Now is an opportune time for insurance companies to enter the private pension market, as pressure builds on regional economies and governments feel the need to reduce the scale of public-sector pension benefits, according to Mr Luc Metivier, CEO of Takaud Savings and Pensions, a specialist savings and pensions provider based in Bahrain.
The outlook for motor insurance in the Middle East remains negative given the high levels of competition that leads to cut-throat pricing, said A.M. Best in a recent report titled, “Accelerating Competitive Conditions Pressurises Motor Insurance in the Middle East”.
A number of insurance companies have begun discussing a decision to stop issuing motor mandatory third-party liability (MTPL) insurance policies early next year in a move to stop losses.
The Central Bank of Jordan (CBJ) will start regulating the insurance sector next year, said the Deputy Governor of the bank, Dr Maher Sheikh Hassan.
The legal committee tasked with drafting Kuwait’s new insurance law has finalised 75 articles of the Bill out of a total of 100 articles.
Kuwait’s Minister of Health Dr Ali Al-Obaidi has launched a health insurance scheme for retired citizens that would cost the government KWD82 million (US$271.5 million) a year.
Insurance premiums in Lebanon rose by 4% to US$830 million in first half of 2016, while claims and benefits shot up by 17% to $428 million, compared to the corresponding six months in 2015 according to figures released by the Association of Insurance Companies in Lebanon (ACAL).
The total premiums generated by independent brokers operating across Lebanon reached US$234.3 million in 2015, constituting an increase of 7.6% from $217.8 million in 2014.
Mr Walid Genadry was recently honoured as a “Distinguished Fellow” of the International Association of Insurance Supervisors (IAIS), (the equivalent of the Basel Committee for the establishment of international standards of the banking sector), along with three other supervisors: Robert Esson (US), Michael Oliver (UK) and Victor Rod (Luxemburg), in appreciation for their significant contributions to the advancement of the Association.
AROPE Insurance has announced its strategic partnership with BoB Finance, in collaboration with Beirut Brokers, in the presence of Mr Fateh Bekdache - Vice Chairman and General Manager of AROPE Insurance, Mr Michael Abdelnoor - BoB Finance Managing Director and Mr Pierre Talhami - Beirut Brokers General Manager.
The Capital Market Authority (CMA) has issued guidelines for insurance services, which specify the minimum quality standards expected of insurance companies and brokers in the Sultanate.
Oman’s Capital Market Authority (CMA) has signed a memorandum of understanding (MoU) with the Central Authority of Insurance of Iran (Bema Markazi Iran).
As many as 336 people were killed in 2,100 road accidents in Oman in the first half of the year, according to the National Centre for Statistics and Information.
The Qatar Financial Centre (QFC) has announced its relocation to Msheireb Downtown Doha, with new QFC firms able to operate from this new location starting in mid-2017. Existing firms can decide to migrate then, or starting in 2018. The new location will serve as a foundation for Qatar’s new financial city.
Insurance premiums in Qatar leapt by 33.5% to more than QAR11 billion (US$3 billion) in 2015, according to Qatar Central Bank (QCB) Governor Sheikh Abdullah bin Saud al-Thani.
The UAE Insurance Authority (IA) has adopted a new unified regulation for vehicle insurance policies covering civil liability and loss and damage, according to a statement issued by the regulator.
The Emirates Insurance Association (EIA) has estimated that auto insurance premium rates will rise between 25% and 40% during the current year compared to last year, and will continue to increase in 2017.
UAE insurers have made a comeback in the first half of 2016, reporting aggregate profits both on an underwriting basis and a net income basis, after aggregate losses in 2015, noted S&P Global Ratings.
The UAE Insurance Authority (IA) has directed all insurance companies not to mislead consumers and to be truthful in making any declaration or in publishing marketing collateral.
A survey commissioned by Friends Provident International (FPI) has revealed a significant increase in the number of UAE residents who lack protection in the form of life insurance or critical illness, compared with the insurer’s research conducted at the same time last year.
Financial comparison website, compareit4me.com has announced that it has received US$2.4 million in investment through its latest round of bridge funding.
The Dubai Financial Services Authority (DFSA) has imposed a fine of US$85,191 (AED312,650.97) on Clements (Dubai) (CDL), following an investigation conducted in collaboration with the UAE Insurance Authority. The investigation found that, from January 2014 to July 2014, CDL engaged in prohibited insurance activities in breach of DFSA administered rules. The fine includes the giving up of commissions earned by CDL from the prohibited activities.
Africa
Africa’s reinsurance markets are expected to benefit from strong underlying growth, driven by an expansion of its primary markets with insurance premiums of US$64 billion, according to the latest Africa Reinsurance Pulse. The study, based on in-depth interviews with 22 reinsurers and brokers operating in the region, provides a unique overview of the trends and drivers of Africa’s $8.3 billion reinsurance market.
The Algerian insurance market grew by 3.2% to DZD69.9 billion (US$632.7 million) in terms of premiums for the first half of this year compared to the corresponding period last year, according to data from the National insurance Council (CNA).
The Egyptian government presented its long-awaited Bill for a comprehensive health insurance law to Parliament last month, following the completion of the drafting of the law.
The Egyptian insurance market should see strong premium and profit growth in the next 12-18 months aided by the country’s gradual economic recovery, said Moody’s Investors Service in a report.
The Insurance Federation of Egypt (IFE) is currently working on a databank to help insurers detect fraud, according to the chairman of the trade association, Mr Abd El-Raouf Kotb.
State-owned non-life insurer, Misr Insurance Company, has for the first time in its history reported annual profits exceeding EGP1 billion (US$112.6 million).
Allianz Egypt, which is part of Germany’s Allianz Group, has tie-ups with seven banks, ranking first among insurance companies in the country for the number bancassurance partnerships. In second place is Egyptian Takaful Life-GIG which has distribution arrangements with five banks, according to media reports.
ZEP–RE has partnered with the College of Insurance to launch a training academy to train local and regional insurance executives on reinsurance.
All insurance policies covering property damage, motor third party liability and other liability policies which cover bodily injury caused to third parties will have to include cover for catastrophic risks, according to an amendment to insurance legislation.
The Union of Pharmacists of Tunisia (SPOT) has suspended a payment arrangement with the National Health Insurance Fund (CNAM), because of the months of delay by the social health insurance fund in settling amounts due to community pharmacies.
Blue Marble Microinsurance, a consortium of eight companies collaborating to innovate solutions that protect the underserved, has established its first venture in Zimbabwe with the aim of providing drought protection to smallholder maize farmers, said media reports.
Global
IFC, a member of the World Bank Group, has launched an innovative programme that aims to raise US$5 billion from global institutional investors to modernise infrastructure in emerging markets over the next five years, opening up a new stream of capital flows to improve power, water, transportation, and telecommunications systems in developing countries.
Emerging economies are expected to outperform advanced markets over the next five years despite recent slowdowns, according to a report by JLT Re.
Takaful
Manama-based Takaful International has signed a strategic agreement with Al Salam Bank-Bahrain, paving the way for both Al Salam Bank and BMI Bank to offer its customers a suite of Shariah-compliant insurance products through its extended branch network within the Kingdom.
Egypt’s Misr Emirates Takaful Life Insurance Co (METLICO) is studying two funding mechanisms to buy a property where its Alexandria branch lies instead of paying rent, according to its Managing Director Salah Abdel Fattah.
Syarikat Takaful Malaysia has recorded a 30% jump in net profit to MYR44.9 million (US$10.7 million) for the third quarter ended 30 September, compared to MYR34.4 million a year earlier.
Sindh Insurance Ltd (SIL) has received a license to operate a takaful window from the Securities and Exchange Commission of Pakistan (SECP) under Takaful Rules 2012.
The number of participants in health insurance plans in Saudi Arabia rose to about 10.8 million at the end of 2015, an increase of 12% compared to 2014, according to the 2015 report of the Council of Cooperative Health Insurance (CCHI).
Several health insurance companies favour including smoking and obesity among the factors used to determine insurance premiums. Many also want customers to undergo a medical test before they purchase health insurance.
Insurers in Saudi Arabia are showing improved results although the sector is largely under-performing, said S&P in a recent report.
The Council for Cooperative Health Insurance (CCHI)has announced the start of the second phase of the implementation of the the unified health insurance policy, requiring private-sector employers to register their employees and their dependents under a single policy for mandatory health insurance.
Retakaful companies need to undertake three major tasks in order to expand their business. They need to standardise retakaful terminology with clear legal terms, unify Shariah-compliant models and assess economic benefits to their investors, said Mr Adam Ahmed Hassan, General Manager of Baraka Insurance - Sudan.
New sukuk issuance continues to remain subdued in 2016, but growth prospects for the Islamic finance sector are still strong, said Moody’s Investors Service in a recently published report.