The dawn of 2017 is upon us, bringing hopes of a new beginning.
It feels great to have just survived the past 12 months especially with 2016 rated as the worst year ever in the 21st century where the power of social media, fake news and post-truth held sway. 2016, with depressed oil prices, reduced government spending, Brexit, Trump’s victory, rising political risks and tensions, emigration and terrorist attacks and Aleppo, is best left behind.
So what is new for 2017? There is a greater appreciation of costs and a greater determination to survive and get ahead with a better focus on real price for cover. There are moves within regulatory and industry circles to get the pricing corrected and more reflective of the risks assumed, especially in motor and health insurance. There are also right sounds being made on the risk management front to get insurers to adopt a holistic approach beyond just loss prevention.
Our Cover Story is on the outlook for 2017 – one of cautious optimism in an uncertain world beyond just regional politics and depressed investment returns. And insurers are facing up to the major headwinds of weaker oil prices and greater political tensions while seriously trying to strengthen their core competitiveness and infrastructure to make the industry more resilient. There are regulatory changes afoot including in life, healthcare and motor which augur well for the market if enforcement can be actively and reliably pursued. The one overriding concern on the global front seems to be the Trump factor for better or for worse as it becomes a reality.
Our Country Profile is on Tunisia, the inspiring success of the Jasmine Revolution, where both the regulator and the insurance industry are consciously working to create a better marketplace to face the future with a clearer vision and a proper development plan.
The real draw of the year is the Digital Revolution with great promises to transform the insurance sector in the MENA region. We haven’t even scratched the surface of what’s possible when technology is fully embraced. We make the clarion call to wake up and smell the automation and actively explore how to deal with the disruption at the doorstep. Are insurers ready to face the disruptive trends to make disruptive innovation the order of the day?
On Takaful, there is a need for takaful operators to come out with new products that don’t just mirror conventional products lest they be marginalised as Islamic conventionals. Or is that difference blurred too?
There is also a stress on the use of data analytics as crucial to bring higher levels of profitability for motor takaful. In Saudi Arabia, one more insurer has been suspended for poor services in the motor class even as government vehicles are brought under TPL too.
I take this opportunity to wish all our readers the very best for 2017 to make a real impact on the market, while boosting their revenue streams and getting more efficient in service and more importantly making more money. The collegial spirit is most important in insurance as every insurer contributes to the image of the industry. So work to promote the industry alongside your competitors, and be the best you can be to be ahead of them.
For us in Middle East Insurance Review, we aim to be that voice that enables greater interaction and learning within the industry circles. But we need the active engagement of the industry rather than just the good old passive support.
The best is yet to be. Happy New Year!
Sivam Subramaniam
Editor-in-Chief
Middle East Insurance Review