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Dec 2020

News


MENA

MENA: Reinsurers to hike premium rates next year

Reinsurance companies will reduce their capacity in addition to increasing premium rates in the wake of the COVID-19 pandemic, said media reports citing Jordan-headquartered Apex Reinsurance Brokers CEO Zuhair Al Atout.
 


GCC: Counterparties' tightening liquidity poses hurdle to insurers' recovery of receivables

Insurers in the GCC countries are exposed to substantial levels of receivables, putting them at risk of increased provisioning and exacerbating pressure on their profitability, said Moody’s Investors Service in a report.
 


GCC: Oman will be first to impose personal income tax

Oman is set to become the first country in the GCC to introduce an income tax on individuals to reduce a growing fiscal deficit.
 


Bahrain: Insurers invest in health insurance claims management firm


Egypt: Council of Ministers approves draft insurance law

The Council of Ministers has approved the country’s draft unified insurance law, a move which takes the much-awaited draft legislation closer to enactment.
 


Egypt: Motor committee lays groundwork to ensure proper technical underwriting

The motor committee of the Insurance Federation of Egypt (IFE) has completed preparations for a table of depreciation rates and allowances related to used vehicles, so as to eliminate confusion among vehicle dealers which sell insurance policies, and customers.
 


Lebanon: Fears arise over possible lapses in reinsurance cover

Several insurance companies have failed to properly reinsure with the outside world, a lapse which puts at risk about $700m of the value of damage caused by the Beirut Port explosion, sources in the Insurance Control Commission have revealed to Arabian Business.
 


Lebanon: GlobeMed partners with university to launch diploma programme

GlobeMed Group and the Higher Institute of Public Health (ISSP) at Saint Joseph University (USJ) have teamed up to offer students a tailored diploma programme in health information analysis. The programme, launched in early October, is delivered online by a team of instructors from GlobeMed and USJ. Students from various nationalities and countries in the MENA region have enrolled in the new programme with courses extending until July 2021.
 


Morocco: Regulator to promote financial inclusion and innovation in digital drive

Two issues - financial inclusion and innovation - will be highlighted when the Supervisory Authority of Insurance and Social Welfare (ACAPS) looks at implementing a digital insurance distribution strategy.
 


Morocco: Reinsurance business outpaces direct insurance in 1H

The premium income of insurance companies in the first half of 2020 increased by 4.6% to MAD27.3bn ($3bn), compared to the corresponding period last year, according to a report published in mid-October by the Supervisory Authority of Insurance and Social Welfare (ACAPS).
 


Oman: Dhamani platform links patients' insurance and medical records

Data traffic will be managed easily and conveniently through the Dhamani platform as it links the corporate records and patient’s medical records with insurance records, said the Capital Market Authority (CMA) in a virtual introductory meeting on the platform.
 


Saudi Arabia: Better pricing dynamics improve operating environment for reinsurer

Saudi Re is carrying out business in an improving operating environment due to better pricing dynamics – with the market hardening after a lengthy soft cycle – particularly for loss-making segments, according to SIMAH’s Credit Rating Agency Tassnief.
 


Saudi Arabia: Localisation ratio edges up in sector

Saudi employees accounted for 74% of the total number of employees in insurance companies in 2019 compared to 72% in 2018, according to a report by the Saudi Arabian Monetary Authority.
 


Turkey: Insurers' ratings under pressure

Turkish insurers’ Financial Strength ratings are under pressure from the negative outlooks on the Turkish sovereign and Turkish banks’ ratings, said Fitch Ratings in a report.
 


Turkey: COVID-19 spurs more people into saving money


UAE: Almost all insurers are engaged in price undercutting

More than 90% of insurance companies in the UAE market have resorted to lowering premium rates in a variety of ways as they compete for business, according to Gateway International Assurance managing director George Ashkar.
 


UAE: More than 50% of residents avoid hospital visits due to COVID-19

Over half (52%) of UAE respondents claim that they would avoid going to a clinic or hospital for general health needs while the global COVID-19 pandemic is active, according to a YouGov survey commissioned by Gilead Sciences Middle East.
 


Global

COVID-19 accelerates health insurance industry change

COVID-19 has created more change in 2020 than over the last 20 years in the insurance industry, according to a global market report by Swiss health and InsurTech firm dacadoo.
 


Lloyd's sees higher pandemic losses than estimated

Global insurance losses from the COVID-19 pandemic will be higher this year than the $107bn Lloyd’s had previously estimated, Lloyd’s chairman Bruce Carnegie-Brown said.
 


Top 10 insurance markets will get hammered in 2021

The world’s 10 largest insurance markets are cumulatively expected to see their GDP decrease by 4.5% in 2020 compared to 2019 because of the COVID-19 pandemic, according to a new report from Insurance Information Institute (Triple-I).
 


UK: Survey reveals the real cost of mental health

Three in 10 workers (29%) are currently struggling with their mental health and, in particular, younger workers are more at risk than older workers (35% of 18-34-year-olds versus 16% aged 55+).
 


Global output decline of $12tn too big for insurers

Global output could take a hit of $12tn by end of next year due to the pandemic and this would be a burden far too high for insurers to cover, according to Swiss Re chief executive Christian Mumenthaler.
 


Takaful

Bahrain: Solidarity plans second merger in 3 years

Solidarity Bahrain plans to merge with t’azur Company, creating a shariah-compliant insurance company with a significantly large portfolio.
 


Indonesia: Takaful operators eye international-scale shariah insurance operations

The Indonesian Shariah Insurance Association (AASI) has revealed that plans are afoot to build up takaful operations to international scale.
 


Malaysia: Takaful market resilient in face of COVID-19

The Malaysian takaful industry posted MYR286.2bn ($70bn) in new takaful protection value in the first half of this year, for which the total new business contribution amounted to MYR3.19bn, according to the Malaysian Takaful Association (MTA).
 


Saudi Arabia: Merger of Gulf Union and Al Ahlia Cooperative Insurance takes shape

Shareholders of Al-Ahlia Insurance approved the company’s merger with Gulf Union Cooperative Insurance during an extraordinary general meeting held in November, the company said in a bourse statement.
 


Saudi Arabia: 2 insurers sign MoU to study potential merger

Saudi Enaya Cooperative Insurance has signed a non-binding MoU with Amana Cooperative Insurance to evaluate a potential merger between the two companies.
 


UAE: Bank to sell stake in 2 insurers to Orient Insurance

Abu Dhabi Commercial Bank (ADCB) has agreed to sell its 49% stake in the UAE’s Orient UNB Takaful and its 20% stake in Egypt’s Orient Takaful to Orient Insurance, part of the Al Futtaim Group.