Magazine

Read the latest edition of AIR and MEIR as an Interactive e-book

Aug 2012

Read the latest edition of AIR and MEIR as an Interactive e-book

All Stories

Country Profile

Coping with the revolution and its side-effects

Though most of the damages from the civil unrest were excluded as being outside SRCC classification, insurers are still finding it hard to grow amidst a tough environment.

Political risk remains high

Ms Zaineb Al-Assam of Exclusive Analysis looks at the delicate security situation in Yemen six months after its new government was installed.

UIC Yemen: Moving to takaful

United Insurance Co (UIC) plans to change its operations to takaful as majority of its clients are converting accounts to the Shariah-compliant formula, says General Manager Tarek Hayel Saeed. By Osama Noor

YQI targeting the top ranks

As a new entrant, Yemeni Qatari Insurance (YQI) plans to expand by tapping on bancassurance, says Mr Mujib Radman, General Manager. By Osama Noor

Takaful Market Profile

Malaysia: Competition pushes operators to be different

With the increased governance standards imposed by the regulator, Islamic insurers are competing on an even higher level than before.

Malaysia: Gearing up for growth

We look at recent highlights and upcoming plans of several takaful operators in the market.

Malaysia: Bank Negara targets niche players for future takaful growth

Malaysia’s proposed economic transformation demands an expanded role for takaful operators in mitigating commercial risks as well as serving a wider spectrum of consumer needs.

Interviews

Talbot strikes out on its own

Talbot Underwriting (MENA) Ltd might have ended its JV alliance with ADNIC, but it will continue to build its presence in the region under the leadership of new CEO Matthew Warren. By Cynthia Ang

Cover Story

Microinsurance must fulfill the needs of women

While women form 70% of the world’s poor, microinsurance structures often overlook the specific needs of women causing them to fall through the cracks. To best serve the low-income, it is essential that product design and delivery take into account women’s unique needs.

Microinsurance: MENA spells good potential for microinsurance

Insurers should actively shape the market through engaging policymakers and leverage on local initiatives to construct a broad and consistent microinsurance programme.

Microinsurance: Close co-operation needed to achieve financial inclusion

A successful microinsurance framework requires that insurers and microfinance institutions co-operate and complement each other on a technical basis as well as in providing the right products and delivery channels.

Risk Features

Microtakaful – Time to make a real difference to people’s livelihoods

Takaful providers can build successful businesses on the basis of solidarity by tapping on the experience of mutuals in microinsurance.

MENA & GCC : More GCC employers offer flexible benefits

The number of GCC companies offering flexible benefits is on the rise as firms recognise that employees appreciate the right to choose from tailor-made packages that fit their individual needs, said global HR consulting firm Mercer in a survey.

Class Update

Insurance for SMEs: The growing pains of family businesses

 Family controlled businesses increasingly need a comprehensive risk management programme as part of its succession plan.

Agriculture: Agricultural insurance to help improve food security

Effective policy framework and innovative risk transfer measures can assist to balance agricultural productivity with demand and reduce income volatility.

Online auction to salvage resale cars

Insurers are adopting online auctions to resell salvaged autos in a bid to stay profitable.

Conference Reports

Tunisia: Industry to move with region’s new norms

Insurers are urged to adjust their strategies to cope with the political and demographic transformation in the region.

UAE: Sharjah to provide social and health insurance for all citizens


The Ruler of Sharjah announced that social and health insurance would soon cover the citizens with limited income as part of the key priorities to provide social security and medical welfare to the Emiratis in Sharjah.

News

MENA & GCC : MENA premiums up 17% to US$31.4 bln in 2011

Total premiums generated by 13 MENA markets grew 17.1% y-o-y to US$31.4 billion in 2011, accounting for 0.7% of global premiums, said Swiss Re’s latest sigma report.

MENA & GCC : Beirut now the most expensive city in MENA

Reduced cost of living in the Middle East, mainly driven by falling rents, has helped to drive down the region’s ranking in Mercer’s 2012 Worldwide Cost of Living Survey.

MENA & GCC : GCC’s end of service benefit to hit US$75 bln by 2020


The combined liabilities of all GCC employers for End Of Service Benefits (EOSB) is now around US$16 billion and is projected to increase to $75 billion by 2020, said a new report by Insight Discovery, highlighting there is a critical need to restructure the region’s EOSB system.

MENA & GCC : MENA women want financial freedom


Working women in the region are motivated mostly by monetary prospects, and 65% of them believe that women in mixed-gender workplaces receive no special benefits, said a survey conducted by Bayt.com, the Middle East’s leading job site and YouGov, a research and consulting organisation.

MENA & GCC : GCC’s top 30 insurers see falling profitability


Insurance profitability across top 30 conventional insurers in the GCC dropped over the last four years from 28% in 2007 to 9% in 2011, said a report by global management consultancy A.T.

MENA & GCC : GCC to see strong growth in 2012 despite regional risks


Despite heightened regional geopolitical risks, four out of six GCC countries and the UAE in particular, are poised to witness robust economic growth this year in comparison to the previous year, said a report by the Dubai Chamber of Commerce and Industry (DCCI).

Iran: Iranian insurers ready to cover foreign oil tankers


Two Iranian insurers, Central Insurance Co and Kish Protection & Indemnity Club (Kish P&I), have reported that they are ready to provide insurance coverage for tankers carrying Iranian oil.

Jordan: Federation adopts electronic traffic accidents reporting system


ordan Insurance Federation (JOIF) signed a co-operation agreement with Jordan Public Security Directorate (PSD) in July to launch electronic reporting of traffic accidents via GPS and satellite GPRS, with the aim of improving the process of solving cases of material damages caused by car accidents.

Jordan: Premiums grew 9.5% to US$288 mln in May

Gross premiums in Jordan grew by 9.5% to US$288.1 million at the end of May compared to the $263.1 million recorded in the same period of 2011, said the Insurance Commission of Jordan (IC) in a report.

Hong Kong-based fund pays US$130 mln for Jordan Dubai Capital


HPF Private Investment Fund Co, a Hong Kong-based investor has acquired the entire share capital of Amman-based investment company, Jordan Dubai Capital (JD Capital) for JOD92 million (US$129.7 million) from Dubai International Capital and other shareholders.

Lebanon: Bank Audi completes LIA Insurance divestment


Bank Audi sal - Audi Saradar Group and Saham Finances jointly announced that they have completed the sale by Bank Audi and certain individual sellers of 81% of the share capital of LIA Insurance sal on 27 June, within the expected timeframe after receipt of the required regulatory approvals.

Libya: Clyde & Co opens office in Libya

International law firm Clyde & Co has opened an office in Tripoli on 1 August, its fifth in the MENA region, headed by Libyan lawyer Albudery Sharih, the former General Counsel of the Libyan Investment Authority.

QFCRA signs information exchange deal with IAIS


The QFC Regulatory Authority (QFCRA) has become a signatory to the International Association of Insurance Supervisors (IAIS) Multilateral Memorandum of Understanding (MMoU).

UAE: DHA launches second phase of e-claims project


The Dubai Health Authority (DHA) has embarked on the second phase of its project for electronic health insurance claims to be implemented across all clinics and hospitals in the Emirate, as it seeks to further minimise insurance fraud, said media reports.

UAE’s new oil pipeline to reduce shipping and insurance costs


The UAE has inaugurated a much-anticipated overland oil pipeline that has the potential to export more than 1.5 million barrels a day (bpd) through the seafront of Fujairah.

UAE: Half of investors have no life and critical illness cover


UAE investors are failing to take appropriate professional financial advice when planning their investments, said the latest Friends Provident International (FPI) Investor Attitudes Report.

UAE: OIC and National Bank of Fujairah ink bancassurance deal

The National Bank of Fujairah (NBF) has signed an agreement with Oman Insurance Co (OIC) that would see the bank distribute a suite of general and life insurance products through its distribution network.

UAE: Green Crescent trims first-quarter net loss to US$2.3 mln

Health insurer Green Crescent Insurance Co (GCIC) reduced its loss to AED8.6 million (US$2.3 million) in the first quarter of 2012, compared to a loss of AED14.5 million in the same period last year.

UAE: Pacific Prime partners InterGlobal to offer direct settlement in Dubai


Hong Kong-based Pacific Prime Insurance Brokers has negotiated an exclusive arrangement with InterGlobal in the Middle East to provide direct billing services for policyholders in Dubai as part of its initiatives to meet the demands of a growing individual client base in the UAE.

UAE: Zurich unveils new travel products for UAE residents


Zurich has launched a range of travel insurance products in the UAE ahead of a wider regional rollout in Bahrain, Kuwait, Lebanon and Oman.

Global News

CAT losses cost insurers US$12 bln in 1H12

The first half of 2012 saw US$26 billion in catastrophe-related economic losses, of which $12 billion were insured by the industry, indicating that the losses were relatively moderate, said Munich Re in a report.

Piracy falls sharply in first half of the year


The number of pirate attacks fell to 177 in the first half of 2012, down from 266 in the same period last year, led by a drop in Somali piracy, the International Maritime Bureau (IMB) said in its global piracy report.

It’s “AIG” again


American International Group’s (AIG) global P&C business, renamed Chartis in 2009, will revert to the AIG name this autumn, reinforcing the brand power of a name.

Global commerce to bypass the West as emerging market intra-trade increases

Rapidly accelerating growth and increased intra-trading across South America, Africa, Asia and Middle East (SAAAME) is leading to a radical shake-up in the competitive environment for financial services businesses, according to PwC.

Takaful News

Bahrain: Takaful Int’l launches mobile app


Bahrain-based Takaful International has launched a new mobile application for Apple’s iOS and Google’s Android mobile operating system devices, enabling instant access to its products, starting with motor takaful policies.

Malaysia: New test for takaful agents vexes operators


The new testing standards for takaful agents in Malaysia, introduced in April this year, is causing concern for takaful operators as the average passing rate for those taking the Takaful Basic Examination (TBE) has plummeted to around 10%, disrupting the plans of many takaful companies to grow their agency force amid keen competition, said...

Takaful Malaysia looks to Labuan for SPV

Syarikat Takaful Malaysia will set up a wholly-owned subsidiary as a special purpose vehicle (SPV) in Labuan International Offshore Financial Centre (IOFC) to invest and hold its overseas property investment, according to local news reports attributing Group Managing Director Dato’ Hassan Kamil.

Oman: Takaful regulation expected by end-3Q


Legislation covering takaful and sukuk in Oman is expected to be finalised by the end of the third quarter this year, according to a senior official from the Capital Market Authority (CMA) who spoke to Reuters recently.

Pakistan: Regulator formalises windows

The Securities and Exchange Commission of Pakistan (SECP) has formalised new rules allowing takaful windows to be set-up when it launched its “Takaful Rules” 2012.

Pakistan: Centre of Excellence for Islamic microfinance formed


A centre for excellence in Islamic microfinance has been established in Pakistan, providing microfinance institutions with a wide variety of training and capacity building programmes as well as guidance on Shariah law.

Saudi Arabia: Long-awaited mortgage law to be passed

Saudi officials have approved a draft law to facilitate mortgage transactions in the Kingdom which would help ease the concerns of banks previously discouraged from lending due to unclear regulation.

UAE: National Bonds launches family financial protection plans


National Bonds Corporation, the leading Shariah-compliant saving scheme in the UAE, has launched a diverse range of Islamic insurance plans starting from 50 fils a day.

UAE: Standard Chartered unveils Islamic wealth products for HNWIs


Standard Chartered Private Bank has introduced a suite of Islamic wealth management products aimed at high net worth clients across its offices in Dubai, Geneva, London and Jersey.

UAE: Dar Al Takaful launches travel products


Dubai-based Dar Al Takaful has launched a new suite of travel insurance products named “Terhal”, with comprehensive benefits that extend to even cover sports activities as well as terrorism.

Global Takaful

Risk management to assume greater role for Islamic institutions: Deloitte


The governance and risk management of Islamic financial institutions will have to evolve in line with global regulatory trends, with risk officers playing an increasingly important role in coordinating between boards and Shariah supervisory board as well as other business units, said Deloitte in its recent report: “Empowering Risk...

S&P launches Shariah index with the OIC


Standard & Poor’s has released an index measuring the performance of 50 of the largest Shariah-compliant companies from the member states of the Organisation of Islamic Cooperation (OIC), each with a minimum three-month average daily value traded (ADVT) of US$1 million.

Islamic Development Bank prices US$800 mln five-year sukuk


Jeddah-based Islamic Development Bank (IDB) has priced a US$800 million sukuk in its first public debt issuance in over a year, according to media reports.

West Africa moves closer to Islamic financial services


The West African Economic and Monetary Union (UEMOA) has taken a major step towards introducing Islamic financial services later this year, following a review of the entire region’s financial sector and regulations pertaining to banking, insurance, microfinance, and securities and capital markets.