The diabetes burden is getting worse, not better, in the Middle East and Africa (MEA) region – putting growing pressure on healthcare providers and, in turn, the healthcare insurance industry.
Sustained profitability can only be achieved by MENA insurers through well-executed operational transformation strategy, backed by robust technology and a customer-centric approach, said EY in its report, “Insurance Opportunities in the Middle East”.
A new regulation has come into effect, loosening entry requirements for those eyeing a position as a general insurance agent or broker.
Premiums in the Algerian insurance market declined by 7.9% to DZD36.3 billion (US$329.6 million), including international acceptances, from January to March this year, compared with the corresponding quarter in 2016, as the economic slowdown hits the sector.
Arig reported net profit of US$4.1 million for the first half of 2017, a surge of 128% y-o-y. Its technical result in the first half increased to $8.6 million from $4.0 million during the same period last year, while investment income grew by 24.2% y-o-y to $12.3 million.
The Iranian government has approved measures to reduce taxes on the insurance sector via exempting insurers from value added tax (VAT), according to Economy Minister Ali Tayyebnia.
Insurers and agents conducting online sales will be liable for problems caused by any illegal sale activity, said the head of Central Insurance of Iran (CII).
The Jordanian insurance industry posted total technical profits of JOD30.5 million (US$43 million) compared to JOD34 million last year. The decline of around 10% in technical gains was due mainly to medical insurance where underwriting profits fell from JOD8 million in 2015 to JOD0.8 million in 2016.
Kuwaiti Minister of Health Dr Jamal Al-Harb has approved the renewal of a contract for six months with the private firm, Public Services Company, which issues medical insurance cards to expatriates.
Kuwaiti insurers are lobbying the government to raise third-party motor insurance premiums by 400% from current levels, which have been in place for more than 55 years since the insurance law was enacted in 1961.
The government of Morocco is working to set up a new framework for solvency regulation in the insurance sector.
The insurance sector achieved a turnover of MAD35.1 billion (US$3.7 billion) in terms of written premiums in 2016, an increase of 15.4% over the previous year, according to the 2016 Financial Stability Report released recently.
Morocco-based Saham Finances said the company has acquired a total of 21.08% of Sunu Assurances, paving the way for the Saham group to become the insurance market leader in West and Central Africa, said media reports.
The Moroccan Association of Actuaries (MAA) hopes to obtain regulatory recognition from the Insurance Supervisory Authority (ACAPS) as a professional body of actuaries, in order to fully exercise its role as a promoter of the actuary’s role in the insurance and financial market sectors.
The Omani government is planning to introduce mandatory health insurance for private sector employees in the Sultanate.
Al Ahlia Insurance, whose IPO closed on 2 August, has decided to allot a minimum of 15,000 shares to retail investors as well as 35% of any additional share applications made by them.
Muscat National Holding (MNHC) has announced a plan for mergers with its two subsidiaries Muscat Insurance and Muscat Life Assurance.
Vision Insurance has launched its IPO in early July to raise around OMR4 million (US$10.4 million).
Political tensions within the GCC will persist over the next few years, said S&P which believes that the boycott of Qatar has illustrated deeper fissures within the group than were previously evident. The ratings agency also believes that the impact of the current boycott of Qatar may not be confined to within Qatari borders.
Tunis Re’s GWP increased by 12.8% to TND113.4 million (US$46.7 million) in 2016, with growth in the fire, engineering, and life classes offsetting reduced volumes in the aviation portfolio.
Recent changes and proposals to the Turkish regulatory framework are raising significant concerns for European (re)insurers operating in the Turkish insurance market, said the European insurance and reinsurance federation.
Recent changes and proposals to the Turkish regulatory framework are raising significant concerns for European (re)insurers operating in the Turkish insurance market, said the European insurance and reinsurance federation.
Storms and flash floods which hit Istanbul, the commercial hub of Turkey, have led to economic losses of at least US$850 million in July alone, according to Aon Benfield’s July 2017 Global Catastrophe Recap. The powerful thunderstorms have led to a projected insurance bill of at least $440 million.
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The Turkish government has gazetted amendments to the insurance legislation, a move that, among other things, has led to the establishment of a High-Risk Insurance Pool to cover mandatory motor third party liability (MTPL).
A second inferno in two years at The Torch Tower in Dubai has put the spotlight on other skyscrapers, where there have also been cladding fires previously.
The average cost of international health insurance in Dubai in 2017 is US$8,959, down from the $10,213 reported for 2016, said insurance intermediary Pacific Prime in its “Cost of International Health Insurance Report”.
Drivers in the UAE are currently paying an average of 13.6% more for their fully comprehensive car insurance policies than they were last year, according to an analysis from the comparison website, yallacompare.
Drivers in the UAE are currently paying an average of 13.6% more for their fully comprehensive car insurance policies than they were last year, according to an analysis from the comparison website, yallacompare.
The imminent shift to the international refined diagnosis-related group (IR DRG) system by healthcare providers in Dubai will completely transform insurers’ payment approaches to healthcare providers.
July was a busy month for the Abu Dhabi Global Market (ADGM) which signed cooperation agreements with four regulators covering such areas as financial activities, FinTech and securities.
The latest pact was signed in late July with Labuan International Business and Financial Centre (Labuan IBFC) and Labuan Financial Services Authority (Labuan FSA). The new partnerships aim to foster greater collaboration on joint financial activities and regulatory practice that support the growth and development in both financial ecosystems in Labuan, Malaysia and Abu Dhabi.
Labuan IBFC is the organisation entrusted with market development for Labuan IBFC, the jurisdiction and is a wholly-owned subsidiary of Labuan FSA, the statutory regulator entrusted to manage the international business and financial centre.
The MoUs established a strategic platform for Labuan FSA and the ADGM’s Financial Services Regulatory Authority (FSRA) to better understand and share pertinent information on banking, financial services, securities legislation and regulations in each market.
At almost the same time, ADGM and the Australian Securities and Investments Commission (ASIC) strengthened their FinTech collaboration with an official strategic partnership to further advance developments and initiatives that nurture FinTech entrepreneurship and support innovation in financial services in Abu Dhabi and Australia. This FinTech bridge is a fruition of meaningful dialogues and exchanges between the FinTech teams of ASIC and the FSRA of ADGM.
This new agreement establishes ADGM’s fourth FinTech bridge with a global FinTech hub, following its recent collaborations with the Monetary Authority of Singapore, the Kenya Capital Markets Authority and the Authority of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone (Qianhai Authority).
In mid-July, the FSRA signed a Memorandum of Understanding and Cooperation with the Cyprus Securities and Exchange Commission. The MoU aims to enhance the cooperation between the two supervisory authorities, aiming specifically to facilitate the exchange of relevant and appropriate information and technical expertise.
At the start of July, the FSRA and the Authority of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone (Qianhai Authority) entered into a partnership to further develop and promote closer investment and financial innovation opportunities and collaborations for enterprises in Qianhai, Hong Kong and Abu Dhabi.
Qianhai is a designated leading economic zone by the Chinese government to advance and facilitate innovation in key industry sectors including finance, modern logistics, information and technology. M
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Takaful
Growth in gross premiums in the Islamic insurance (takaful and Islamic cooperative tawuni) sector in the GCC slowed significantly to less than 1% in 2016, according to a report by S&P Global Ratings.
Egypt’s first government-owned takaful operator is expected to commence operations within six months, said Mr Ashraf El-Sharkawy, Minister of Public Sector Affairs.
Indonesia, the world’s biggest Muslim majority country, has launched a high-profile National Committee for Shariah Finance (KNKS) in late July by President Joko Widodo.
Syarikat Takaful Malaysia Bhd (STMB), in a reorganisation, is changing its name to Syarikat Takaful Malaysia Keluarga Bhd (STMKB) and establishing a new wholly owned subsidiary, Syarikat Takaful Malaysia Am Bhd (STMAB), the company said in a filing on Bursa Malaysia.
Jaiz Takaful Insurance has fully commenced operations in four cities in Nigeria, namely, Kaduna, Kano, Lagos and Abuja, the last being the capital city of the country and where the insurer has its headquarters.
Morocco’s Government Council has reviewed and adopted a draft decree regarding takaful or participatory insurance, moving the insurance industry a step closer to the launch of Islamic insurance.
Takaful contributions surged by about 18% to OMR42.06 million (US$109.2 million), representing 9.3% of the total market share, according to the Capital Market Authority (CMA) annual report.
Mediterranean & Gulf Insurance & Reinsurance (MedGulf) has recorded SAR733.97 million (US$195.7 million) in accumulated losses at 30 June 2017, accounting for 73.4% of its capital, the company said in a statement to Saudi bourse, Tadawul. This followed accumulated losses of SAR294 million at 31 March 2017.
Saudi Re has signed a Memorandum of Understanding with Probitas Holdings (Bermuda) Limited (PHBL) to purchase 49.9% of the shares of the latter.
Insurers in Saudi Arabia are rejecting about 25% of medical claims from hospitals and other service providers on the grounds of fraud.
Saudi insurers made a combined net income of SAR318.8 million (US$85 million) in 1Q2017, 11.7% higher than the SAR285.5 million posted for the corresponding period last year.
Abu Dhabi National Takaful Co (ADNTC) saw its combined net profit grow 35% y-o-y to AED40.9 million (US$11.1 million) in the first half of 2017, while underwriting profit reached AED34.1 million compared to AED22.8 million for the same period last year.