Despite the grim realities of the outside world with the Trump victory, Brexit kicking in and the political tensions and strife within the region, the insurance industry does have pockets of bright lights and great tidings with several companies reporting positive results.
With the series of regulatory changes taking place in the region, the industry can only hope for better times as it adjusts to the challenges and the depressed investment climate including lower oil prices. The IMF has urged the Middle East region to stay on course with the reforms, while compulsory health insurance is catching on in more markets with Oman set for 2018. There is a certain dynamism in the air in several areas in the region with efforts within the GCC to regionalise social insurance covers to increase social mobility; while in Bahrain, there are moves to offer insurance training to commercial court judges; in Qatar, they are starting to regulate the broking sector; and in Egypt, microinsurance regulations have been passed. The industry is on the move.
On the takaful front, they are already looking at new standards in Bahrain, while in Algeria, the call is for a regulatory framework to boost takaful. In the UAE, takafuls are outperforming traditionals in profitability. And consequently, yet more traditional companies in the region are looking seriously at the takaful model.
Our Cover Story this month, following the hugely successful 3rd Middle East Insurance Industry Awards (MIIA), is on saluting the winners and tracking what they will do to stand tall as winners in this hotly contested Awards. There are several worthy winners all around the region from Egypt, Qatar, Bahrain, Jordan, Dubai and the UAE – both big and small, local and international – who will take the lead to raise the bar and boost professionalism within the market. Winning the awards is only one part of the deal. The greater expectation is what they as winners can do for the industry to make insurance a trusted buzzword in the economy and society.
The January renewals are on-going with no real expectations of rate hardening other than for fire business in the UAE. There are also more attention being paid to seeking cyber covers, though it is anybody’s guess if they will be bought.
Our Country Profile is on Iran, a new frontier for international and regional insurers with its large general insurance premium pie. There are hurdles yet to be overcome, but both local and international players are stepping up to the challenge, seeking ways to cooperate for mutual benefits as Iranian insurers are also looking to get back into the mainstream markets.
In the era of disruptive innovation, we bring you a special feature on how brokers are strategising to get ahead of the disruption curve by embracing technology to enhance their value-add service to clients. We also look at the safety net and balance between fintech, innovation and safety to beef up the hand of regulators.
On bancassurance, we make the call for long-term strategic partnership instead of opportunistic short-term fixes. On aviation, we look at the changes in the UAE rules on minimum standards for airlines, aircraft operators and drones flying there. And on cyber, we want to expose the purveyors of cyber fraud.
To tie in with the 2nd RIMS Middle East Risk Forum this month, we offer you an ERM Tool Kit and also look at the journey of a winner in risk management.
It is December and hence it is necessary to take stock of your business direction and results. While profits are important in business, they are not everything. A company is still measured by its brand, reputation and service standards, especially in hard times. So take heart if you have kept your credibility intact in these difficult times.
It is December. ‘Tis the season to be jolly.
Sivam Subramaniam
Editor-in-Chief
Middle East Insurance Review