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Jul 2017

News


MENA

Middle East: Exciting prospects seen for life market despite slow GCC economy

The overall outlook for the life sector in the Middle East and Pakistan region remains positive, although projected economic slowdown in the GCC will drag on life insurance premium growth in the short to medium term, said Swiss Re Institute in its latest sigma report, “World Insurance in 2016”.
 


Middle East: Reinsurers push back in 1 July renewals

Property reinsurance pricing in the 1 July renewal season in the Middle East appears to be at the bottom of the cycle, according to the latest 1st View renewals report from Willis Re.
 


MENA: Food and water shortages caused by climate change may lead to more conflict

Food and water shortages in the MENA region, exacerbated by climate change, may trigger more conflict and mass migration with serious security implications for the wider world, said a draft report submitted to lawmakers from NATO’s Parliamentary Assembly who met in late May in Tbilisi, the capital city of Georgia.
 


GCC: VAT implementation poses significant challenges for insurers

Uncertainty persists as to when precisely value added tax (VAT) will be introduced in the member states of the GCC, and the process surrounding a roll-out. However, given the fiscal pressures in the region, the introduction of the tax seems inevitable and could cause short-term cash-flow issues for insurers, said A.M. Best.
 


Now Health International merges Asia and Middle East operations

International private medical insurance provider Now Health International has combined its operations in the Asia Pacific and Middle East and Africa into a single region, AMEA (Asia - excluding China, Middle East and Africa), to support the development of its global service proposition. 
 


Algeria: Industry body to take action against price undercutting

Dumping by insurers is reducing the tax base for the government, as it leads to less taxable income, according to Mr Soufi Mohamed Hakim, CEO of Macir Life Insurance.
 


Algeria: Auto insurers lose annual premiums of US$55 mln in price war

Algeria’s motor insurers are losing around DZD6 billion (US$55.4 million) in premiums each year because of a cut-throat price war, estimates Mr Hassen Khelifati, CEO of Alliance Assurances.
 


Bahrain: Digital strategies for the future of insurance to be hot topic at FAIR 2017

The 25th Conference of the Federation of Afro-Asian Insurers and Reinsurers (FAIR) to be held in October, will have dedicated sessions addressing the most riveting issues of the day facing the industry.
 


Bahrain: Trust Re's 1Q GWP up 33%

Trust Re saw its GWP grow 32.6% to US$230.8 million in the first quarter of 2017, while net profit rose 5.9% to $9.0 million compared to $8.5 million in the same period a year ago. 
 


Egypt: Life insurers decry low returns from bancassurance

Life insurers in Egypt, which are seen as the biggest beneficiaries of bancassurance, are complaining of weak yield from this distribution channel, citing red tape which limits its ability to tap growth opportunities.
 


Egypt: Insurers waiting to see impact of major diplomatic rift with Qatar

The insurance sector in Egypt is carefully watching the impact on the direct insurance and reinsurance markets following Cairo’s move to sever diplomatic relations between Egypt and Qatar.
 


Egypt: Insurers want more compulsory lines adopted

Egypt has a very small number of compulsory insurance classes, a situation which is deemed unacceptable by the Chairman of the Insurance Federation of Egypt, Mr Abd El-Raouf Kotb.
 


Egypt: Mortgage insurance for low-income sector launched

Mortgage insurance is now available to low-income householders who plan to buy their own homes under Egypt’s social housing scheme.
 


Iran: Corporate governance bylaw for insurers adopted

A bylaw on corporate governance in insurers has been approved at a recent meeting of the High Council of Insurance, said media reports citing the head of Central Insurance of Iran (CII).
 


Iran: Number of road accidents, casualties still high

Iran remains on the list of countries with a high number of casualties in road accidents. Although the figure has declined from the 28,000 some years ago there are nearly 16,000 traffic deaths annually, which is still high. There are 300,000 injuries/disabilities annually.
 


Iran: Private insurers command more than 60% of insurance market

Total premiums grew by 22.5% y-o-y to IRR277.2 trillion (US$8.5 billion) in the financial year ended 20 March 2017, with the 24 privately held insurers in Iran accounted for 62.2% of the total market share, reported the Financial Tribune, citing data from the industry regulator Central Insurance of Iran (CII).
 


Kuwait: Insurance market set to expand by 30% this year

Total premiums in Kuwait are forecast to rise by 30% in the current year on the back of growth in medical insurance.
 


Kuwait: Insurers to set health premiums for relatives of expats

Insurers will be allowed to set the premiums for health insurance policies for other relatives of expats besides their spouses and children. The relatives could be parents or siblings.
 


Lebanon: Premiums grew 5% to $433.5 mln in 1Q

The Lebanese insurance industry generated a total premiums of US$433.5 million in the first quarter of 2017, up 5% compared to the same period last year, according to the latest quarterly report by the Association of Insurance Companies in Lebanon (ACAL). Non-life business dominated the market with 75.7%, compared to 70.2% in the same period a year ago. 
 


Lebanon: Insurance & capital market regulators in cooperation pact

The Insurance Control Commission (ICC) under the Ministry of Economy and Trade has signed a memorandum of understanding with the Capital Market Authority (CMA) to ensure that certain transactions carried out by insurers, in particular financial investments, are regulated by the CMA. The MoU aims to strengthen cooperation and organisation of supervisory work between the two agencies.
 


Morocco: Mutual insurers MAMDA and MCMA increase stake in bank

The Moroccan Agriculture Mutual Insurance Company (MAMDA) and the Moroccan Central Mutual Insurance Company (MCMA) have purchased 4.75% of the shares of a major bank, BCP (Banque Centrale Populaire) for MAD2.4 billion (US$249.1 million), from the International Finance Corporation (IFC).
 


Morocco: Insurance brokers want revamped commission scheme

Insurance agents and brokers in Morocco have demanded that their decades-old remuneration system, mainly related to motor business, be updated.
 


Morocco: Health insurance to be made mandatory for self-employed

Morocco’s House of Representatives has unanimously approved in a plenary session a draft law introducing compulsory medical insurance for the self-employed and independent workers.
 


Oman: Insurers post 3% increase in 1Q premiums to $350 mln

Oman’s insurers have achieved almost 3% growth in gross direct premiums which reached OMR134.7 million (US$349.7 million) in the first quarter of 2017, against OMR131 million for the corresponding period last year.
 


Most Qatar-based insurers' ratings unaffected by political rift: S&P

The ratings on most Qatar-based insurance entities have not been immediately affected after a group of governments, including Saudi Arabia, the UAE, Bahrain, Egypt, Libya, and Yemen, moved to cut diplomatic ties, as well as trade and transport links, with Qatar, said S&P Global Ratings.
 


Qatar: Insurers' equity & property exposures are a concern in current diplomatic rift

The impact on insurers’ business profiles, as a result of the current tension between Qatar and eight countries led by Saudi Arabia and the UAE, is likely to be negligible, but of greater concern are insurers’ exposures to Qatar’s stock and real estate markets, said A.M. Best.
 


Tunisia: Insurers set up private school to offer insurance courses

The Private Insurance and Financial School (ESPAF) is opening its doors to meet the training needs of high-quality financial managers, in particular in the insurance sector.
 


Turkey: Non-life insurers' 1Q profits down 45% to $138 mln

The non-life sector in Turkey reported a combined profit of TRY485 million (US$137.5 million) in the January-to-March quarter, almost half of which or 45% was made by one insurer, Allianz, reported Insurance Gazette.
 


Turkey: Auto insurers wary of heavy losses due to premium cap

Motor insurers anticipate that they could make losses of TRY2.2 billion (US$623.9 million) this year since the authorities imposed a cap on motor third-party liability (MTPL) premiums with effect from 12 April. Losses are expected to continue in 2018 if the cap is not lifted.
 


Turkey: Insurers act against accident-prone drivers

Turkish authorities have said that they will subject drivers who are involved in more than three traffic accidents a year to a psychotechnical test, adding that those who fail to pass the test will be stripped of their driving licences.
 


UAE: Insurance Authority launches 2017-2021 strategic plan

The UAE Insurance Authority (IA) has launched its 2017-2021 strategic plan at an event in Abu Dhabi in May, coinciding with the 10th anniversary of its establishment.
 


UAE: New insurance regulations on the drawing board

New regulations, including reinsurers, are on the horizon for the UAE’s fast-growing insurance market, according to Mr Ibrahim Obaid Al Zaabi, Director General of the UAE Insurance Authority (IA).
 


UAE: Dubai launches cyber security strategy

The Dubai government has launched the Dubai Cyber Security Strategy that aims to provide integrated protection against the dangers of cyberspace, support for innovation in cyberspace and strengthen Dubai’s position as a world leader in innovation, safety and security.
 


UAE: Pilot scheme to rate auto repairs shops launched

A pilot project to classify and rate automobile workshops has been launched by the Abu Dhabi Quality and Conformity Council (QCC) in partnership with Saaed, the traffic safety and incident management service, with the goal of raising the standard of car repair services in the emirate.
 


UAE: 27 people die from tobacco-related diseases each week

Every six out of 10 Emiratis are regularly exposed to second-hand smoke, and this increases their risk of suffering from cardiovascular diseases and lung cancer by 30%, a top doctor has said.
 


UAE: Cigna starts operations as Zurich Insurance Middle East

US-based health insurer Cigna Corporation has started operations in the UAE as Zurich Insurance Middle East, following the acquisition of the general insurer in June 2017.
 


Global

Top emerging risks for re/insurance sector identified

Reduced market access, regulatory fragmentation, the return of inflation and cloud risk accumulation pose the largest challenges with the highest downside risk potential in the short term, said Swiss Re in its 2017 SONAR report.
 


Angola's Launda now most expensive cities for expats; Asian cities dominate the list

Angola’s capital city Luanda has knocked Hong Kong off as the most expensive city for expatriates, driven by cost of goods and security, according to Mercer’s 2017 Cost of Living Survey. But Asian cities continue to dominate the rankings, with five in the top 10, while Europe occupied three spots. 
 


World Bank launches first-ever pandemic bonds to combat major outbreaks

The World Bank has launched specialised bonds aimed at providing financial support to the Pandemic Emergency Financing Facility (PEF). This marks the first time that World Bank bonds are being used to finance efforts against infectious diseases, and the first time that pandemic risk in low-income countries is being transferred to the financial markets. 
 


Takaful

Global takaful contributions to remain flat in 2017-2018

The growth of gross takaful contributions was flat in 2016 compared with that of 2015, and will remain the same in 2017-2018, all other factors unchanged, said S&P Global Ratings. 
 


Bahrain: BKIC completes acquisition of 36.31% stake in Takaful International

Bahrain Kuwait Insurance Company (BKIC) and Takaful International (Takaful) have jointly announced the close of BKIC’s unconditional mandatory cash offer to acquire up to 36.31% of stake of Takaful, representing all the outstanding shares of Takaful not held by BKIC. The offer price was 95 fils for every share in Takaful. 
 


Indonesia: Takaful contributions grew by 11% in 1Q

Contributions to Islamic insurance in Indonesia grew by 11% to reach IDR3.03 trillion (US$227.5 million) in the first three months of 2017, according to data from the Financial Services Authority (OJK).
 


Morocco: Finance body highlights constraints in launching takaful

Several constraints could hamper takaful at its launch in the country, according to the Moroccan Association for Participatory Finance Professionals (AMFP). These constraints include the operating model to be adopted, limited products and limited investment options.
 


Saudi Arabia: Weqaya Insurance delisted from stock exchange

The Saudi Capital Market Authority (CMA) has announced the delisting of Weqaya Takaful Insurance and Reinsurance Company from the local bourse, Tadawul.
 


Saudi Arabia: Some insurers struggle to meet localisation deadline

Insurers are competing with one another to recruit qualified local staff after the Kingdom’s regulator directed that their administrative and customer care jobs be filled by Saudis.
 


Saudi Arabia: AXA Insurance allocates $33 mln to boost investments

AXA Cooperative Insurance has allocated SAR125 million (US$33.3 million) to boost its investments. The sum is from the total proceeds of SAR250 million raised in a rights issue, the insurer said in a statement to Tadawul.
 


Saudi Arabia: ICIEC registers steady business growth in 2016

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank Group, has registered steady growth in its insurance operations in 2016.
 


Sudan: Insurance market sees $599 mln in premiums last year

The Sudanese insurance industry has registered SDG4 billion (US$599.1 million) in terms of premiums last year, according to Mr Mohammed Musa Idris, Director of the Insurance Supervisory Authority of Sudan.
 


Tunisia: Zitouna Takaful targets to double market share to 4% by 2020

The first Islamic insurer in Tunisia, Zitouna Takaful, has posted a turnover of TND36.3 million (US$15.0 million) for a market share of 2.1% last year, and targets to chalk up TND47 million in revenue in 2017 and a market share of 4% in 2020.
 


Turkey: Government to introduce takaful legislation

Turkey is set to introduce takaful legislation to promote the development of an Islamic insurance system, as the country strives to introduce more interest-free financial instruments.
 


UAE: Orient UNB Takaful now listed on Dubai Financial Market

Orient UNB Takaful has officially listed its shares on the Dubai Financial Market (DFM) on 22 June, raising the total number of insurers listed on the bourse to 16, including six takaful operators.