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Dec 2017

News


MENA

MENA: Region needs cross-border reinsurance to distribute risks

Emerging EMEA insurance markets are at different stages of development, with some open to further market liberalisation while others are moving towards greater protectionism, noted A.M. Best in its report “The Role of Protectionism in Emerging EMEA Insurance Markets”.
 


Middle East: Cross-border auto insurance demand to grow

Demand for the Orange card, a mandatory and uniform insurance policy for vehicles travelling from one Arab country to another, is expected to increase in the next three to five years, supported by Saudi Arabia’s decision to allow women to drive with effect from next June.
 


Algeria: Compagnie Centrale De RĂ©assurance to form TPA firm next year

A third-party healthcare payment company will be created in 2018, allowing customers of insurers to access care and other medical services from private care institutions without paying in advance, said Mr Mohamed Seba, Director General of Central Reinsurance Company (CCR).
 


Bahrain: Trust Re in trilateral surety bond partnership

Bahrain Islamic Bank (BisB) has become the first financial institution in Bahrain to announce a trilateral Memorandum of Understanding in the surety bond business with Takaful International, supported by Trust Re.
 


Bahrain: Arig's 9-month profits up 21% to $4.1 mln

Arig has reported consolidated net profit of US$4.1 million for the first nine months of 2017, 20.6% higher than the $3.4 million posted for the corresponding period last year. The increase in profits was backed by positive technical performance and higher investment earnings.
 


Egypt: Govt approves major traffic law reforms in 44 years

The Egyptian government has approved a long-awaited draft traffic law that is set to introduce new regulations for the issue of driving licences and heavier penalties for traffic violators.
 


Egypt: Details of proposed health insurance law unveiled

Details of Egypt’s proposed health insurance law have been released, showing that the comprehensive medical insurance scheme would be rolled out between next year and 2032.
 


Egypt: Insurers and intermediaries to form panel to study insurance market

A committee will be formed by the Insurance Federation of Egypt (IFE) with insurance intermediaries to study the needs of the market, especially with the rise in prices of goods and services which, in turn, reduces opportunities for savings.
 


Iran: Premiums surge 20% to $4.7 bln in 1H

Iranian insurers’ premiums during the first half of the current fiscal year (which started on 21 March) reached IRR166 trillion (US$4.7 billion), representing an increase of 20% compared with the corresponding period of last year.
 


Iran: Regulator plans to reduce compulsory cession ratios

The government plans to reduce the percentage of premiums Iranian insurance firms are required to cede to the Central Insurance of Iran (CII) for the purpose of reinsurance, said the head of the industry’s regulator.
 


Iran: New auto insurance rules peg premium to driving record

The insurance regulator, Central Insurance of Iran (CII), has announced new vehicle insurance regulations under which drivers’ behaviour will have a direct impact on their motor insurance rates.
 


Iran: A 2nd standalone life insurer gets licence

The High Council of Insurance has issued the licence for the establishment of Iran’s second specialised life insurance company, the President of Central Insurance of Iran (CII) has announced.
 


Lebanon: Insurance business growth remains flat in 1H

Growth in Lebanon’s insurance industry in the first half of this year was flat, with premiums rising by 1% to US$845.7 million, according to figures published by the Association of Insurance Companies in Lebanon (ACAL).
 


Morocco: Details of national disaster insurance scheme finalised

A national disaster insurance scheme will soon be implemented in Morocco. The implementing text of the law establishing the scheme for covering these risks has been finalised and submitted to the Ministry of the Economy and Finance.
 


Morocco: Proposed VAT rate hike to 20% angers intermediaries

The Moroccan government has proposed increasing the VAT rate to 20% next year from the current 14% on services provided by insurance intermediaries, a move which will increase costs in the sector by MAD210 million (US$22.3 million) a year.
 


Oman: Govt to establish fund for hit-and-run victims

The Omani government will set up a fund to help hit-and-run victims to cope with the financial burden they may face as a result of such accidents, said media reports.
 


Oman: National Life and General Insurance expands to Kuwait

Leading Omani insurer National Life and General Insurance (NLGIC) said it has received approval from Kuwaiti authorities to start branch operations in Kuwait. It is the company’s second venture outside the Sultanate after the UAE.
 


Palestine: Insurers call for pricing review

The current insurance pricing constitutes the minimum level that Palestine’s insurance market can sustain, said the head of the Palestinian Insurance Federation (PIF), pointing to the need for a new actuarial study to review current insurance prices.
 


Tunisia: Insurance law needs substantive reform

The insurance sector contributes to the Tunisian economy, but the law that regulates the sector is still rudimentary and requires substantive reform, according to Mr Hafedh Gharbi, President of the General Insurance Committee (CGA), the supervisory and control authority of the insurance sector.
 


Turkey: Insurers to lose nearly $800 mln with ceiling on motor premium

The application of a ceiling on premiums for compulsory motor third-party liability (MTPL) insurance would cause insurers to lose TRY3 billion (US$777.4 million) a year, according to a senior insurance executive.
 


UAE: Regulator to amend rules for health insurance management firms

The UAE Insurance Authority (IA) is currently preparing a draft amendment to licensing requirements for health insurance claims management companies, the UAE’s economy minister said in early November.
 


UAE: All insurance commissions will be subject to VAT in 2018

The UAE is all set to introduce value added tax (VAT) at 5% on insurance, except on life insurance and life reinsurance, with effect from 1 January 2018. However, all commissions – whatever the underlying class of business, whether VAT-exempt or otherwise – will be subject to VAT, said Mr Michael Vaughan, Senior Tax Director, Grant Thornton, an international professional services firm.
 


UAE: New rules for insurance sales centres

The Insurance Authority (IA) has issued a decree on the licensing and registering of sales centres of insurers operating in the UAE.
 


UAE: ADGM to amend prudential regime for financial institutions

The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has issued a consultation paper inviting public feedback on its proposals to revise the “Prudential – Investment, Insurance Intermediation and Banking” Rulebook (PRU). 
 


UAE: Almost all employees link being happy to productivity

Over 95% of respondents in a survey conducted across the UAE believe that if they were happier in their workplace, they would be more productive.
 


UAE: International Medical Group opens office in Dubai

International Medical Group (IMG), a leader in international private medical insurance (IPMI) and global assistance since 1990, has obtained its consultancy licence and opened an office in Dubai, demonstrating its commitment to the UAE.
 


UAE: Insurance brokers have big role in price discovery

Corporate customers tend to depend on brokers primarily for “independent” price discovery and are less influenced by the latter in insurance purchase decisions, according to a recent survey.
 


UAE: Drivers of fast cars may be underinsured

Drivers of sports cars in the UAE may be under-insured – in some cases drastically, according to an analysis from yallacompare, a Middle East comparison site.
 


UAE: Listed insurers' profits surge 50% to $319 mln in 9M 2017

The total profit generated for the first nine months of 2017 by 28 listed insurers in the UAE amounted to AED1,170 million (US$318.6 million), up 50.4% compared to the same period last year, according to an analysis by Badri Consultancy.
 


Many UAE residents still confuse health insurance with critical illness insurance

There is still a lot of confusion surrounding a standard medical insurance and a critical illness policy among the public in the UAE, according to research commissioned by Friends Provident International (FPI) to examine life insurance trends in the country.
 


UAE: Lockton launches Women in Leadership initiative to boost gender parity

Lockton, the world’s largest independently owned insurance broker, has launched its Women In Leadership (WIL) initiative for its female associates, clients and business partners in the UAE. 
 


UAE: Half of financial advisers see growth in tough times

Half of the UAE’s financial advisory firms have grown their businesses over the last year despite operating in a tougher environment characterised by rising costs and regulatory changes, according to a new report from consultancy firm Insight Discovery.
 


UAE: Orient Insurance offers new international health plans

Orient Insurance and international health and life experts at Allianz Partners have launched their new International Healthcare Plans for the Dubai market.
 


Global

Global non-life and life premiums to grow 4% and 3% in 2018/19: Swiss Re

Cyclical upswing in global economy is set to continue in 2018 and 2019, supporting insurance premium volume growth, according to Swiss Re Institute’s Global insurance review 2017, and outlook 2018/19 report. 
 


First-ever global climate risk insurance database launched

A global online database to share good practices and innovative solutions in climate risk insurance has been launched by the Global Index Insurance Facility (GIIF), the Munich Climate Insurance Initiative (MCII), and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH (German Corporation for International Cooperation).
 


Brand strength will be strongest driver of M&A deals over next three years

Almost 70% respondents in Willis Towers Watson’s M&A survey believed brand strength will be the main driver of M&A in the next three years, reflecting the transition to digital sales which requires a strong and recognisable brand.
 


Takaful

ICIEC inks MoU with Central Bank of Bangladesh to promote trade & invt

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), member of the Islamic Development Bank Group, and the Central Bank of Bangladesh have signed a Memorandum of Understanding (MoU) which aims to boost cooperation in promoting trade and investment in Bangladesh. 
 


Malaysia: New draft on Shariah governance for Islamic FIs

The Bank Negara Malaysia (BNM) has released an exposure draft aimed to enhance the existing regulatory requirements and expectations on Shariah governance for Islamic financial institutions (FIs).
 


Global

Malaysia: Takaful to be in new trade credit insurance framework

A revised trade credit insurance/takaful framework will be issued by year-end or early next year, said Mr Mohd Zabidi Md Nor, Director of Islamic banking and takaful department, Bank Negara Malaysia (BNM).
 


Takaful

Malaysia: Etiqa partners with Maxis to offer UBI plan

Etiqa, Maybank’s insurance and takaful unit, has teamed up with Maxis Bhd to offer a usage-based insurance (UBI) plan that offers greater cost savings and business efficiency for their customers.
 


Nigeria: Regulator banks on takaful to increase market penetration

Islamic insurance would solve the challenge of public apathy to insurance, arising from religious and cultural beliefs, especially in the northern parts of Nigeria, Commissioner for Insurance Mohammed Kari has said.
 


Oman: Takaful players expected to fight hard for health business

Oman’s takaful sector is likely to benefit from the new mandatory health insurance system that will be implemented with effect from next January, along with their conventional counterparts, according to a report released by S&P Global Ratings.
 


Pakistan: Regulator approves rules for Shariah advisors

The Securities and Exchange Commission of Pakistan (SECP) has approved the Shariah Advisors Regulations 2017 aimed to enhance the credibility of the Islamic financial services sector. Framed under the Companies Act 2017, the new regulations will discipline and professionalise Shariah advisory in Pakistan. 
 


Saudi Arabia: Regulator approves BSF's sale of 18.5% AzSF stake to Allianz Group

The Saudi Arabian Monetary Authority (SAMA) has issued a letter of no objection to a deal by Banque Saudi Fransi (BSF) to sell an 18.5% shareholding in Allianz Saudi Fransi (AzSF) to Allianz Group.
 


Saudi Arabia: Listed insurers post profits of $301 mln in Jan-Sep

Insurance companies listed on the Saudi stock market earned profits totalling SAR1.13 billion (US$301.3 million) during the first nine months of this year.
 


Saudi Arabia: Govt urged to grant incentives for insurance M&A

The government should provide incentives to encourage insurers in Saudi Arabia to merge, Mr Adel Abdulaziz Al-Essa, a spokesman for the insurance industry in the Kingdom, has said.
 


Sudan: International insurers studying insurance market post-sanctions

Representatives of several international insurance companies have visited Khartoum to study the situation in the Sudanese market and its prospects, following the recent lifting of US economic sanctions.
 


UK: First Shariah-compliant Warranty & Indemnity insurance policy issued

AIG UK has underwritten the first Shariah-compliant warranty and indemnity (W&I) insurance policy issued in the London M&A insurance market.