What a difference this March is without the Multaqa Qatar. Suddenly, after a faithful decade of being a star draw in getting the internationals to come to the region, there is no Rendezvous in Doha this March. The scene seems to have shifted to Dubai with GR once again leading the region’s march with the Dubai World Insurance Congress from 28 February to 1 March.
The region is still sizzling with opportunities and potential despite all the political tensions, challenges of depressed oil prices and increasing pockets of religious strife. The region is getting used to the oil-price roller coaster and is venturing beyond energy projects and accepting VAT as a reality. In fact, there seems to be a new burst of hope as new companies are setting up and new vistas of cooperation are opening up. Some of the old big names are also turning in very encouraging results.
Even takaful is enjoying a new lease of life in more markets. Regulations aside, innovation and distribution are still key drivers, though the synergy between the two has yet to be achieved.
Then there is world of social media where the Middle East is right up there as “social”. Going digital is a real alternative for insurers with their tech-savvy social clients. The rise of Lemonade, which some say is a takaful model minus the religious element, is another seemingly positive push factor. But at the base is still the low level of penetration of insurance which is forcing die-hearts to keep trying. Perseverance will pay one day, but only if you have deep enough pockets to wait with patience.
Old habits die hard. So our Country Profile this March is still on Qatar where this time we zero in on how insurers are urged to think out of the box to stay ahead even as they expect big public spending and infrastructure projects that come with the World Cup. Qatar is still a happening place even without Multaqa Qatar as it makes a pitch for the global stage beyond just regional dynamics.
Our Cover Story this issue is on Political Risk & Terrorism where the softening market has reached a tipping point, especially as capital from the region and internationally is still being pumped into this class of business. The increasingly complicated socio-political environment is adding more stress to the business as insurers build in more exclusion clauses with risk-management incentives and clients look for wider protection.
We also bring you a special feature on employee benefits where we tout the logic of using benefits as a valuable retention tool in the wider market where talent, especially the skilled kind, is in short supply and poaching is rampant.
With all the hype on innovation and using Big Data to make pricing and business decisions, we remind readers to tread the path of data-analyses with care and to pay attention to privacy breaches.
In the same vein, we promote the need for an industry benchmark in contract certainty and clarity of the terms in cyber-protection deals.
With spring in the air, I take this opportunity to wish our readers the very best. Be intelligent and diligent to make the hope that comes with spring a reality.
Sivam Subramaniam
Editor-in-Chief
Middle East Insurance Review