While domestic markets remain important to MENA reinsurers, they are also looking further afield for diversification in order to stabilise earnings against the uncertainties and volatility of their local markets, said A.M. Best in a new report, “Stormy Currents Emerging for MENA Reinsurers”.
After a waiting period of several months, the insurance industry is ready to officially announce the creation of a company to manage third-party healthcare payments, under the supervision of the Central Reinsurance Company (CCR).
Claims to be paid by insurers to policyholders or their beneficiaries amounted to DZD74.3 billion (US$651.5 million) at 30 June 2017, about the same as the DZD74.5 billion payable at 30 June 2016.
The insurance sector continues to face severe challenges as the number of road traffic accidents has been increasing, while insurance coverage of new cars has plunged following the government’s decision to curb the importation of vehicles last year.
India’s SBI Life is likely to open a branch in Bahrain by the end of this year, enabling the insurer to establish its first foray into the Middle East market.
Dr Mohamed Omran, Chairman of the Egyptian Financial Supervisory Authority (EFSA), has said that one of the main objectives of the regulator is to develop the insurance sector, which represents a vital part of non-banking financial services. Closer cooperation and coordination with the Insurance Federation of Egypt (IFE) is needed to increase premium volume and the insurance sector’s contribution to the economy.
The Egyptian Financial Supervisory Authority (EFSA) has approved online policies for state-owned Misr Life Insurance.
The new head of the Insurance Federation of Egypt (IFE) has endorsed an increase in the minimum capital requirement of insurers.
The Insurance Federation of Egypt (IFE) will discuss with the General Authority for Roads, Bridges and Land Transfer (GARBLT) about reviving insurance coverage for highway and train travellers, according to the new head of the insurance association.
The pharmaceutical sector in Iran faces a liquidity crisis because drugs companies are not receiving their dues from insurers, said Mr Mohammad Baqer Zia, Chairman of the Pharmaceutical Association of Iran.
Special loans may be made available to specialised life insurers in the country, said the head of the insurance regulator.
The Central Insurance of Iran (CII), the insurance regulator and the largest domestic reinsurer, has announced an agreement with France’s SCOR, under which the global reinsurer will cover catastrophe excess of loss reinsurance for Iran.
The Central Bank of Jordan and the Ministry of Industry, Trade and Supply are preparing a draft law to establish a modern framework which will enable the central bank to supervise insurance activities efficiently and competently.
Jordan is about to see an increase in the rate of non-communicable diseases, according to the World Health Organization (WHO).
The National Federation of Insurance Agents and Brokers in Morocco (FNACAM) has rejected a professional examination for brokers being organised by the Supervisory Authority of Insurance and Social Security (ACAPS) to be held early next year.
The operating margin of non-life insurers fell by 66.4% to MAD761.75 million (US$81 million) in 2016 from MAD2,267.18 million in 2015, according to the Moroccan insurance regulator, the Supervisory Authority of Insurance and Social Security (ACAPS) in its annual report.
Four insurers, out of the 19 insurers operating in the Moroccan market, account for nearly 61% of the sector’s overall turnover.
Oman Qatar Insurance Company (OQIC), a subsidiary of Qatar Insurance Company (QIC), has announced that its initial public offering (IPO) has been oversubscribed 1.4 times with strong demand from both retail and institutional investors.
Expected losses in motor mandatory third-party liability (MTPL) insurance will still exceed TRY2 billion (US$548.9 million) for the year despite steps taken by the government to improve the business, including setting up a high-risk auto insurance pool.
Tarsim, Turkey’s agricultural insurance pool, expects its premium volume to increase to TRY1.7 billion (US$466 million) by the end of the year, from TRY1.5 billion at present.
Export Credit Bank of Turkey (Türk Eximbank) has signed a cooperation agreement with South Korea’s Trade Insurance Corporation KSURE.
The Turkish government has announced that it will first establish a Central Risk Registration Office and then a national rating agency.
The UAE Insurance Authority (IA) is ready to review applications for licences for new insurers if they can provide new and additional products and services to the market, according to Mr Ebrahim Obaid Al Zaabi, Director General of the IA.
The Dubai Health Authority (DHA) has launched the first integrated electronic financial system, becoming the first government entity in Dubai to adopt the smart system which covers all external and internal financial transactions involving all suppliers dealing with DHA departments and sectors.
Abu Dhabi National Insurance Company (ADNIC), a leading regional multi-line insurance provider for corporates and individuals, has expanded into the UK market with the opening of a representative office in London, under the name ADNIC International Ltd.
Loading by brokers, poor support in premium collection and weak product and industry knowledge have been cited as the top concerns of insurers when dealing with brokers in the UAE.
Egypt’s largest insurer Misr Insurance and a new reinsurance intermediary, SHIELDS Reinsurance Brokers, have both received licences from the Dubai Financial Services Authority (DFSA) to operate in the DIFC.
UAE-based comparison site Souqalmal.com has raised US$10 million in a series B investment round. The funding will largely be used to launch new business lines, develop its platform’s technology, and invest in marketing to further raise awareness and reach more people.
Insurers in the UAE have given more attention in recent months to regulatory enforced limitations on their exposure to high-risk, high-growth, assets, such as real estate and equity capital markets.
Dubai has been ranked the second-safest city in the world in which to drive, according to an extensive study into the quality of driving internationally commissioned by Kfzteile24, an online car parts retailer in Germany.
To make life insurance solutions conveniently available to people, Oman Insurance Company (OIC) recently launched online term insurance and critical illness plans – DigiTerm and DigiCi. The portal allows individuals to buy either one of the plans or a combination of both to get a comprehensive insurance cover.
The Dubai Land Department (DLD), through its regulatory arm Real Estate Regulatory Agency (RERA), has started to take proactive and preventive measures to reduce the number of fire incidents in the emirate.
Close to 50% of UAE respondents of a survey are concerned they will be unable to pay for their family’s or own medical expenses, above their mandatory employee coverage.
Global
The Blockchain Insurance Industry Initiative B3i has expanded with 23 new members, including three companies from MENA – SAHAM Assurance, Takaful Emarat and Trust Re – which will help with B3i’s upcoming market testing programme.
A new United Nations report has underscored the importance of a “risk-informed” approach to sustainable development and called for integrating global agreements on disaster risk reduction and climate change into national socio-economic planning.
The International Association of Insurance Supervisors (IAIS) has issued an application paper on the regulation and supervision of mutuals, cooperatives and community-based organisations (MCCOs) in increasing access to insurance markets.
Takaful
The takaful sector is the only one in the Islamic financial industry to sustain double-digit growth, although this is due to the small base of takaful contributions, according to the ruler of Perak state in Malaysia, Sultan Nazrin Shah.
Etiqa, the insurance and takaful arm of Malayan Banking Bhd’s International Holdings (Maybank), has completed the acquisition of a 75% stake in Indonesian general insurer PT Asuransi Asoka Mas for IDR207.2 billion (US$15.3 million).
Bank Nizwa has hosted the signing ceremony of a MoU partnering with Takaful Oman Insurance and Al Kawthar Islamic Fund managed by “TANMIA”, to organise the Sultanate’s first roadshow that will shed light on Shariah-compliant financial tools, including banking, insurance and investment. The programme, titled “Islamic Finance Knowledge Program”, will be held across multiple governorates and is set to feature presentations by some of the most respected figures in the Islamic financial sector, panel discussions, and participation from senior Shariah-compliant scholars.
The Securities and Exchange Commission of Pakistan (SECP) has introduced draft Shariah Advisers Regulations 2017 to enhance the credibility of Islamic financial services sector.
Saudi Arabia’s central bank is preparing tougher rules for insurers as part of a drive to create a smaller number of stronger market players operating in the Kingdom, reported Reuters citing two people with direct knowledge of the matter.
SAMA is aiming to require that insurers localise 100% of sales jobs in individual insurance after the successful Saudisation of all motor claims-handling positions in the insurance sector.
Saudi Cooperative Reinsurance Co (Saudi Re) has completed the acquisition of 49.9% of the Bermuda-based Probitas Holdings (Bermuda) Limited (PHBL), according to a statement on Tadawul issued by the reinsurer.
The retention ratio in Saudi Arabia progressed to 83.6% in 2016, reflecting less reliance on reinsurance market while the claims ratio slumped to 73.6%, according to experts at law firm HFW.
All branches of the 29 insurers in Saudi Arabia which offer motor insurance will open a special section, staffed by women employees, to receive female customers, said the official spokesman for the insurance industry, Mr Adel Abdulaziz Al-Essa.
The Undersecretariat of the Treasury has announced that a new regulation, called “Procedures and Principles of Participation Insurance Business”, has been published in the Official Gazette. The regulation was gazetted on 20 September and will take effect three months after its publication.
Dubai-listed life and health takaful provider Takaful Emarat has announced a strategic long-term alliance with Bayzat, a rapidly growing UAE-based technology business that provides innovative insurance and HR solutions.