Saudi Arabia and the UAE are ranked as the two most complex countries in the world for international debt collection, according to Euler Hermes’ analysis of debt collection procedures in 50 countries worldwide.
The credit quality of (re)insurers operating in the MENA region is likely to be further tested over the next few years as a result of the increasingly uncertain operating environment, said A.M. Best in a report.
The gap between large insurers in the GCC, which are often more diversified and profitable, and their smaller rivals, will widen as geopolitical risks, fluctuations in global equity and commodity prices and other factors could lead to greater volatility in investment returns this year, said S&P’s Global Ratings report.
The GCC will soon implement a unified system to monitor speeding on roads in member countries, said media reports, adding that the new system will be introduced in coordination with the Customs Department in each member state.
The Algerian economy will grow at 1.5% this year, slower than the 2.2% growth rate estimated for 2017, said international credit insurer Coface. The country’s inflation rate, which stood at 5.5% last year, will increase to 6% in 2018.
Arig has posted a positive net result of US$7.2 million for 2017 to shareholders, representing a drop of 21.7% compared to the previous year’s $9.2 million, despite a high claims record of natural catastrophe losses experienced during the year combined with a major fire loss in the UAE which was one of the costliest claims in the MENA region.
Egypt’s Financial Regulatory Authority (FRA, and previously known as the Egyptian Financial Supervisory Authority) has finalised its comprehensive strategy for the insurance market, in order to increase opportunities, generate business and growth, as well as regulate the market.
The Supreme Constitutional Court, the highest judicial power in the country, has ruled that it is discriminatory to provide insurance only to passengers who are named in a motor third-party liability policy as allowed to ride in a commercial vehicle, while excluding others in the same vehicle but are not named in the policy.
The Financial Regulatory Authority (FRA) has revived and officially taken over the initiative to establish a national reinsurance company. Moves to set up such a reinsurer had failed to take off with several stops and starts, since a committee was formed to oversee its establishment in 2014.
Executive regulations for the comprehensive health insurance law are scheduled to be finalised in mid-March, said Dr Abdelhamid Abaza, the head of the regulation drafting committee.
Iran Insurance Company (IIC), the only state-owned insurer in the country, plans to offer earthquake insurance for residential units, according to a statement on the company’s website.
The Iranian insurance industry currently holds a total of IRR330 trillion (US$8.9 billion) in reserves that is expected to rise in the next fiscal year starting on 21 March 2018, as the insurance regulator will direct that greater attention be paid to evaluating reserve adequacy.
The Jordan Medical Association is negotiating with the Jordan Association for Medical Insurance (JAMI) over new doctors’ fees in contracts with the latter.
The increase in motor insurance prices over the past two decades has failed to help operators deal with the increased losses in this line as well as the overarching impact on the sector’s overall results. There are moves towards floating motor premium rates, but the Kingdom’s economic conditions could thwart these endeavours.
Insurers have expressed concern over the forthcoming implementation of a provision (Article 41) of the traffic law that allows immediate settlement of minor traffic accident claims.
The insurance industry is backing a proposal for the establishment of an Insurance Supervisory Authority (ISA) to regulate the sector.
Several insurance industry executives have called for an update to the insurance legislation for it to catch up with online insurance services.
The economic blockade against Qatar, now into the ninth month, is expected to have only a limited impact on the credit quality of insurers in Qatar, which is slated to see uniform policy guidelines for the sector, reported Gulf Times, citing A.M. Best.
Qatar’s new operational plan for traffic safety for the years 2018-2022 will link insurance premiums to a driver’s road accident record and the risks to which the driver may be exposed, in addition to the driver’s age and type of vehicle driven.
Turkey retains its attractiveness to foreign investors in the insurance sector because of energy, infrastructure and other new projects undertaken or planned in line with the government’s 2023 Vision, said Mr Maximilian Stahl, CEO of Istanbul-based VHV Reassurance.
Avicennia Capital, a sovereign wealth enterprise of Khazanah Nasional Bhd, is seeking to sell its Istanbul-based health insurance unit, Acibadem Sigorta, for around US$300 million, reported Bloomberg, citing people familiar with the matter.
Germany’s third-largest insurance group Talanx has agreed to acquire 99.4% of the shares in Liberty Sigorta, the Turkish non-life subsidiary of US-based Liberty Mutual Group.
Two new motor insurance policies have been rolled out that will cover damages resulting from precipitation or weather conditions, including fog, said Mr Ramez Abou Zaid, Chairman of the legal and automobile departments at the Emirates Insurance Association.
The shortage of insurance board skills amplified by regulatory limitations may be leaving UAE insurers challenged with boards that become ineffective or even dysfunctional over time, according to a new report from Insurance Monitor.
Dubai-based SHIELDS Reinsurance Brokers said it has become a Lloyd’s approved broker with effect from 20 February 2018.
Insurers in the UAE are struggling with a problem involving millions of dirhams in uncollected VAT from policyholders, said S&P Global Ratings.
Berkshire Hathaway Specialty Insurance Company (BHSI) said it has received its insurance licence from the Dubai Financial Services Authority to establish an office in the DIFC.
Global
The African Risk Capacity (ARC), an agency of the African Union (AU), and the United Nations Economic Commission for Africa (ECA) have entered into a new partnership to increase insurance coverage for climate risks for African states.
Traditional aviation insurance policies are unlikely to address all elements of emerging risks from the rapidly increasing use of drones, and general liability underwriters will have an important role to play in providing cover, said the International Underwriting Association (IUA) in a report.
Lloyd’s said it will be launching an Innovation Lab in the second half of 2018. The initiative will focus on designing technology-driven solutions to meet the unique and rapidly changing needs of the Lloyd’s market.
Cisco, Apple, Aon and Allianz have collaborated to launch a new cyber risk-management solution for businesses, helping a wide range of organisations to better manage and protect themselves from cyber risk, including ransomware and other malware-related threats, which are the most common threats faced by companies today.
Takaful
The increasing appetite for Islamic insurance has led many investors to view the retakaful sector as a growth opportunity. However, success generally has been limited, with a number of retakaful companies exiting the market in recent years, said a new report by A.M. Best.
Islamic insurance products are set to be launched in Algeria within this year by a unit of Bahraini Salam Bank.
Egyptian Life Takaful Company (GIG) aims to market its products through 10 branches of Misr Iran Bank during the first year of activating their bancassurance agreement. It has received the approval of the Central Bank of Egypt and the Financial Regulatory Authority (formerly the Egyptian Financial Supervisory Authority) for the agreement.
Syarikat Takaful Malaysia’s net profit grew 17.3% y-o-y to MYR206.7 million (US$53.1 million) for the financial year ended 31 December 2017, while its operating revenue rose 6.3% y-o-y to MYR2.1 billion thanks to higher sales in both family and general takaful businesses.
Qatar Islamic Insurance Company (QIIC) has posted gross written contributions of QAR316.6 million (US$87 million) for 2017, which represented flat sales from the QAR313 million posted in 2016.
Growth in the Saudi insurance sector is expected to be at the best tepid or negative in the short-to-medium term, with challenges such as loyalty of motor policyholders and intense motor competition affecting growth, according to a report by Al Rajhi Capital.
The SAMA has reiterated that insurers in the Kingdom have to cover natural catastrophes, especially for the damages resulting from floods, heavy rains, and hail, in comprehensive motor insurance contracts starting from 1 January 2018.
MetLife AIG ANB Cooperative Insurance has suffered an unexpected significant loss of around 15% of the company’s net assets in the fourth quarter of 2017 connected with its medical insurance business.
Dental and gum treatment, as well as one-time teeth cleaning, will be covered in the new cooperative health insurance bylaws which will be implemented in July 2018, said the Council of Cooperative Health Insurance (CCHI).
Saudi Re for Cooperative Reinsurance Co (Saudi Re) had a successful 2017 with profits soaring by 110.3% y-o-y to SAR38.9 million (US$10.4 million) and business from overseas chalking up notable increases.
The proportion of insured vehicles in Saudi Arabia is expected to increase by around 20 percentage points to 80% in the next two years, following a decision by the General Directorate of Traffic to automatically check insurance records in cases where drivers have committed traffic violations, analysts said. Presently, the percentage of insured vehicles in the Kingdom is less than 60%.
The Tanzania Insurance Regulatory Authority (TIRA) has reiterated its intention to introduce regulations for takaful.
Abu Dhabi National Takaful Co’s (ADNTC’s) combined net profit grew by 35% y-o-y to AED65.3 million (US$17.8 million) in 2017 (for policyholders and shareholders before qard hasan provision), compared to AED48.4 million in 2016.
Events Page
Munich Re hosted a dinner in collaboration with Broktech Insurance & Reinsurance SAL, inviting insurance market players in Beirut, Lebanon. The dinner took place on 31 January at Metropole Brasserie – a French bistro with a cozy atmosphere, representing the warmth of the inviting parties from Germany.