There will be a slight pick-up in GDP growth of close to 2% in 2018 for the GCC as a whole, said Moody’s Investors Service in a report. While this will mark an improvement from GDP stagnation in 2017, aggregate growth will remain well below the average 5% per year seen between 2010 and 2015, given flat production in the hydrocarbon sector and a slow recovery in non-oil growth.
The impact from the introduction of VAT will be different across GCC countries, and it will have the biggest boost on government revenues in the UAE, given its larger consumer base and the importance of retail spending, especially from overseas visitors, according to BMI Research, a Fitch Group company.
The life unit of AXA Algerie has increased its capital to DZD2,250 million (US$19.6 million) from DZD1,250 million.
The insurance industry in Bahrain is projected to grow at an annual average of 7.3% from US$0.74 billion in 2016 to $1.05 billion in 2021, according to Alpen Capital.
The Egyptian Cabinet has decided to form a committee headed by Deputy Minister of Finance Dr Mohamed Moait to study insurance for state assets.
AROPE Egypt for Properties & Liabilities has raised its capital by 60% to EGP160 million (US$9 million) from EGP100 million, said local media reports, adding that the increase comes ahead of an anticipated amendment to the Egyptian insurance law.
Iran Insurance Company (IIC), the biggest state-owned insurer that will soon become the only government-run insurer after the state’s shares of other companies are sold, is to establish a specialised life insurance operation.
The adoption of a natural disaster insurance fund is currently on the agenda and Central Insurance of Iran (CII), the industry regulator, is awaiting approval for the fund from the government.
The Iranian Privatisation Company has announced the dates on which government shares in three insurance companies are to be divested to the private sector. The government stands to collect a total of IRR2,125 billion (US$57.9 million) from the sales.
Iranian insurers are to compensate 30% of the costs of an Iranian oil tanker involved in a collision in early January in the East China Sea, according to the Central Insurance of Iran (CII) in a statement on its official website.
Insurers should be allowed to increase motor premium rates and have the right to price annual premiums for compulsory motor third party liability insurance themselves, said Mr Maher Al-Hussein, Secretary General of the Jordan Insurance Federation (JOIF).
The insurance sector in Kuwait is expected to reach US$1.7 billion in 2021, registering a CAGR of 9.0% from 2016. At 1.01%, the country’s penetration rate is the lowest in the GCC, and its insurance sector is likely to experience strong growth in both the life and non-life segments, according to Alpen Capital in a report released recently.
Draft changes to Kuwait’s insurance law provide for the minimum capital of a life or non-life insurer to be KWD10 million (US$33.3 million), double the current required minimum of KWD5 million.
The Insurance Control Commission (ICC), attached to the Ministry of Economy and Trade, has announced its intention to amend regulations that govern the sale of insurance products by banks to tighten supervision over bancassurance. The process will be taken in coordination with the Bank of Lebanon.
The lack of insurance is one of the constraints that can hinder the development of the Moroccan aquaculture sector, which is exposed to risks related to climatic hazards, according to a joint study by government agencies.
Morocco has adopted a more flexible exchange rate regime, where the dirham is allowed to fluctuate within a wider range of ± 2.5%. The move is expected to lead to greater risk awareness and the use of credit insurance.
Oman Reinsurance, the Sultanate’s sole home-grown reinsurer, has added event cancellation reinsurance protection to its slate of products starting this year, following the official launch of its agriculture insurance in the country in October 2017.
Dhofar Insurance has announced that it had received a letter from the Capital Market Authority (CMA) instructing the company to suspend some activities effective from January 2018 until its solvency margin deficit is resolved.
Qatar Re, the reinsurance arm of the Qatar Insurance group, has been authorised by the Prudential Regulation Authority to carry out certain regulated activities in the UK from its branch office in London.
Qatar Insurance Group (QIC Group) has reported premium growth of 18.5% to US$3.2 billion for the financial year ended 31 December 2017, compared to 2016.
South Sudan has officially joined the African Trade and Insurance Agency (ATI), becoming the 14th member of the multilateral financial institution which provides export credit insurance, political risk insurance, investment insurance and other financial products to member states.
The Tunisian Reinsurance Company (Tunis Re) has posted a 2.5% increase in turnover to TND116.3 million (US$48.4 million) in 2017, compared to 2016, according to indicative figures released by the reinsurer.
Compulsory motor third-party liability insurance premiums have increased by 5% since 1 January 2018.
The profit growth of the UAE insurance industry is expected to have been significant last year because of a decline in the number of major accidents, especially from fire, according to the Emirates Insurance Association (EIA).
The UAE Federal Transport Authority (FTA) – Land and Maritime has issued a circular requiring all UAE-flagged ships trading internationally and all ships over 200 gross tonnes operating in UAE waters to have a contract of insurance to cover seafarers in event of abandonment, death or injury.
The UAE Ministerial Development Council has reviewed the National Strategy for Health Research to promote scientific research necessary to address the health concerns in the society, as well as a number of initiatives and reports on its agenda.
Dozens of companies and vehicle registration offices in the various emirates operate unlicensed motor insurance brokers or agents, accounting for 5% of the business.
Global
Business interruption (BI) (#1 with 42% of responses / #1 in 2017) and cyber incidents (#2 with 40% of responses, up from #3 in 2017) are this year’s top business risks globally, according to the Allianz Risk Barometer 2018.
Scientists have found a novel strain of the inherited bacteria Wolbachia which can block transmission of dengue and Zika virus among infected mosquitoes, offering a potential alternative to strains already being tested as virus control tools.
A total of 180 incidents of piracy and armed robbery against ships were reported to the International Chamber of Commerce’s (ICC) International Maritime Bureau (IMB) in 2017, according to the latest IMB report. This is the lowest annual number of incidents since 1995 when 188 reports were received.
Takaful
Malaysia-based Islamic Financial Services Board (IFSB) has added two new modules on its FIS E-learning Portal, offering borderless learning experience for nine IFSB Standards covering the Islamic banking, takaful and Islamic capital market segments. The two modules are for “IFSB-8: Guiding Principles on Governance for Takaful Undertakings” and “IFSB-9: Guiding Principles on Conduct of Business for Institutions offering Islamic Financial Services (IIFS)”.
Sukuk issuance in 2017 grew by 45.3% y-o-y to reach US$97.9 billion, underpinned primarily by the jumbo issuances of some GCC countries. However it is unclear whether the global sukuk market can stage a repeat performance in 2018 after a strong performance last year, said S&P in a report, “Global Sukuk Market Outlook: Another Strong Performance In 2018?”.
The lack of capital is the main obstacle that is hampering insurers with takaful windows from spinning off their Islamic insurance units into independent takaful operators, according to Mr Mochamad Mukhlasin, Director of Non Bank Financial Industry, Indonesia Financial Services Authority (OJK).
Malaysia’s takaful growth has continued to outpace the conventional insurance sector in 2017, said Fitch Ratings. Family and general takaful grew by 7.5% and 5.9%, respectively, in the first half of 2017, compared with 5.2% and -1.8% in life and general insurance, respectively.
Etiqa, the insurance and takaful arm of Maybank Ageas Holdings, has been split into four organisations, complying with Bank Negara Malaysia’s (BNM) Financial Services Act 2013 (FSA) and Islamic Financial Services Act 2013 (IFSA), which require a composite licensed insurer to carry life insurance and general business in a single license, and a composite licensed takaful operator to carry family takaful and general takaful business in a single licence, respectively.
The cost of healthcare services offered by the private sector has been rising slightly with the implementation of VAT since 1 January. While medicines, a key component in healthcare, are exempted, most of other medical services are being brought under VAT.
The Saudi Authority for Accredited Valuers (Taqeem) has started to receive requests from investors to establish and operate accident damage assessment centres in line with the authorities’ plan to privatise vehicle accident damage assessment services and to involve the private sector in the establishment and operation of these centres.
Localisation of manpower in the Saudi insurance sector reached 66% at the end of the third quarter of 2017, up from 58% at the end of 2016, according to Dr Ahmed Al-Khulaifi, Governor of the Saudi Arabian Monetary Authority (SAMA).
To minimise the number of car accidents, insurers in Saudi Arabia have been ordered to keep offering safe drivers a discount of up to 15% for another six months, ending on 30 June 2018.
Al Karama, the holding company which manages a significant number of the companies and assets seized by the Tunisian State, has entrusted the sale of Banque Zitouna and Zitouna Takaful to a consortium led by consulting firm Finactu following an international call for tenders.