The cumulative investment required in infrastructure development in the Gulf from 2019-2023 is about $1tn, excluding large mega projects, said a report by global management consulting firm Oliver Wyman.
The Saudi Arabian Monetary Authority (SAMA) and Dubai Financial Services Authority (DFSA) have signed an MoU to strengthen mutual cooperation in the supervision of insurance and banking.
Insurers are awaiting a response from the Ministry of Finance regarding a new pollution tax to be imposed on vehicle owners. The tax is provided for in the draft revised finance law scheduled to be passed in 2020.
Bahrain’s National Health Insurance Scheme (Sehati) will be presented to the government in mid-2020 and implemented in the second half of next year at the earliest.
The Egyptian Financial Regulatory Authority (FRA) is currently planning to increase financial inclusion in the country through digital applications and electronic issuance of insurance policies. The regulator also wants to allow insurers to deal with their customers through mobile applications.
The combined profits of 22 insurers operating in the Jordanian market grew by 56.4% to JOD17.2m ($24.3m) at the end of September 2019, compared to JOD11m for the corresponding period last year, according to a study by Sanabel Al Khair for Financial Investments.
The Ministry of Health is coordinating with the Health Insurance Hospitals Company to offer health insurance for expatriates starting from 2020, said media reports.
Although Lebanese insurers are accustomed to operating in a challenging economic environment, the accelerating decline in investor confidence and US dollar cashflow constraints create further risks for insurers with fixed costs in US dollars, said AM Best.
The Moroccan Union of Insurance Agents and Brokers (UMAC) has sent a letter to the Ministry of Economy and Finance to continue to lobby for consideration of the requirements of the draft Budget 2020 announced on 21 October, which did not include exemption from VAT on services provided by insurance agents and brokers.
Oman Re has posted net profit of OMR725.3K ($1.9m) for the nine months ended 30 September 2019, representing a 99.4% leap compared to the corresponding period in 2018.
Qatar Insurance Group (QIC Group) saw its net profit grow by 5.4% to $137m in the first nine months of 2019, thanks to stable underwriting results and resilient investment income.
The Council of Cooperative Health Insurance (CCHI) has directed accredited health service providers in the kingdom to make monthly submissions of basic medical data of insured patients, with effect from January 2020.
The Saudi Arabian Monetary Authority (SAMA) has released draft updated actuarial regulations for insurers and reinsurers, according to a statement issued by the financial regulator.
Saudi Re has reported an increase of 133.4% in its net profit before zakat to SAR56.2m ($15m) for the first nine months of this year, compared to SAR24.1m for the corresponding period last year.
Minister of agriculture, water resources and fisheries Samir Bettaieb has officially launched the Natural Disaster Damages Compensation Fund (Fidac). The fund will be managed by the Tunisian Mutual Agricultural Insurance Fund (Ctama).
Accumulated losses due to high claims, especially in motor business, are pushing insurers in Tunisia to search for new sources of financing and business. The insurers are also facing a number of problems due to the slowdown of their activities amid the difficult economic conditions of the country.
Tunis Re has reported an 18.8% increase in premium income to TND120.2m ($42.4m) for the first nine months of 2019, compared to the corresponding period last year.
The Turkish government plans to launch the Complementary Pension System (TES) next year, announced as part of the 2020-2022 national economic programme. The goal is to plug a gap in the country’s pension system.
Demand for compulsory earthquake insurance has increased sharply after the magnitude 4.6 and 5.8 earthquakes struck Istanbul on 24 and 26 September, respectively.
The UAE Insurance Authority’s (IA) much awaited new regulations for life insurance and family takaful are expected to be published in the Official Gazette imminently and take effect six months thereafter.
The Dubai Road and Transit Authority (RTA) has received an honourable mention at this year’s Global ERM Award of Distinction at RIMS’s ERM Conference held in November in New Orleans.
The Emirates Insurance Association (EIA) has said that it is natural for insurers to hedge against motor policyholders who cause more than one accident in a year or a number of accidents over several years.
Banks in the UAE said they are unable to comply with a new banking regulation which allows banks and finance companies to grant mortgage loans where the final repayment is scheduled for after borrowers turn 70. This is because insurers are refusing to insure mortgagor beyond the age of 70.
The Mohammed Bin Rashid Innovation Fund (MBRIF) has selected 10 local and global businesses, including Oasis Insurance Group’s online platform InsureAtOasis, for its Summer Cohort MBRIF Accelerator programme.
Orient has achieved GWP of AED3.01bn in 9M2019 compared to AED2.95bn in the corresponding period in 2018. It recorded a net profit of AED354.8m in 9M2019 compared to AED347m in the same period in the preceding year – making it the leading insurer in the UAE. Its investments are in excess of AED4bn, while the total equity crossed the AED3bn mark.
Global
The International Association of Insurance Supervisors (IAIS) has adopted a comprehensive set of reforms that will enable effective cross-border supervision of insurance groups and contribute to global financial stability.
Moody’s has cut its global sovereign outlook for 2020 to ‘negative’ from ‘stable’, saying disruptive and unpredictable world politics would slow growth and increase the risk of economic or financial shocks.
Less than half of employers in Asia Pacific believe their benefits package is tailored to meet the specific needs of their workforce, according to the latest 2019/2020 benefit trends survey by Willis Towers Watson (WTW). At the same time, only a minority of employers in Asia Pacific and globally think their benefits are truly effective.
Takaful
The Inter-African Conference on Insurance Markets (CIMA), the body in charge of insurance regulation in 14 French-speaking countries in sub-Saharan Africa, has introduced takaful in its insurance law.
The Insurance Regulatory Authority (IRA) has pledged to hasten the completion of a takaful framework to promote the growth of the market segment.
Syarikat Takaful Malaysia Keluarga (STMK) is expected to post a more modest earnings growth rate of 4.3% and 7.5% for 2020 and 2021 – in comparison to a previous forecast of 10% to 15% – on the back of weaker outlook for the overall insurance and takaful industry, according to research house Affin Hwang Capital.
The policy board of the Securities and Exchange Commission of Pakistan (SECP) has approved the General Takaful Accounting Regulations 2019, one of many rules which the financial regulator has been working on.
Turkey’s share in the global Islamic insurance market has jumped from a mere 1.5% in 2014 to 5% in 2019, according to a report released by the Committee for Economic and Commercial Cooperation of the Organization of the Islamic Cooperation (COMCEC).
Dubai Islamic Economy Development Centre (DIEDC) and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) have signed an MoU to explore the latest developments, risks and challenges in Islamic finance at the AAOIFI-World Bank 14th Annual Conference held in Bahrain in November.