Insurers in most GCC countries will likely face moderate-to-high credit risk in the next 12-18 months, said Moody’s Investors Service in a recent report.
Insurers have begun to submit proposals for the revision of the Insurance Act of 2006, according to Mr Abdelhakim Hadjou, CEO of Trust Algeria Assurances & Reassurances.
The Algerian Union of Insurance and Reinsurance Companies (UAR) is close to finalising a convention to allow direct compensation to be made to motor policyholders involved in accidents, said the association’s President Brahim Djamel Kessali.
The insurance market in Bahrain is forecast to rebound, growing by 6-7% this year, with health insurance, life insurance and takaful expected to drive the growth, according to Mr Abdul Rahman Al Baker, Executive Director of Financial Institutions Supervision, Central Bank of Bahrain (CBB).
The Iranian Cabinet has approved a proposal for the minimum capital required of insurers, with higher requirements set for new companies.
Iran is seeing a 60% increase in third-party motorcycle insurance purchases since a waiver of penalties for uninsured motorcyclists was extended in early February, said Mr Ali Jabbari, the Director of the Personal Injury Indemnity Fund.
Insurers’ total premium income reached IRR229 trillion (US$7.1 billion) for the Iranian year ended 20 March 2016, representing a 75% increase compared with FY2012-13, said Mr Hassan Reza Abbasianfar, Head of the Department for Planning and Development of Central Insurance of Iran (CII).
The Iranian Cabinet has decided to keep the existing cap on compulsory reinsurance unchanged for the moment.
The Kuwaiti government is considering setting up an independent insurance supervisory agency, revealed Mr Khaled Jassim Al-Shamali, Undersecretary of Ministry of Commerce and Industry.
Kuwait’s biggest insurance group, Gulf Insurance Group (gig), said its GWP grew by 14.7% y-o-y to reach KWD213.2 million (US$697.6 million), whilst its net profit fell by 14.8% y-o-y to KWD12 million in 2016.
National reinsurer Kuwait Re has reported a 39% fall in net profit to KWD1.95 million (US$6.4 million) for the year ended 31 December 2016 from KWD3.2 million for the previous year.
Kuwait’s parliamentary health affairs committee has endorsed a report recommending mandatory health insurance for foreigners visiting the country.
Five Moroccan insurers – AXA Assurance Maroc, Marocaine Vie, Saham Assurance, Sanad Assurance and Wafa – have joined the Federation of African National Insurance Companies (FANAF).
Wafa Assurance, a leading insurer in Morocco, has achieved a net profit of MAD841 million (US$83.4 million) for 2016, an increase of 5.2% y-o-y, driven by non-life operations despite intense competition.
The Allianz Group has officially launched its Moroccan subsidiary with the goal for the latter to double its market share by 2021, and become the benchmark in the Moroccan insurance market.
Work-related accidents cause 3,000 deaths a year and injury to around 43,000, with the work health and safety situation remaining most worrying in Morocco.
Oman’s life sector reported a 213.3% growth to OMR33.4 million (US$86.8 million) in 2016, marking the fastest increase among the different classes of business, the Capital Market Authority said in a report.
Qatar Central Bank (QCB) has issued instructions on the combating money laundering and terrorism financing in the insurance sector.
Shareholders of Qatar Insurance Group have approved an increase in the company’s capital to QAR2.77 billion (US$760.8 million) from QAR2.41 billion. The approval was given at the company’s annual general meeting on 19 February.
The National Union of Insurance Agents (SNAGAT) has voiced its objection against a proposed insurance Bill that it said would pose a serious threat to the livelihood of insurance agents if passed in its current form.
The Tunisian insurance sector aims to represent 4% of GDP within the next five years, doubling its present contribution, according to Mr Lassaad Zarrouk, President of the Tunisian Federation of Insurance Companies (FTUSA).
The Turkish insurance industry employed 19,652 people in 2016, 17,551 or 89% of whom had educational qualifications at college, university and graduate levels, according to figures released by the Insurance Association of Turkey.
A law enacted in January, which allows insurers to replace damaged motor spare parts with equivalent parts instead of original spare parts, is seen as leading to lower auto insurance premiums.
UAE’s new financial regulations should, in the medium term, underpin insurers’ profitability as well as their capitalisation, asset quality and reserve adequacy, said Moody’s Investors Service in a recent report, entitled “UAE – Insurance: Regulatory overhaul is credit positive despite short-term challenges”.
The Chartered Insurance Institute (CII) has partnered the UAE Insurance Authority (IA) to boost professionalism in the country.
The UAE insurance industry is forecast to grow by around 10% this year to AED48 billion (US$13.1 billion) from AED44 billion last year, according to experts.
The introduction of compulsory health insurance in Dubai and Abu Dhabi is expected to be also implemented in the remaining five UAE emirates in the near future, leading to further premium growth.
Bahrain-headquartered Arig has received a licence from Dubai Financial Services Authority (DFSA) to operate its wholly owned new reinsurance subsidiary, Arig Insurance Management (AIM), while Bermuda-based Arch Re has launched Arch Reinsurance (Gulf) Limited (AUGL), to be based at the DIFC, subject to final approval from the DFSA.
Premiums for buildings that still have flammable cladding will cost more than newer structures that comply with the recently released UAE Fire and Life Safety Code.
An analysis of preliminary financial disclosures of UAE local insurers listed on the Abu Dhabi Securities Exchange and Dubai Financial Market shows a notable improvement in earnings, coupled with solid premium growth, said A.M. Best in a report.
The Dubai Financial Services Authority (DFSA) is enhancing its contribution to Dubai’s position as the region’s leading hub for innovation through the publication of a new FinTech consultation paper.
Oman Insurance Company (OIC) has launched an online motor insurance platform on its website, allowing customers to buy policies using smartphones or laptops.
International General Insurance Holdings (IGI) said its GWP in 2016 reached US$231.4 million, 4.5% lower than the $242.3 million posted for 2015. Net profit fell 8.3% y-o-y to $32.1 million in 2016.
The innovation gap in the insurance business is widening, and the industry is sleep walking into the fast-changing market environment, said Ms Inga Beale, Chief Executive of Lloyd’s, while delivering the international keynote address at Dubai World Insurance Congress.
Global
Total global premiums grew by 4.4% y-o-y to EUR3.65 trillion (US$3.9 trillion) in 2016, according to preliminary projections by Allianz. Of the EUR150 billion or so in additional premiums, almost EUR70 billion is attributable to China alone.
Urgent action is needed to mitigate the global fallout from rising obesity levels, according to “Globesity: Tackling the world’s obesity pandemic”, a report published by health insurance provider Aetna International.
The African Risk Capacity (ARC) has teamed up with the African Development Bank (AfDB) to help African nations strengthen their resilience to weather-related risks.
Takaful
The Islamic Development Bank (IDB) is developing a roadmap to strengthen the Arab-African trade in the next three years, said media reports.
The cooperative insurance sector in Arab countries has grown to US$33 billion, with the six GCC states accounting for 25%, or US$9 billion, according to media reports citing a senior official from the Arab Monetary Fund (AMF).
Bahrain Kuwait Insurance Company (BKIC) has signed a Memorandum of Understanding (MoU) with Bahrain Islamic Bank to purchase the latter’s entire stake in Takaful International.
Total takaful contributions in the Egyptian market amounted to EGP2.2 billion (US$122.1 million) in 2016, said Mr Sherif Samy, Chairman of the Egyptian Financial Supervisory Authority.
The Malaysian Takaful Association (MTA), the Life Insurance Association of Malaysia (LIAM) and Persatuan Insurans Am Malaysia (PIAM) – together with the Personal Data Protection Department of Malaysia (PDP Department) – have launched a Code of Practice on Personal Data Protection for the insurance and takaful industry, they announced in a joint statement.
Etiqa, the insurance and takaful arm of the Malaysian banking group Maybank, recorded a robust 34% rise in profit before tax to MYR809.7 million (US$182.0 million) thanks to a 4.3% rise in net operating income to MYR1.59 billion.
Al Madina Takaful has signed an agreement with Sharakah, an agency set up by Royal Decree to support the SME sector in Oman, to promote the development of SMEs in the Sultanate.
In the first of its kind move in the Saudi insurance sector, Sanad Cooperative Insurance (Sanad) has applied for voluntary liquidation after losing more than 50% of its capital.
The Saudi Arabian Monetary Authority (SAMA) has urged insurers to deal with accident damage assessment centres that are authorised by the Saudi Authority for Accredited Valuers (Taqeem).
Insurance claims in Saudi Arabia have surged to its highest level ever, increasing by 10% in 2016, while total premiums rose marginally by 1%.
The Saudi Arabian insurance market is likely to experience consolidation this year as lacklustre industry growth on account of a flailing economy leads to M&A, according to S&P Global Ratings.
Noor Takaful, the Shariah-compliant insurance arm of Noor Investment Group, has signed the “Dubai Declaration of Financial Institutions in the United Arab Emirates on Sustainable Finance”, confirming the takaful operator’s commitment towards adopting the best environmental and sustainable practices in its operations.