The World Bank and the Arab Monetary Fund have warned that many countries in the Arab world are in a situation in which flaws have been allowed to persist in a pension system, with consequent negative effects not only on public finances but also the economy as a whole. Other countries are very likely to be in the same position soon unless appropriate reforms are implemented in time.
African Reinsurance Corporation (Africa Re) has announced that losses in the Middle East and South Africa have pushed down the company’s net profit to US$7.6 million in the first half of 2017 compared to $32.6 million for the same period last year.
New car sales in all GCC countries fell during the first quarter of 2017 by 30% compared to the corresponding period last year, according to Autodata Middle East, a provider of vehicle identification and pricing information. The firm does not forecast any car market growth until 2019 and then only a modest 5%.
Changes have been made at the head of several insurers this summer with the arrival of new CEOs, following a trend in recent years that has seen some public and private insurers re-make their management entirely.
French insurer AXA’s two units in Algeria have turned profitable after five years of operations, thanks to a targeted development strategy put in place by the company’s management, including control of expenses, while continuing to promote team development and product offerings.
The Bahraini health insurance sector saw the strongest growth last year, compared to other classes of business. Gross health premiums surged by 19% to BHD62.11 million (US$164.7 million) compared to 2015, the Central Bank of Bahrain (CBB) said in an announcement.
Premiums in the Egyptian insurance market grew by a historic rate exceeding 45% to EGP29.5 billion (US$1.7 billion) in the fiscal year ended June 2017, compared with EGP20.3 billion in the previous fiscal year.
Insurers in Egypt have formed a fund totalling US$20 million and are seeking to provide cover for nuclear plants outside the country.
Mr Alaa El Zoheiry, the new Chairman of the Insurance Federation of Egypt, has outlined 12 goals which he plans to accomplish during his term which spans the next four years.
State-owned Misr Life Insurance is considering the establishment of a medical insurance company, in which its parent company, Misr Insurance Holding Group, will have a stake.
The government is to dispose of its remaining 11% stake in Amin Reinsurance, said media reports, adding that the date for the divestiture has been set for the end of October.
The domestic insurance market in Jordan showed growth in written premiums of 4.6% to JOD315.8 million (US$445.4 million) in the first half of 2017 compared to the corresponding period last year. This growth was better than the 3.3% increase shown in 1H2016.
Kuwait Re has reported an increase of 72% in profits to KWD1.84 million (US$6.1 million) for the first half of this year, according to financial statements posted on its website.
The Insurance Supervision Commission (ICC), which is part of the Ministry of Economy and Trade, has barred some brokers from selling automobile insurance policies.
The Insurance Supervision Commission (ICC), which is part of the Ministry of Economy and Trade, has barred some brokers from selling automobile insurance policies.
The Omani insurance industry grew at a 9.6% compound annual growth rate (CAGR) during the period 2011-2016, with total premiums written hitting OMR450.2 million (US$1.2 billion) in 2016, according to a report from the Capital Market Authority.
Oman Qatar Insurance Company (OQIC) has launched its initial public offering (IPO), offering 25 million shares representing 25% of the existing total shares of the company. The offer would raise OMR4 million (US$10.4 million).
The ongoing boycott of Qatar’s economy by several countries will lead to slower economic growth and hamper fiscal and external performance as outflows of external financing are offset by drawing upon government assets, said S&P.
Takaful
MENA
The combined net profit of Tunisia’s four listed insurance entities showed a 52.8% fall to TND50.3 million (US$20.6 million) in 2016 compared to TND106.6 million in 2015, despite increases posted by two insurers, according to filings with the Tunis Stock Exchange.
The Tunisian insurance sector suffers from structural deficiencies and is undergoing a transformation, but it is not lacking in assets and its growth potential remains high.
The Turkish Competition Authority (TCA) has recently finalised an investigation into the compulsory traffic insurance sector. It found that there was no anti-competitive behaviour.
The Undersecretariat of the Treasury has announced that an insurance pool is to be established to cover medical liability.
The average premium for mandatory third party liability motor insurance (MTPL) fell by 24% from TRY864 (US$253) in March to TRY660 in July, since the implementation of a premium ceiling on 12 April, said Deputy Prime Minister in charge of the economy Mehmet Simsek.
The Insurance Authority (IA) has launched a unified electronic system to monitor the adoption of the Emiratisation strategy in the insurance sector.
UAE public listed insurers turned in strong growth in gross premiums and net profit in the first half of 2017, exceeding expectations, said S&P in a report.
Motorists in the UAE will see their vehicle insurance bills go up for the second consecutive year from January 2018 following the addition of an expected 5% value-added tax (VAT) on their motor insurance, said media reports.
Specialist credit and political risk insurance (CPRI) broker BPL Global has received a brokerage licence to undertake insurance intermediation in the DIFC.
No-claims statistics from yallacompare’s insurance comparison show that French residents of the UAE are the safest drivers in the country, with 94.4% of French drivers having made no claims in the past year. Drivers from the UK are the next safest, with 93.4% of Britons having at least a year’s no-claims on their car insurance policies.
The Abu Dhabi health authorities are planning healthcare reforms in a bid to reduce insurance costs and control medical spending.
About nine in 10 UAE residents support a family member, however, only a fraction have life insurance or adequate coverage for critical illness, according to a global survey by HSBC.
The Insurance Authority (IA) has directed insurers to provide for the cost of substitute housing in fire insurance policies which cover residential property in the event that property owners or their tenants are forced to vacate their homes due to an incident covered by the policy.
Global
In the wake of Hurricane Harvey in the US and severe monsoon flooding in India, Munich Re Board Member Torsten Jeworrek has called on the market to urgently reassess and close the “considerable” global protection gap amid reinsurance market growth prospects. The industry needs to find innovative ways, in partnership with governments to access markets, he said at this year’s Monte Carlo Rendez-vous de Septembre.
Persistent headwinds are expected to continue throughout 2017 and into 2018, with both Fitch Ratings and Moody’s saying in their reports the outlook for the global reinsurance sector will remain challenging next year.
Takaful
American International Group (AIG), advised by global law firm Norton Rose Fulbright, has placed the first Shariah-compliant insurance policy for M&A activity in the MENA region.
Global
Gross contributions of the takaful industry in Indonesia in the first half of 2017 grew by 3.46% to IDR6.16 trillion (US$467 million), compared to the corresponding six months last year, according to the Indonesian Shariah Insurance Association (AASI).
Takaful
Syarikat Takaful Malaysia Bhd Group, a unit of BIMB Holdings Bhd, posted a profit before tax and zakat of MYR131.6 million in the first six months of financial year 2017, up 13.2% from MYR116.3 million (US$27.7 million) in the same period last year, thanks to higher net wakalah fee income.
Malaysia will introduce two programmes, the first of their kind in the world, to certify professional qualifications in Islamic finance, a central bank official has said.
All classes of business will be open to takaful operators simultaneously when Islamic insurance is launched in the country, which is expected to be by next year.
Saudi Arabia has published its final VAT implementing regulations, that exempt life insurance from the tax among other provisions. General insurance services will be subject to the standard rate of VAT.
A government committee is currently studying a telematics project for usage-based motor insurance to help insurers price auto insurance.
The Saudi Arabian Monetary Authority (SAMA) has banned three insurers and four insurance agencies from issuing, renewing or selling compulsory vehicle insurance policies.
A total of 307,855 workers in the private sector were injured on the job in the past five years, 92% of whom were foreigners.
Proposed takaful regulations and a framework for Islamic insurance will be submitted to the Prime Minister soon, said Deputy Premier in charge of the economy Mr Mehmet Simsek.
Al Hilal Takaful, a wholly-owned subsidiary of Bahrain’s Ahli United Bank (AUB), has appointed Emirates NBD Asset Management to manage its three risk-graded Shariah-compliant investment strategies.