With Brexit a brutal reality, the world markets are in turmoil. There is anxiety all round within the UK, Europe and the world. Even globalisation faces a threat. Much is being discussed and everything hangs in the air. Lloyd’s Chairman has taken the leadership to reassure the world the very day of Brexit that “Lloyd’s will stay at the centre of the global specialist insurance and reinsurance sector” and “continuing our valuable relationship with our European partners”. He said that “Lloyd’s has a well prepared contingency plan in place and Lloyd’s will be fully equipped to operate in the new environment”.
As for the rest, it remains to be seen how the insurance markets will play out. Insurance these days is in the forefront, with the high-powered Insurance Development Forum (IDF) working with the UNDP and the World Bank. The insurance industry is best at assessing and managing risks as its core competency, and can thus play a vital role in helping governments in times of natural disasters. Insurance has been the unsung cob in the anonymous cold wheel that has kept business and economy rolling. The brigade to boost its unsung image has been launched. So watch this space.
With Eid celebrations in the air, it is a great time to be positive and full of drive and courage though the region’s growth is expected to slow down to less than 3% this year.
In the spirit of innovation and being on the cutting edge, our Cover Story in this bumper issue looks at the new horizon for motor insurers at a time of autonomous cars where drivers are a thing of the past. Though it might seem far-fetched, it is happening in several markets already where testing is at an advanced stage in the West and even in Singapore. It is a dream where accident rates would come down. But will insurance become less relevant? Who will buy insurance as there are no drivers - only car owners and car manufacturers and car-tech providers? It then becomes all about Big Data and telematics.
Our Country Profile is on Jordan where there is great expectation on the M&A front with the first deal in a few decades having been completed successfully. We also bring you an interview with the current regulator as Jordan prepares for the transition of its supervisory function to the Central Bank.
On takaful our market focus is on Bangladesh with some 157 million Muslims and still awaiting dedicated takaful regulations. We also bring you a scorecard on the global takaful market assessed as relatively robust by the IFSB, along with a peek into the current dynamics on re-balancing the takaful equation in the region.
And with the summer Olympics, we remind people of the key issues and risks involved in organising large scale sporting events. There is a great opportunity for those who know how.
As I reflect on the nominations for the 3rd Middle East Insurance Industry Awards (MIIA) which closed in June, I am pleased to share that the quality of entries this year has improved significantly though the number of submissions has understandably decreased. This year we have restricted multiple entries for companies other than the composites.
I take this opportunity to wish all our readers the very best “Eid Mubarak” believing that the introspection and reflections would have made you stronger.
Sivam Subramaniam
Editor-in-Chief
Middle East Insurance Review