Total insurance premiums in Arab countries reached about US$35 billion by the end of 2016 for conventional and Islamic insurance, while the annual growth in insurance premiums is estimated at around 6%, according to Dr Abdulrahman bin Abdullah Al Humaidi, Director-General of the Arab Monetary Fund (AMF).
Dr Al Humaidi, speaking at a risk workshop last week organised by the Economic Policies Institute of the AMF in co-operation with the Financial Stability Institute of the Bank of International Settlements, stated that the insurance sector in Arab countries has grown in recent years, in line with developments in Arab economies that promote the need for insurance services, reported the Emirates News Agency.
However, he also pointed out that the sector faces several challenges, the most important of which is the need to increase the specialised competencies of supervisory and regulatory bodies and companies that operate in the insurance sector. This requires harnessing the potential and raising the level of professionalism of insurance sector personnel.
He stressed the need to develop risk management practices in the insurance industry, which will have a direct impact on the sector’s development and stability. He called for raising awareness of the importance of risk management by developing relevant systems and mechanisms at various levels.