It is summer and this June is all about Ramadan. It is likely to be a quieter June than usual in the Middle East though there is much happening elsewhere.
The big players in the market are still reviewing their strategic options and refocusing their priorities to keep up with the market reality. On the motor and health fronts, they are tinkering with changes in most markets in the region. Digital and disruption is also on the radar of insurers and regulators even as WannaCry hits home hard for better or worse. In the UAE, there is a double take on bancassurance to protect investors who should know and not be so readily misled. The news seems positive with better economic growth predicted for 2018 and Abu Dhabi creating a talent hub for financial services.
Preparations are underway for FAIR’s 25th General Conference, bringing African, Asian and Arab insurers and reinsurers together to discuss critical issues of cooperation, complementation and competition while tapping on each other’s expertise and skills sets. This is the first time that this event will be held in the Gulf region as the earlier plans for a UAE FAIR in 2009 was missed. Bahrain will be the proud host to this event being held under the patronage of Bahrain’s Premier. You can count on it being made a huge success. So mark your dates – 9-11 October – now!
In expectation of the July renewals, we bring you an expert view of a man who has spent 40 years in the industry where the caution is that “partnerships will be tested” and maybe for the better this time round, though the January renewals did see a return to sanity somewhat. As for June, our Country Profile is on Egypt where, despite the deep reforms in the economy, the industry is keeping pace and even building force while modernising online distribution tools. On takaful, though the numbers have grown, the need is to ensure that it differentiates itself from the conventional players.
Our Cover Story is on Construction and Engineering, long dragged down by the infrastructure slowdown following the oil prices crash. C&E insurers are pressed to differentiate their products to keep up with innovative variants of surety insurance, bonds and all-risk policies. The sword of the “decennial liability” sways perilously near too. And we bring you a good list of the risk management tips to reduce costs and delays.
On takaful, windows for direct and retakaful are still surging forth even as for the need to reach out to new market segments, including bearing in mind that takaful business, is still small, though growing in double digits. But the overall profitability, despite impressive top line growth for general takaful operators, is still limited.
For your summer reading and reflections, we bring you two features: on creating value with innovative tailored solutions that leverage new technologies and another on the disruption debates raging across the globe and how to get a grip on reality.
I take this opportunity to wish our readers the very best for Ramadan. Make that change that counts and serves insurance and society. Boost the awareness of the value of insurance in life, economy and society.
Sivam Subramaniam
Editor-in-Chief
Middle East Insurance Review