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Nov 2018

News


MENA

MENA: Reinsurance market pressured by overcapacity & huge losses

The MENA reinsurance industry is characterised by its challenging market conditions, borne out of unabating pressure on pricing, overcapacity, and a higher-than-expected number of large losses in recent years, according to a new report by A.M. Best.
 


CII opens Middle East and Africa office in response to growing demand

The Chartered Insurance Institute (CII) is opening a new office to cover the Middle East and Africa (MEA) in response to growing demand from the region for the raising of professional standards and has appointed Ms Gaenor Jones as regional director, MEA, CII and Personal Finance Society (PFS).
 


MENA: Over 90% of professionals say employers are responsible for health and well-being at work

A great majority (93.2%) of respondents believe that it is the employer’s responsibility to promote health and well-being at work, according to a new survey by regional job site Bayt.com. In addition, nearly seven in 10 respondents place greater value on health insurance compared to a higher salary.
 


Algeria: Only 10% of housing is insured against natural disaster

Only 10% of housing in Algeria is covered by insurance against natural disasters, an indication of the absence of insurance culture among Algerians.
 


Algeria: State-owned insurer increases capital by 25%

The Algerian Insurance Company (CAAT) has raised its share capital to DZD20bn ($168.1m) from DZD16bn, an increase of 25%, the insurer has said in a statement. The capital increase was effected by capitalising reserves of DZD4bn.
 


Bahrain: Four new laws to boost investment ecosystem

Bahrain’s King Hamad bin Isa Al Khalifa has issued orders for four new laws covering data protection, competition, bankruptcy and health insurance as part of the reforms that will enhance the kingdom’s investment ecosystem.
 


Bahrain: Trust Re remains confident despite rating downgrades

Following previous statements released by Trust Re regarding delay in releasing consolidated financial statements for the year ended 31 December 2017 causing its rating to be placed under review, Trust Re announced that A.M. Best has downgraded its Financial Strength Rating to B++ (Good) from A- (Excellent) with the Long-Term Issuer Credit Rating changing to “bbb+” from “a-”. Both ratings remain under review with negative implications.
 


Egypt: Regulator in discussions on establishing national reinsurer

The Financial Regulatory Authority (FRA) is considering the establishment of a reinsurer in Egypt with a capital of EGP10bn ($558.3m).
 


Egypt: FRA to prepare legislation to allow for microinsurance mutual

Officials of the Financial Regulatory Authority (FRA) may embed a provision allowing for the incorporation of mutual or cooperative insurers specialising in providing coverage to micro enterprises into a proposed new insurance law.
 


Egypt: Cairo Chamber studying largest group policy for merchants

The board of the Cairo Chamber of Commerce is studying details of group life and property insurance for merchants provided by a number of insurers, including state-owned Misr Insurance.
 


Jordan: Govt mulls over forming independent health insurance body

The Jordanian government is considering establishing an independent body to oversee health insurance, in line with the Ministry of Health’s executive plan for the reform of the health sector for the years 2018-2022.
 


Kuwait: Dhaman to ease govt burden in health services

The Health Insurance Company (Dhaman) will offer compulsory health insurance for expatriates, taking over from the Ministry of Health as the company keeps pace with the development plan of the state, according to Mr Ahmad Al Saleh, board member and CEO of Dhaman.
 


Lebanon: Net profit of health insurers fell 27% to $15.6m in 2017

The aggregate net profit of insurers active in the health insurance branch in Lebanon reached $15.6m in 2017, constituting a decline of 26.7% from $21.3m in 2016, according to data released by the Insurance Control Commission.
 


Morocco: Operators prepare for the fine-tuning phase of solvency rules

A draft circular issued by the Insurance and Social Insurance Supervisory Authority (ACAPS) has introduced qualitative requirements for new standards in the governance and risk management of insurers. The risks that must be controlled include operational risks.
 


Morocco: Healthcare startup welcomes AXA as first institutional investor

Moroccan startup DabaDoc, which allows users to find doctors and book appointments online, has raised funding from AXA Assurance Morocco to increase the company’s footprint in its existing markets and further develop its offering.
 


Oman: New online system launched to manage customer complaints

The Capital Market Authority (CMA) has introduced a new electronic complaint system to serve the customers of insurers. The new system aims to transfer all complaint-related dealings to insurers electronically.
 


Oman: Upbeat growth prospects for insurance mart in the next 2-5 years

The Omani insurance market is expected to have positive growth prospects in the next two to five years, even though short-term growth may be subdued, said S&P Global Ratings.
 


Oman: Regulator advises insurers on IFRS 17 preparations

The Capital Market Authority (CMA) has issued a circular to all insurers and Oman Re urging them to prepare for the implementation of International Financial Reporting Standard (IFRS) 17.
 


Saudi Arabia: Lloyd's launches professionals development programme with regulator

Twelve of Saudi’s top ‘rising talent’ insurance professionals are visiting London to take part in an eight-week internship programme across the Lloyd’s London market in partnership with the Saudi Arabian Monetary Authority (SAMA).
 


Tunisia: Insurers' association drafts Bill on mandatory Nat CAT insurance

The Tunisian Federation of Insurance Companies (FTUSA) has prepared a Bill whose purpose is to make insurance mandatory against all kinds of natural disasters.
 


Turkey: Reinsurance pool proposed for 'risky' businesses

A reinsurance pool will be established, easing access to insurance for some businesses which had been labelled as ‘risky’.
 


Turkey: Wage earners to stay in private pension system for 3 years

The New Economic Plan (YEP) presented by Treasury and Finance Minister Berat Albayrak in September includes changes to the regulation of the Private Pension System (BES), requiring wage earners to stay in the plan for three years.
 


UAE: Poll shows around 50% of residents ignorant of risks of hypertension

Awareness of the risk of high blood pressure (HBP) in the UAE is a key concern, with close to half of respondents (44%) in a recent survey failing to perceive the condition as potentially fatal, according to a nation-wide survey carried out by Cigna.
 


UAE: Insurance sector sees growth opportunities from new retirement visas for expats

The recently introduced visa rules that allow expatriates aged over 55 to retire in the UAE could boost the life insurance sector in the country.
 


UAE: Online survey shows most consumers want more insurance innovation

Most consumers believe there is a need for local insurers to continue to launch modern insurance programmes that are suitable for different segments of society, according to a survey by the newspaper Al Bayan.
 


UAE: Brand and price most impact life insurance purchases

Brand reputation and price have the greatest influence on people’s decision to buy life and critical illness insurance in the UAE, according to FPI’s fourth annual protection survey results.
 


UAE: Etihad Credit Insurance partners with Abu Dhabi commerce chamber to ease global trade

Etihad Credit Insurance (ECI), the national export credit agency of the UAE Federal Government, in partnership with Abu Dhabi Chamber of Commerce and Industry (ADCCI) has conducted a focus group workshop with Abu Dhabi-based exporters, aimed at listening to UAE exporters’ challenges and needs to boost their competitiveness in global trade.
 


UAE: Insurers saw 20% decline in motor premium rates in 1H18

The prices of motor insurance in the UAE fell by 20% in the first half of 2018 compared to the same period last year, Mr Ebrahim Obaid Al Zaabi, director general of the UAE Insurance Authority (IA), has said.
 


UAE: ADNIC to utilise credit bureau's services to strengthen credit risk management

Abu Dhabi National Insurance Company (ADNIC) has announced it will utilise Al Etihad Credit Bureau (AECB) products.
 


Global

National reinsurers form alliance following inaugural Moscow summit

In the rapidly changing political situation, the world economy and the global reinsurance market, the pooling of efforts and cooperation between national reinsurers are key conditions for supporting local insurance markets in emerging economies, said president of Russian National Reinsurance Company (RNRC) Nikolay Galushin in his opening speech at the 1st Summit of National Reinsurers in Moscow, Russia in September.
 


Over 3,000 jobs at risk following MMC-JLT merger

Almost 3,750 jobs are on the line as a result of the Marsh & McLennan Companies (MMC) $5.6bn takeover of JLT Group, according to media reports.
 


IFRS 17 will provide enhanced reporting across the world: A.M. Best

The new IFRS 17 for insurance contracts aims to bring consistency and compatibility across the world, and likely to provide greater granularity, said a new A.M. Best briefing.
 


Reinsurance market players are preparing for a marathon: S&P

The reinsurance sector faces weak business conditions, even after modest price increases in 2018, said S&P Global Ratings which adds that this view remains unaltered even after it discussed reinsurance pricing and the latest market trends with reinsurers, insurers, brokers, and other market participants at the 62nd Rendez-Vous de Septembre in Monte Carlo.
 


ILS activity jumps 54% y-o-y in 1Q18 despite 2017 Nat CATs

The first quarter of 2018 has been the strongest quarter in terms of issuance of insurance-linked securities (ILS) since 2009 despite significant Nat CAT losses in 2017 from hurricanes Harvey, Irma and Maria, according to the latest Bermuda ILS market report.
 


Takaful

Indonesia: Zurich to acquire 80% stake in Indonesia's Adira Insurance

Zurich Insurance is acquiring an 80% stake in Indonesia’s Adira Insurance from PT Bank Danamon Indonesia and a minority investor for about $414m, the Swiss group has announced.  
 


Kenya: Takaful rules expected to be issued by year-end

Insurance industry players are preparing for the introduction of new regulations on Islamic insurance in Kenya by the end of the year.
 


Malaysia: PruBSN converts its composite licence, transfers takaful business

Prudential BSN Takaful Bhd (PruBSN) has announced the conversion of its composite licence to single licence and the transfer of its general takaful business to Syarikat Takaful Malaysia Am Bhd (STMAB), reported New Straits Times. 
 


Malaysia: BNM's shariah arm issues new rulings for takaful and retakaful

The Shariah Advisory Council (SAC) of Bank Negara Malaysia (BNM) has issued new rulings for the takaful and retakaful industry following its 187th meeting in late August. The SAC has decided that the application of musyarakah contract between a retakaful operator and takaful operator in managing the expense strain of the latter arising from the implementation of ‘minimum allocation rate’ requirement is permissible, subjected to conditions.
 


Oman: Alizz Islamic to launch motor takaful following MoU with Takaful Oman

Alizz Islamic Bank has signed an MoU with Takaful Oman, the sultanate’s first full-fledged Islamic insurance provider, to launch takaful products for the bank’s customers, according to a press release issued by the bank.
 


Pakistan: Country's first Islamic reinsurance service approved

The Securities and Exchange Commission of Pakistan (SECP), the country’s capital market regulator, has granted approval to Pakistan Reinsurance Company Limited (PRCL) to conduct retakaful window operations as part of its efforts to boost the fledgling takaful sector.
 


Singapore: Launch of first index tracking shariah-compliant SGX-listed companies

A new shariah-compliant index launched by FTSE Russell, the global index, data and analytics provider, will track companies listed on the Singapore Exchange (SGX). 
 


UAE: ICIEC signs deal with Etihad Credit Insurance to boost Islamic finance

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and the UAE’s export credit agency Etihad Credit Insurance (ECI) have signed an MoU to boost export trade through the promotion of shariah-compliant export credit and investment insurance instruments.