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Middle East: 2019 promises to be busy for insurers in the region

Source: Middle East Insurance Review | Jan 2019

The Middle East insurance market looks set to be a busy one in 2019, with three main developments standing out, the international law firm Clyde & Co has predicted. The developments are:
 
  • Mandatory health insurance: The roll out of mandatory health insurance in the GCC region will continue. New legislation requiring employers to provide health insurance for their staff has already been announced in Bahrain and Oman for implementation in 2019. But with mandatory health insurance a key driver of growth in markets such as Saudi Arabia, Dubai and Abu Dhabi, others are set to follow.
  • Life insurance rules: The UAE will implement long-awaited Life Insurance Regulations. Originally announced in late 2016, the UAE Insurance Authority has yet to publish the final draft of the regulations for implementation. The regulations, which are likely to have a far-reaching impact on the industry, are expected to cap the total fees and commissions payable by policyholders, curtail the use of indemnity commission, implement mandatory disclosures and pro forma product illustrations. It is expected that the regulations will result in a short-to-medium reduction in the overall number of life insurance intermediaries and is likely to drive consolidation.
  • Tough supervision: Regulators will continue to get tough. Last year saw increasing proactivity by insurance sector regulators, both in terms of the issuance of new regulation and greater enforcement. Authorities in Saudi Arabia and the UAE notably suspended insurers and intermediaries from conducting business pending the investigation and remediation of various regulatory breaches. There is little to suggest that these bodies, and other regional regulators, will not continue this trend into 2019 as the regulators seek to drive compliance and enhance consumer protection. M 
 
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