on the 42nd African Insurance Organisation (AIO) Conference in Tunis which tackled some of the key concerns in Africa where insurance was becoming more appreciated. With Africa attracting global interest, the gathering was a major watershed where many a creative player was looking for innovative solutions to the tough challenges of the day.
As we stand at the threshold of the second half, the calendar looks full, not forgetting the Golden Jubilee of the Federation of Afro-Asian Insurers and Reinsurers (FAIR) in Cairo and the Gulf Insurance Forum in Dubai. The Dubai Rendezvous, set for 16-17 November and coming after the birth of the Dubai Insurance Association, will be a defining moment in the DIFC’s hub status where Lloyd’s has set its regional presence. So will it be business as usual in the region? Or will the Middle East rise to the challenge of the coming renaissance touted at the GIF? Will Monte Carlo change the game?
I take this opportunity to wish all our Muslim readers the very best of introspection and joy for Ramadan. The best is yet to be.
Sivam Subramaniam
Editor-in-Chief, Middle East Insurance Review