Oil prices and the ISIS crisis are particularly affecting the business sentiments in the region, in addition to the global economic fears of deflation and stock market woes. But business must go on. So one must drive forward and lead with confidence even as losses are rising and the exposures are getting riskier.
On the positives, we have Lloyd’s marking its first anniversary in Dubai with several syndicates still waiting in the wings. But even though Zurich, while keeping its life business in the region, is exiting the general space, there are other big guys giving the region another once-over or beefing up their business, whether in traditional or takaful.
Aside from the annual figures where several companies are reporting losses, there is much excitement with the new potential in post-sanctions Iran, making motor more efficient with Bahrain looking at a standardised auto insurance policy by summer, health still being the rosiest sector with governments tinkering with health policies, Zika and pandemic preparedness, insurers getting more social media savvy, the need to step up D&O cover in these turbulent times with greater risks attaching to directors, and an interesting survey finding that three out of four SMEs are actually insured.
In takaful, the buzz is on the new Shariah-compliant cover for political violence cover and the IFSB’s new draft exposure on retakaful.
It is spring, and March starts with the Multaqa Qatar which is in its 10th year and asserting its own mark on the July renewals. The rendezvous buzz in Doha is so perceptible with the networking fever in full swing long before the conference is officially opened. Yet the lure of Multaqa is still very much in vogue with several key speakers in tow.
The message for the renewals is that despite the losses, tougher market conditions and even some talk that most reinsurers have almost used up their spare reserves, the floor price still remains elusive. There is a real need to improve the renewal process and we have an interesting must-read article on minimising your difficulties for renewal.
But more so than Multaqa, the real excitement is being saved for Beirut for the next GAIF Conference in May where even now, a good 11 weeks away, nearly 900 delegates have already signed up. The sentimental and undeniable clarion call of GAIF in Beirut is just astounding – as its Secretary General Abdul Khaliq likes to say, GAIF is the “home of Arab insurance”. The theme this year is “The Future Challenges for the Arab Insurance & Reinsurance Companies”, drawing from the previous ambitious theme at the 50th Anniversary of GAIF in Sharm El Sheikh on “Launch Strategy of Arab Insurance Industry”. So what insurmountable challenges behold the uniquely Arab markets? Sign up now to check it out even as Lebanese hospitality remains an overwhelming lure.
Our Country Profile is on Qatar where the market faces the headwinds of slower economic growth and uncertainty over the compulsory health insurance scheme. Yet, double-digit growth is in the air. Imminent new regulations is seen as a reprieve. On the takaful front, the Qatari focus is on compliance and reporting rules.
With spring, there is always hope. We exhort the winners of the 2nd Middle East Insurance Industry Awards to go out and make that difference! Stand tall to make it count.
Sivam Subramaniam
Editor-in-Chief
Middle East Insurance Review