With October the buzz is on with more events, meetings and conferences in the region. Monte Carlo Rendezvous which typically spells out the mood for the renewal season has spelt out that the rates are so thin, it must bottom out as it cannot go any lower with no reprieve in sight from the investment markets.
Reinsurers have four choices: to cut expenses (and fly economy as they joke), or squeeze brokers’ and cedants’ commissions or walk away from business that cannot be justifiably written as accommodation or raise rates and risk losing the business to more aggressive innocent capacity. All options come around in cycles except that this time you hear it from the big chiefs themselves. The resilience in the reinsurance market continues to amaze the world with capital markets increasing their anchor in the world of reinsurance. RI capital today stands at US$510 billion, enough for all.
But reinsurers have to get tough to survive as their ROE has dipped. Are you ready for a tough renewal season bearing in mind there have been major losses in the market through fires, commercial and construction losses, aviation and marine, political risks motor and health too.
To be prepared for the renewal, join us at the Dubai Rendezvous 2016 with the theme: “Reinsurance as the Game Changer”. Will it change your fate? Do you know how to use reinsurance strategically? Sign up now for this unique Rendezvous that gives you the Middle East perspective of the world of reinsurance.
Our Cover Story this month as a curtain raiser to our annual Middle East Healthcare Insurance Conference is on the dream of delivering an Effective Healthcare in the gulf and all the little nitty-gritties that can go so wrong. Compulsory insurance can be a great haven for all if every actor is on board and equally proficient. But it’s so delicate that it is so easy to get it so wrong especially as there are differing interest tugging at different strings.
Our Country Profile is an upbeat account of the indomitable Egyptian spirit where despite the woes and negativities spread, the insurance industry is growing against all odds. The expectation is on reinsurers and takaful to help provide that impetus to make a 1,000 flowers and new products bloom in the market. The winning insurer to scale the pyramid will be the one with competent adaptability.
On takaful, we look at the malleability of the takaful model as a blessing and exhort it to harness this adaptability to offer a more customised approach to ensure its relevance to its broad target audience.
The world is going through tough and unpredictable times with Brexit still to be decided, lower oil prices, greater political tensions at home and abroad, and widespread terrorist and other attacks. Yet the insurance industry is walking tall in each of the region’s markets.
The MENA Insurance CEO Club (MICC), serving as the think-tank of the Middle East insurance industry, holds its 6th annual meeting this October. It will also decide on the winner of its 3rd Essay Writing Contest launched to add to the wealth of information resources in the insurance industry. Such activities can only augur great tidings for the industry.
On our part, we add to the positive vibes in the air celebrating excellence in the industry. Watch this space for the winners of the 3rd Middle East Insurance Industry Awards to be announced next month in conjunction with the 2nd Dubai Rendezvous.
I take this opportunity to wish you well in what is a very hectic but serious October. There are miles to go. But it’s worth the journey. Take every step with care.
Sivam Subramaniam
Editor-in-Chief
Middle East Insurance Review