IIt’s June. GAIF Beirut is over and summer has come. The month also sees the start of Ramadan when with eagerness one starts to reflect on one’s good results too.
As it is a time for reflection, this June our Cover Story is on climate change and the definite signs of green shoots that the region is indeed starting to do something about mitigating the negative impact of global warming. The insurance industry is also out there looking at Nat CAT exposures and climate insurance solutions while stressing the need for risk mitigation, CAT modelling, the need for quality data and proper asset valuations as a pre-condition to getting the right coverage.
June is also post-GAIF! It is time now to move on from “Getting Arab Insurers Fit” to seeing them as real risk carriers and not just risk traders. It is really about understanding the value proposition that the insurer offers to the clients – efficient claims payment, or better still “protection and peace of mind” or the best yet, developing a greater partnership in business operations through risk management and sharing loss prevention tips and alternatives.
We have a special Guest Editorial in this edition from the DFSA Chief Executive Ian Johnston, who also marks his 10th anniversary with the DFSA as he reflects on the changes within the region, the runaway success of the DIFC. He gives a quick overview of supervision across the region and internationally through the IAIS. He provides the low-down too on the “conduct of business”, a term he coined years ago, as the new prudential risk, going beyond just supervising and regulating for the safety and soundness of insurers and reinsurers. This is a MUST Read.
Our Country Profile this month is on the ever resilient Tunisian market where insurers are finding pockets of profitable growth despite the slower economy and unstable socio-political settings, while being overseen by a regulator with an ambitious “To do” list.
On the takaful front, aside from the report of the World Takaful Conference where the focus was on standardisation and setting norms beyond just profit sharing, we bring you a special on keeping in sight the takaful value proposition even as the takaful operators look at ways to win big corporate accounts.
In regional rankings, it is good to see that there are some 11 GCC insurance leaders who rank among the top 100 CEOs in the 2016 listing, adding clout to the region for the industry despite the political strife and uncertainties. And then there is an upbeat forecast by Munich Re that the MENA region will see the second highest growth in the P&C sector globally in the next 10 years.
Along this same vein of raising market capability, the MENA Insurance CEO Club (MICC) is launching the 3rd Essay Contest this month, to boost research and data in the market as it strives for greater professionalism and higher standards, for three hot topics:
• Disruptive innovation & its impact on the MENA insurance industry;
• Can private companies play a role in meeting pension needs? and
• Is there a notable initiative in a market that can be developed into a Pan-Arab initiative?
Even we notice that there are more entries for the 3rd Middle East Insurance Industry Awards this year. Nominations are still open till 15 June. So do take action to see your friends and colleagues and business partners saluted this year. As they say, when times are hard, the tough get going and the clever look for reasons to celebrate to bring joy to all.
In the spirit of summer, I wish everyone a good break including getting better business and the very best of Ramadan to our Muslim readers. Make this period of reflection count.
Sivam Subramaniam
Editor-in-Chief
Middle East Insurance Review