With May, global warming notwithstanding and the freak weather everywhere, the region is abuzz with visitors and hectic meetings preparing for the July renewals. Things will start to slow down with the start of the fasting month on 27th and the summer heat.
The region has been hit by the geo-political and protectionist global trends, and there are still great uncertainties with pockets of violence all over. Several safety measures taken around the globe with increasing worries over global terrorism and IS have hit the region’s carriers hard, both in the marine and aviation sectors. Overall, the Middle East is only forecast to grow by 2.3% against a world average of 3.5% in the latest estimate by IMF. Even Emirates, Dubai’s airline, has announced plans to cut its flights to the US by 20% in the face of the protection or protectionist US measure banning laptops and tablets in cabins on flight from 10 Muslim countries.
On the insurance front, where the volume is now in excess of US$35 billion at the latest count, business is picking up and InsurTech and disruptive innovation are making greater inroads in several of the markets given the above-average network connections of the Middle East public. Some of the more proactive insurers are exploiting technology to even reach out to SMEs and the man in the street and even looking at gamification to lure the Gen Y to insurance. Technology is helping make insurance look fancier in the region. But can it be sustained? That is the million-dollar question as tech-fads fade fast.
At the World Takaful Conference last month where there were renewed talks of redefining the business model, the warning was for a slowdown in growth despite all the excitement generated by Lemonade in the US whose operating model seemed blatantly takaful minus the religious element. But regulators around the world are still ambitiously tinkering with the takaful regulations to help the players get ahead to meet the protection gap. But Shariah and regulatory compliance still loom as a large challenge for many. But the efforts are ongoing with great earnestness.
Our Cover Story this month is on M&A and we go that extra mile to see why, despite all the strong factors making a compelling case for mergers, the actual take-up is still slow though many a suitor has passed by the parade of beauties. What can “ail thee, knight at arms, alone and palely loitering” though “the granary is full and the harvest done”? Maybe someone beyond Keats has the answers.
Our Country Profile is on Jordan which is still seen as a smallish market given the number of players involved. Despite the stiff competition, the players reported decent profits with the regulator on the lookout to help insurers grow healthily.
This May we bring you a spread of features, including navigating out of the perfect storm, getting ready for unmanned vessels, using tech to stay engaged, closing the large protection gap in the region to serve society, and lastly about investing in workplace wellness given the runaway health costs and claims.
This May do remember to send in your entries for our 4th Middle East Insurance Industry Awards (MIIA) before you start your Ramadan break. You owe it to your company to ensure that you have done the best to boost your corporate brand as a winner! The deadlines are 15 May 2017 for third-party nominations and 31 May 2017 for self-nominations.
Here’s wishing you all the very best for May, where the darling buds must bloom in full glory, no matter how bright the eye of heaven is.
Sivam Subramaniam
Editor-in-Chief
Middle East Insurance Review