2018 has raced upon us bringing tremendous changes to the market and putting to bed an otherwise nightmarish year with the third-highest insured losses for disasters haunting the world since sigma records were started. Hence, everyone believes that 2018 must be better.
There are new heroes set to make a bigger impact for the year in the region though most are concerned with the dynamic regulatory changes taking place. While most believe that it can only be for the better, there are yet many who just “stand and start” or “resist the tide” thinking that the good old days must come back. There is no going back. The time has come where regulators are even beginning to look at risk-based supervision and beyond. In the UAE, all eyes are on the new reinsurance draft regulations that could lead to a standalone reinsurance regime.
Our Cover Story is on regaining growth momentum with a stress on the basic of exploiting technology to innovate and redefine distribution, delivery and service. We also make a call to build the life sector, offering tips on how to succeed in the life business with the basic rule of engaging customers in the rollout of products to match their needs and being social media savvy.
But with this comes the worry of cyber exposures, threats and attacks. Are insurers doing enough to help clients meet the need for cyber protection? Equally, there is the moan that corporates are not willing to spend enough on cyber protection though with greater use of technology, cyber is a daily threat.
Then there is the VAT. 2018 starts with a bang as VAT comes into force in the two largest markets of the region – Saudi Arabia and the UAE. And VAT brings with it a whole plethora of compliance at the nitty gritty levels, and insurers must invest in systems and processes to ensure that they get it right from Day One. The excitement is palpable, and we bring you practical tips to ease in the transition.
The Country Profile is on Saudi Arabia undergoing radical transformation on all fronts. There is a call for the private sector to rise to the challenge with a vision with immediate action. Many believe that the Saudi market offers great opportunities for insurers beyond just the healthcare market. However, there are many who are afraid of standing tall preferring to wait and see.
On takaful, we exhort operators to provide a greater duty of care than conventional insurers to propagate the right values when marketing takaful products. We also bring you a good read on the stumbling blocks in growing the takaful business in the era of disruptive innovation with the search for a takaful model that uses technology to boost efficiency and enhance underwriting.
It is still the New Year period. So let me end with a positive note knowing that the region is still attracting investors and big players. May the good times roll so that new records are broken in the industry. And in 2018, get ready for the biennial GAIF Conference to be held in Hammamet in Tunisia this June.
Sivam Subramaniam
Editor-in-Chief
Middle East Insurance Review