For countries in MENA, three key issues exist on the political risk landscape: US/Iran relations under a Biden administration; Saudi Arabia’s role in the region and dealing with the economic fallout of COVID-19, according to the January 2021 edition of Aon’s Political Risk quarterly.
Insurers in Algeria have proposed certain measures to mitigate the negative effects of several adverse developments in the industry, according to Alliance Assurances CEO Hassen Khelifati.
The Supervisory Authority of Insurance and Social Welfare (ACAPS) has published an information guide on its catastrophic events (EV CAT) insurance scheme which entered into force on 1 January 2020.
Despite the COVID-19 pandemic, the insurance sector in Morocco continues to demonstrate strength and growth both in the life and non-life markets, according to a statement issued by the Committee for Coordination and Surveillance of Systemic Risks (CCSRS).
Saudi Arabia’s Finance Ministry, through the National Debt Management Centre (NDMC), has signed a long-term financing agreement with Korea Trade Insurance Corporation (K-Sure).
The government will take concrete steps to move the insurance and private pension industry forward, said media reports citing Turkish Finance Minister Lutfi Elvan.
The Emirates Insurance Association (EIA) and officials in the sector expect that the profits of insurance companies would have grown by between 10% and 12% in 2020.
The Insurance Authority (IA) has exempted reinsurance providers from rating requirements for a period of one year to ease the pressure on capacity, especially with the COVID-19 pandemic causing more stress.
Global
The reinsurance market operated in an orderly and efficient manner for January renewals despite record-setting hurricane landfall in the US and uncertainty about the impact of COVID-19 in some lines, said Aon in its January 2021 edition of the ‘Reinsurance Market Outlook’ report.
The COVID-19 crisis has created an insolvency time bomb which is set to spark a series of insolvencies in 2021, particularly as stimulus measures introduced by governments around the world wear off.
Reinsurance pricing firmed up during the 1 January renewals although rate increases were more modest than what had been expected earlier in the year, due to abundant capital levels and greater willingness of reinsurers to deploy capacity in several sectors, according to Guy Carpenter & Company.
Global cyber crime costs will grow by 15% per year over the next five years to $10.5tn annually by 2025 – up from $3tn in 2015.
Takaful
The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) has reviewed and approved the exposure draft of revised financial accounting standard (FAS 1) ‘General Presentation and Disclosures in the Financial Statements of Islamic Banks and Financial Institutions’. The revised standard included consequential amendments to other standards and the full set of illustrative financial statements.
The Capital Market Authority has approved the main prospectus of mudharabah sukuk of Takaful Oman Insurance for the offer of perpetual sukuk worth OMR25m ($65m).
Walaa Cooperative Insurance Company’s directors have recommended an increase in the company’s capital through a rights issue.
Some members of Weqaya Takaful and Reinsurance’s board of directors, audit and executive committees were convicted and fined a total of SAR1.3m ($350,000) in a lawsuit filed by the Capital Market Authority (CMA).
Gulf Union Cooperative Insurance Company has concluded depositing the proceeds from selling fractional shares, resulting from the company’s capital increase due to the merger in the bank accounts of eligible shareholders, reported Argaam, citing a bourse filing.