With September, there is renewed hype about business and a fresh start to ending the year with a big bang. The regional and global business scenes don’t hold out much promising hope, yet the drive is on to get the best possible on all fronts. The highlight of this last third of the year is the first-ever FAIR Conference in the GCC, where the target is to get 1,000 delegates. Despite the various political tensions and factions, it’s business as usual. Already more than 500 have signed up even before the full list of speakers has been paraded. So there is hope yet.
The region is buzzing. There is so much happening everywhere: Algeria is expecting 130,000 new brokers; Iran is exempting insurers from VAT; Kuwait is asking for a 400% increase in motor liability tariff; Morocco is working on new solvency rules; UAE foreign insurers see a steep drop in profits despite premium growth while brokers are warned to meet capital requirements; in Egypt, the first state-owned takaful operator enters; Indonesia forms a high-profile National Committee for Shariah Finance; and in Saudi Arabia, health insurers reject 25% of claims as fraud.
September, with the Monte Carlo Rendezvous, sets the tone for the renewal season, and this year, the common refrain is that in the absence of major global big losses, there is pressure on rates to go even below the current low levels. And the Middle East, with its continuing big new infrastructure projects and perceived as relatively CAT-free, is drawing more global reinsurers in search of geographical spread. But the frequent fires in skyscrapers have forced reinsurers to insist on cedants retaining a higher share of the fire risks.
Our Cover Story on reinsurance looks at the expectations on reinsurers who somehow always manage to create the rainbow for the primary insurers. Where is the magic this year?
Our Country Profile is on Oman where insurers are looking at listing to raise capital and find strategic partners to grow as the regulatory framework gets stricter with higher standards on par with international levels. The crowded market is jostling to be innovative in new business lines.
With our Takaful Rendezvous in Kuala Lumpur this month with the theme “Takaful 2.0: To Soar to Greater Heights – Making Takaful Better Fit for Purpose”, we bring you a quick look at the global takaful markets with new operators appearing in virgin markets. Our market focus is on Malaysia, still the shining star with abounding potential.
With that hunt for talent in full force, we take a step back to look at how insurers are coping with the human resources they already have with some brilliant strategic tips to arm senior managers and HR professionals with the right balance to get the best out of their staff, bearing in mind the changing landscape.
This September, we are all set to bring our 11th ME Healthcare Conference for the first time to Oman where healthcare insurance is being made compulsory. We bring you a package of stories on health, including the stress to be digitally healthy.
Get ready to set your business on a stable course with the right risk-management tools in place, especially in the online space with all those cyber threats and working on keeping the balance with sustainable profitability.
I take this opportunity to wish you all the very best for the rest of the year.
Sivam Subramaniam
Editor-in-Chief
Middle East Insurance Review