The non-oil sector in GCC states will perform better in 2018 as the global economy is gaining strength, according to Mr Jihad Azour, Director of the Middle East and Central Asia Department of the Washington-based International Monetary Fund (IMF).
The GCC insurance market is projected to grow at a CAGR of 10.9% from US$26.2 billion in 2016 to $44.0 billion in 2021, said Alpen Capital in a report. This projection is based on existing fundamentals of the industry and economic outlook despite challenges such as lower oil prices and reduced public and business spending.
The insurance market is expected to show a decline in premiums by around 8% in 2017, according to the CEO of Alliance Insurance, Mr Hassen Khelifati.
The Bahrain Insurance Association and the General Directorate of Traffic will review mechanisms to assign dispute-free minor accidents to insurers to enhance and speed up services to the public.
Premiums in Egypt’s insurance market are expected to reach EGP22 billion (US$1.2 billion) in the current financial year ending 30 June 2018, representing an increase of 20% over the previous fiscal year, forecasts Mr Alaa El-Zoheiry, Chairman of the Insurance Federation of Egypt (IFE).
Egyptian lawmakers have passed a law to establish a comprehensive health insurance scheme that will cover 92% of the population or around 100 million people. The law, which was drafted over the past six years, will become effective after President Abdel Fattah al-Sisi signs the decree and it is published in the Official Gazette.
The Insurance Federation of Egypt (IFE) has issued a report which says that a study is required into the violent wave of terrorist attacks in the country during the past years that differs from the pattern of terrorism that hit the country during the 1980s and 1990s.
The Egyptian government is considering floating shares in state-owned insurers on the stock exchange, adding to a list which includes oil companies and the full-service Bank of Cairo.
The head of the Majlis Economic Commission, Mohammad Reza Pour-Ebrahimi, has urged the insurance regulator to spearhead a drive to hire younger executives for management positions.
Bank Mellat is planning to sell its 20% stake in Asia Insurance as part of plans to shed excess or non-banking assets, and streamline operations.
Iran’s authorities have eliminated over-the-counter (OTC) medications such as analgesics, antihistamines, cough medication, from the list of drugs eligible for insurance reimbursement.
The head of Iran’s Insurance Institute has said that public awareness and demand for high-quality and safe housing should be increased, adding that residents should be aware of the risks of accidents and disasters.
Direct insurance premiums in Kuwait grew by 34% to KWD233 million (US$771.2 million) in the first half of 2017, compared to KWD173 million in the corresponding period a year ago, official data show.
The Minister of Health Dr Jamal Al-Harbi has said that his ministry has referred draft legislation on insurance against medical errors to the Fatwa (Legal Advice) and Legislation Department of the Cabinet.
Almost 20% of Moroccans subscribe to at least one type of insurance, according to a recent survey by market research specialist Kantar TNS (Taylor Nelson Sofres).
The insurance intermediary sector faces multiple challenges related in particular to regulatory developments and the digital revolution, said Mr Hassan Boubrik, President of the Insurance and Social Insurance Supervisory Authority.
The Moroccan government is starting an insurance experiment in using a parametric trigger or index-based insurance.
Omani insurers have achieved a marginal 0.3% growth in direct gross premiums to OMR358.2 million (US$931.6 million) for the first three quarters of 2017.
The insurance industry is forecast to generate premiums totalling US$240 million and pay out $170 million dollars in compensation last year, said Mr Anwar Al-Shanti, Chairman of the Palestinian Insurance Federation.
Qatar’s GWP is expected to grow by more than 9% a year to reach US$4.6 billion by 2021, compared to the estimated $3.1 billion in 2017 and $2.9 billion in 2016, as the rising population continues to drive the demand for health, motor, property and other retail cover, while strategic economic diversification plans help enhance the base of assets available for underwriting, according to a report by Alpen Capital.
Doha Insurance Group has launched its new brand identity as part of the company’s ongoing expansion strategy to strengthen its position as one of the “most innovative, customer-focused and pioneering” insurers in the region and beyond.
The Tunisian Federation of Insurance Companies (FTUSA) is considering setting up an organisation to fight insurance fraud, according to the insurance body’s Executive Director, Mr Kamel Chibani.
Nine in 10 motorcycles, numbering around two million, that travel on the roads in Tunisia are uninsured, according to the Executive Director of the Tunisian Federation of Insurance Companies (FTUSA) Kamel Chibani.
The Tunisian insurance market grew by 10.65% reaching TND1.86 billion (US$752 million) in premiums in 2016, according to the annual insurance report published by the Tunisian Federation of Insurance Companies (FTUSA).
The premium ceiling for compulsory motor third-party liability insurance will be increased by 5% at the start of the new year and by another 5% in the second half of 2018.
The UAE Insurance Authority (IA) will require reinsurers to be public shareholding companies with at least 51% of the capital to be owned by UAE nationals, GCC nationals or by legal persons fully owned by UAE nationals or GCC nationals, according to draft regulations on reinsurers promulgated by the regulator.
The Federal National Council has passed amendments to the law on the Insurance Authority (IA) that, among other measures, empower the regulator to set up specialised committees to resolve insurance disputes.
Pacific Prime Insurance Brokers has opened its own office in Dubai after several years of working through a partnership in the emirate.
Chaucer, the international specialty insurance group, has opened Chaucer MENA Underwriting in the DIFC to support Middle Eastern and North African business. The office will write a broad range of specialty insurance and treaty business through Syndicate 1084 at Lloyd’s.
The Dubai Health Authority (DHA) has launched Basmah, an initiative for screening and treating cancer.
More should be done to increase demand for marine insurance, which is considered very important in the UAE because of its role in supporting trade, said Mr Ayman Khamis, General Manager of Sharjah Insurance Company and Chairman of the Marine Insurance Technical Committee of the Emirates Insurance Association (EIA).
Souqalmal.com, UAE’s leading comparison website, has signed a partnership agreement with Takaful Emarat to sell the Islamic insurer’s mandatory health insurance products via Souqalmal’s comprehensive digital platform.
Global
Global insured losses from disaster events in 2017 were around US$136 billion, up from $65 billion in 2016, well above the previous 10-year annual average ($58 billion), and the third highest on sigma records, said Swiss Re.
A new report by the International Regulatory Strategy Group (IRSG) in collaboration with Linklaters, urges a review of the UK’s rule making system for financial services post-Brexit.
Takaful
The global takaful sector has grown at an annual rate of 9%, in line with growing international interest and contrbutions are expected to reach US$52.5 billion by 2020, according to a report released by the Dubai Centre for Islamic Banking and Finance (DCIBF).
Regulatory changes in some GCC countries have pushed up insurance prices, particularly for motor and medical cover, improving the underwriting profitability of the region’s insurers, including takaful operators, said Moody’s Investors Service.
Solidarity Group Holding has announced the successful completion of the merger between its two Bahrain-based subsidiaries Solidarity General Takaful and Al Ahlia Insurance Company.
Malaysia-based Islamic Financial Services Board (IFSB) has approved the admission of eight organisations from across the globe, including two from the UAE and one from Saudi Arabia, into the IFSB membership.
Long-awaited rules for takaful are expected in the first half of 2018, according to industry players.
The Saudi Arabian Monetary Authority (SAMA) is making it mandatory for insurers to include coverage against natural disasters for vehicles in their motor comprehensive policies, especially against damage caused by floods, rain, and cold weather.
The Saudi Arabian Monetary Authority (SAMA) has directed insurers to issue or renew policies for shops only after confirming the existence of surveillance cameras in the commercial establishments.
Takaful Emarat has acquired Al Hilal Bank’s takaful unit in a deal that will create the biggest takaful entity in the UAE, based on 2016 contribution figures.
Emirates Retakaful has announced changes in the senior management team and that it is looking at a potential sale of the company.