It’s November!
And the times are hard, says everyone. It is the time of global economic turmoil. It is the time of political tensions with pressures and in-fighting. It seems the worst of times with cold war dynamics and fake news spooking rational thinkers. Trade spats aside, climate change and cyber fears rank as top concerns in business planning – and for insurers, coping with changing regulations is a top challenge, too.
Hence the focus for the forthcoming renewals will be flight to quality, says conventional wisdom. So how are regional reinsurers coping with this global scenario? We bring you a must-read summary of an incisive survey given by Morocco’s SCR CEO on how emerging-market reinsurers are fairing in the world. The last Global Reinsurance Forum listed 43 markets in the world as maintaining barriers to trade in the transfer of risks. Kudos to the Middle East emerging reinsurers who scored tops as the most international compared to their counterparts in Africa and Asia, with some 87% of their business coming from overseas. With emerging-market reinsurers having to overcome greater challenges to access talent, capital or better credit rating and potentially more profitable business, they are hoping for some form of non-protectionist government support to help strengthen the home market given their long-term commitment come rain or shine. Enjoy the read.
Our cover story this month looks at the tech disruption in full swing in the MENA region, with even takaful banking on tech for standardisation and promotion of the products. InsurTech is on the go and in a hurry with overwhelming options with far-reaching promises. Our spread comes with a realistic reminder for a transformational response to keep up with the digital landscape and client expectations that transcend the industry’s unique niches.
The country profile this month is on the UAE where with decelerating growth there is a genuine desire to avoid harmful competition and get real and new, too. Improvement in regulatory supervision, risk-management practices and pricing capabilities makes the market attractive to cash-rich players looking to invest. Life, health and savings are the flavour of the moment.
We also bring you a spotlight on Oman where the new regulations promise better prospects though much needs to be done to enjoy the potential opportunities in the sultanate.
Our takaful feature dives deep into concerns that takaful products need to be more inclusive and more affordable – even in Malaysia, which is still seen as the market leader with almost a fifth of the combined premiums coming from takaful.
And taking it one step further in the gig economy where everyone wants to be an entrepreneur, we look at how takaful can protect the entrepreneurial spirit to remain relevant with SMEs & the self-employed. A whole new era of growth awaits takaful.
Deep in November we celebrate the winners of the 6th Middle East Insurance Industry Awards (MIIA), hailed as the true Oscars of the insurance industry with its defined criteria, transparent processes, heavyweight panel of leading lights in insurance serving as judges, and independently audited by EY. So mark your date – 21 November – to celebrate with us.
Lastly, November is the right time to remember to strategise and project for the next year. Never get caught in huffing and puffing to meet this year’s targets and failing to plan for next year. Next year must be the Year of Perfect Vision – 2020 cometh.
Sivam Subramaniam
Editor-in-chief
Middle East Insurance Review