Total insurance premiums in Arab countries reached about US$35 billion by the end of 2016 for conventional and Islamic insurance, while the annual growth in insurance premiums is estimated at around 6%, according to Dr Abdulrahman bin Abdullah Al Humaidi, Director-General of the Arab Monetary Fund (AMF).
The average economic growth rate this year for Arab economies is expected to be 2.3% as a result of lower growth among Arab oil-exporting countries, according to the Arab Monetary Fund (AMF) in its April edition of “Arab Economic Outlook Report” which includes forecasts of macroeconomic performance for the region’s countries in 2017 and 2018.
A four-pronged disruption – increasing customer expectations, regulatory changes, technological advancements and economic pressures – is expected to impact MENA insurance markets. And how individual insurers respond to these emerging challenges will define the future leaders of the business, said Mr Sanjay Jain, MENA Insurance Leader in EY’s latest report “Insurance Opportunities in the Middle East”.
GCC countries have to adopt a national resilience framework given the growing number of natural and man-made disasters around the world, according to a Booz Allen Hamilton report titled “Building National Resilience”.
While GCC countries are making moves towards capitalising on FinTech’s potential, the fragmented approach of the region’s financial markets could delay the way to a sharing, experience-based economy in the financial ecosystem, according to Saxo Markets, the institutional division of the Copenhagen-headquartered Saxo Bank Group.
With VAT set to be introduced across the GCC from 2018, businesses and governments in the region can gain valuable lessons from other markets where the digitalisation of taxation is already underway.
Agriculture mutual insurer CNMA (Caisse Nationale de Mutualité Agricole) has signed an insurance agreement with the private group Lacheb covering major investments in strategic agricultural sectors.
Trust Re’s GWP reached US$481.7 million in 2016 compared to 2015’s $475.9 million, the reinsurer said in a recent press release.
The Egyptian cabinet has approved the country’s new health insurance draft law and will submit it to the legislative committee at the State Council for legal review, said media reports.
Medical insurance premiums in Egypt rose by 12.7% to EGP1.1 billion (US$60.6 million) last year, compared to EGP976 million the previous year, according to Mr Sherif Samy, Chairman of the Egyptian Financial Supervisory Authority.
The Egyptian Financial Supervisory Authority (EFSA) has issued a supplementary guideline to insurers on the accounting treatment of foreign exchange gains or losses resulting from the floating of the Egyptian pound on 3 November last year.
The government’s big role in the economy and a lack of development in key economic sectors are the two main reasons for Iran’s low insurance penetration rate compared to those in other countries, the head of the Central Insurance of Iran has said.
Total life premiums generated in the Lebanese market reached US$504.6 million in 2016, constituting an increase of 7.1% from $471.1 million in 2015. Last year’s growth beat annual increases of 5.5% and 6.2% in 2014 and 2015, respectively, according to an annual survey by Al Bayan.
The Economy and Trade Ministry has completed a draft law that will encourage insurers to merge by providing subsidised loans.
Earnings of Morocco’s three listed insurers – Atlanta, Saham and Wafa – are expected to pick up this year, after a slight increase in 2016, according to Upline Securities in a review.
Moroccan insurer Sanad has partnered Swiss wholly online insurance broker, Helvetica Assurances, to offer its services on an online platform where insurance can be purchased and claims lodged.
Road accidents in Oman cost local insurers around US$27 million in 2016, according to official figures released by the Capital Market Authority.
Oman’s Capital Market Authority (CMA) has approved a request from local insurers for them to divest a 25% stake owned by promoters, instead of the normal 40%, in initial public offerings.
The Export Credit Guarantee Agency of Oman (ECGA) and Islamic Corporation for Insurance of Investment and Export Credit (ICIEC) have signed an agreement for foreign investment guarantees.
Al Anwar Holding said that it has sold 1.30 million shares of Falcon Insurance at OMR1.876 (US$4.87) per share. Out of the total sale proceed of OMR2.432 million, 10% will be deposited by the buyer in escrow account, which will be released after one year, according to a disclosure statement posted on the Muscat Securities Market website.
An independent study of the Palestine insurance market has confirmed that currently, there is little room for more players in the sector, said media reports citing a statement issued by the Palestinian Insurance Federation (PIF).
Qatar’s listed insurers posted profits totalling around QAR1.40 billion (US$384.5 million), 37% lower than the QAR2.23 billion reported for 2015.
Doha Insurance Company has been renamed as Doha Insurance Group following the amendment of the company’s Articles of Association after getting approval from the extraordinary general assembly meeting held in early April.
Premiums generated by listed insurers in Tunisia reached TND643 million (US$278.7 million) in 2016, an increase of 7.9% compared to 2015.
Compulsory motor third-party liability insurance is expected to be cheaper by an average of 30% from April, following a decision taken by the Undersecretariat of Treasury to cut premiums in this class of business.
In a circular distributed to employers, the UAE General Pension and Social Security Authority (GPSSA) has called for employers’ compliance with the registration and contribution requirements for their employees.
The UAE healthcare market will surge to over AED103 billion (US$28 billion) in 2021 from the current AED64 billion, driven by a shift in demand for preventive care, a rise in specialist medical services, more efficiently integrated healthcare solutions, as well as the high growth potential within specific medical device and pharmaceutical sub-sectors, said a leading research company MENA Research Partners (MRP) in a new study.
Members of the National Health Insurance Company, Daman can now use their Emirates ID to access the company’s healthcare services across the country.
Dubai-based Orient Insurance has made a payment of AED560 million (US$152.5 million) to Dubai’s largest listed developer Emaar Properties, being the final instalment towards a total insurance claim of AED1.22 billion ($332.2 million) over the fire accident at The Address Downtown hotel on 31 December 2015.
Oman Insurance Company (OIC) has launched an innovative single-premium insurance plan and targets to achieve premiums of US$40 million over the next 12 months.
The UAE Insurance Authority has asked insurers to form a technical committee made up of company representatives to study the effects of the application of VAT on their operations.
The UAE Insurance Authority (IA) has proposed establishing a fund to compensate victims hit by unidentified vehicles or drivers who do not have motor third-party liability insurance.
Global
A 14% worldwide increase in terrorist attacks in 2016 and populist nationalism are creating an increasingly volatile operating environment for international business, the 2017 Risk Maps by Aon show.
Global insured losses from disasters were US$54 billion in 2016, up from $38 billion in the previous year, the latest sigma study from the Swiss Re Institute said.
Takaful
A slowdown in growth is expected in the global takaful industry in the short term due to the tightening of regulations across all jurisdictions, particularly in the GCC, as regulators increase their focus on consumer protection and the implementation of risk-based capital (RBC), according to the Global Takaful Report 2017 released by actuarial and consulting firm Milliman at the 12th World Takaful Conference.
Shareholders of The Islamic Insurance Co (TIIC) have approved a 25% increase in the company’s share capital to JOD15 million (US$21.1 million) from JOD12 million through a bonus issue.
The Insurance Regulatory Authority (IRA) plans to draft a new set of rules governing takaful as Kenya positions itself as a regional Islamic financial hub.
Takaful contributions in Malaysia would grow by between 4% and 5% this year, following moderate growth in the insurance and takaful sectors in 2016, according to RAM Rating Services.
On the back of its five-year exclusive collaboration with agriculture-centric development financial institution (DFI), Agrobank Bhd, Takaful Ikhlas Bhd is targeting MYR211 million (US$47.9 million) in total premium contributions.
The management of Syarikat Takaful Malaysia’s (STM), the country’s biggest listed insurer in terms of market capitalisation, expects gross earned contributions (GEC) growth for family takaful to be slower this year due to increased competition, especially in the corporate medical business segment.
Takaful Oman, the Sultanate’s pioneering takaful company, will soon introduce Automated Insurance Machines (AIMs) in various malls and other popular locations across the country.
Saudi insurance per capita spending rose by 1% y-o-y to SAR1,161 (US$310) by the end of 2016, data from the Saudi Arabian Monetary Authority (SAMA) show.
The Council of Cooperative Health Insurance (CCHI) has warned that it would punish health insurers which refuse to cooperate in providing coverage to psychiatric patients in private clinics.
Gulf Union Cooperative Insurance and Al Ahlia for Cooperative Insurance are engaged in a preliminary stage of talks for a merger.
Saudi Arabia’s insurance companies have created a unified database to enable insurers to conduct background checks on the history of claimants, following the Saudi Arabian Monetary Authority’s (SAMA) decision to offer no-claim discounts on individual mandatory motor insurance for policyholders.
The UAE Insurance Authority (IA) will “soon” issue regulations on life insurance and family takaful products, according to Mr Ebrahim Obaid Al Zaabi, Director General of the IA.
Islamic insurers in the UAE are expected to turn to motor lines to boost profitability because of saturation in other classes of business, according to Badri Management Consultancy.