Premiums of the Algerian insurance market grew 2.4% om 2016 to DZD133.9 billion (US$1.2 billion) [including international acceptances], compared to the previous year, said Mr Abdelhakim Benbouabdellah, Secretary of the National Insurance Council and Mr Brahim Djamel Kessali, President of Algerian Union of Insurance and Reinsurance Companies at a media conference.
The return on equity in the Bahraini P&C insurance industry is estimated to average about 5% annually in the 2016-18 period, nearly unchanged from 2015, but down from an annual average of 7.4% of the 2011-15 period, according to S&P Global Ratings in a recent report.
The Federation of Afro-Asian Insurers and Reinsurers (FAIR) is holding its 25th Conference in Bahrain. This will be the first time the biennial conference is hosted in the Gulf region in the organisation’s 53-year history.
The magnitude-5.7 earthquake which struck Iran on 13 May and its aftershocks over the following days have damaged 40% of residential buildings in Bojnurd County, North Khorasan Province.
Road fatalities impose a daily loss of IRR320 billion (US$9.9 million) on Iran’s economy, amounting to around 8% of the country’s GDP for the whole year.
State-owned Export Guarantee Fund of Iran (EGFI) has issued export insurance and guarantees worth US$1.6 billion in the fiscal year which ended on 20 March 2017, marking a 71% growth y-o-y, said the head of the export credit agency.
Six of the 32 insurers operating in Kuwait are predicted to quit the sector shortly for several reasons, including insolvency, according to Mr Yousef Fraih Al Harbi, Chairman and Managing Director of United Insurance.
Senior officials from the General Traffic Department (GTD) are considering slapping a KWD2 (US$6.57) fine for each day that a motor insurance is renewed late.
The Ministry of Health is working on establishing an electronic system for collecting health insurance premiums from expatriates, in consideration of the upcoming expiry of the contract with the Public Services Company, which has been in charge of collecting insurance fees.
Morocco’s Supervisory Authority of Insurance and Social Security (ACAPS) is considering a major reform of the Insurance Code to keep pace with transformations brought about by the digital revolution in which some Moroccan insurers are already engaged in.
Mr Mehdi Tazi, the former CEO of one of Morocco’s largest insurers, Saham Assurance, has become a majority shareholder of Belassur, one of the country’s 10 biggest insurance brokers.
More than 25% of Moroccans do not have access to medical care, exposing the shortfalls in health insurance plans, according to the World Bank 2017 Economic Memorandum.
Wafa Assurance has maintained its top position in the Moroccan insurance market in terms of premiums for the ninth consecutive year last year, when it reported a turnover of MAD7.3 billion (US$743.8 million), an increase of 14.2% over 2015.
Morocco is currently in the process of finalising the design of a new agricultural insurance model which focuses on index or parametric cover.
National Life & General Insurance has achieved a record GWP of OMR101.2 million (US$262.9 million) for the 2016 financial year, making it the largest composite insurer in the country.
Arabia Insurance in Oman and Falcon Insurance have merged to form a new entity – Arabia Falcon Insurance Company (AFIC), consolidating the strengths of the two former insurers.
Gross premiums in the Qatari P&C sector are forecast to grow by up to 10% annually over the next two years, according to S&P Global Ratings.
QIC Group recorded 15% growth in GWP to US$849 billion in the first quarter of 2017 compared with the same period last year, on the back of solid expansion across its key geographical markets, lines of business and client segments.
The African Development Bank Group (AfDB) has approved a US$18.15-million facility to the Government of South Sudan (GRSS), to assist the country with the required resources for its application to join the African Trade Insurance Agency (ATI) and Trade & Development Bank (TDB). This is a critical step and a prerequisite for the respective institutions to commence their operations within South Sudan.
Compulsory motor third-party liability premiums have been raised with effect from 8 May, according to a circular published by the Ministry of Finance.
Insurance agents and executives in Tunisia are receiving a salary increase averaging 6.8% for the years 2016 and 2017, under a collective agreement signed in April.
The overall insurance sector in Turkey posted a 15.7% increase in premiums for the first quarter of 2017 to TRY12.4 billion (US$3.5 billion), according to data from the Turkish Insurance Association. This was despite a 2.4% increase in motor liability insurance premiums which accounted for around 25% of total market share.
The UAE Insurance Authority (IA) is pushing ahead with tough new regulations to transform the way savings, investment and life insurance policies are sold, offering investors better protection.
Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, has ordered the scrapping of a 20% co-payment requirement for Emiratis who undergo private medical treatment.
The UAE Insurance Authority (IA) is looking into establishing two separate funds, one for policyholders’ protection and the other for victims of motor accidents hit by unidentified vehicles or drivers who do not have motor third-party liability insurance.
Insurers in the UAE are forecast to report an increase of 25-35% this year in profits to around AED1.5 billion (US$408.4 million).
Abu Dhabi Global Market (ADGM) has created a new talent hub in the emirate specifically for financial services. This initiative is aligned to the strategic objectives and lifestyle of the international financial centre with a clear vision of positioning Abu Dhabi as a regional centre of excellence for financial services talent development.
Orient Insurance has captured a substantial 35% of the overall profits of the insurance market in the UAE, with a net profit of AED314 million (US$85.5 million) last year, according to S&P Global Ratings.
About 41% of millennials (those born between 1980 and 1997) have not started saving for their retirement, compared to 35% of Gen X (those born between 1966 and 1979) and 29% of baby boomers (those born between 1945 and 1965), according to new research from HSBC.
The most popular features among UAE consumers when purchasing car insurance were agency repair and personal accident cover for drivers and passengers, according to a recent study by dubizzle Motors and Souqalmal.com.
New driving licences in the UAE shall be issued only for a period of two years, under recent amendments to federal traffic laws. After that, renewed licences shall be valid for 10 years for UAE citizens and five for non-citizens. The changes will take effect from 1 July and are seen as a move to promote road safety.
Zurich International Life Limited (Middle East) and Standard Chartered Bank have signed an exclusive 10-year distribution agreement to offer life insurance in the UAE.
Global
The WannaCry ransomware attack in over 150 countries has revealed the widening scope of corporations’ cyber risk exposures, and this is likely to increase the demand for related insurance protection, Fitch Ratings said.
Scor said it is combining its Paris-London and Zurich-Cologne hubs to create an EMEA (Europe, the Middle East and Africa) Hub, to streamline the reinsurance group’s operations in the EMEA region.
Takaful
The global takaful industry recorded a growth of 12% in contributions last year, while conventional insurance premiums grew by 4%. Despite the high growth rate, takaful is by volume still a small industry with total contributions of US$25 billion and 305 takaful and retakaful operators and windows, according to the annual Islamic Financial Services Industry Stability Report 2017.
The Tune Protect Group has obtained the approval of the Labuan Financial Services Authority to establish a retakaful window within its wholly-owned unit, Tune Protect Re, to penetrate the ASEAN travel retakaful sector.
Allianz Malaysia Berhad (AMB) has discontinued its talks to purchase a 100% stake in HSBC Amanah Takaful (Malaysia), according to a statement filed with the Kuala Lumpur stock exchange in late April.
BIMB Holdings, the parent company of Malaysia’s oldest Islamic bank, is considering a sale of a stake in its listed insurance unit amid a strategic review of its businesses, reported Bloomberg citing people with knowledge of the matter.
Allianz EFU Health Insurance, the first specialised health insurer in Pakistan, has introduced takaful window operations.
Technical and managerial jobs in the insurance sector will be soon localised, according to Dr Ahmed Abdulkarim Alkholifey, Governor of the Saudi Arabian Monetary Authority (SAMA).
Bupa is planning to increase its shareholding in Bupa Arabia from 26.25% to 34.25%, in a deal worth almost SAR1 billion (US$266.6 million).
The Council of Cooperative Health Insurance (CCHI) has confirmed that it will be enforcing its requirement for health insurers in Saudi Arabia to offer a minimum network of accredited health service providers.
The Saudi insurance industry posted underwriting profit of SAR2,117 million (US$564.4 million), 120% more than the SAR963 million reported in 2015, according to “The Saudi Insurance Market Report” for 2016 released recently by the Saudi Arabian Monetary Authority (SAMA).
Funding needs in the healthcare sector are expected to rise over the coming years, given the increasing number of accidents, smoking and obesity rates in the kingdom, said Health Minister Tawfiq Al-Rabiah. He estimated the amount required to be about SAR250 billion (US$66.7 billion) by 2030.
Insurers are asking the authorities to link the renewal of motor licences with insurance renewals on an annual basis to reduce motor insurance losses.
FNB Islamic Banking has launched takaful services, with products for commercial, vehicle, personal, corporate and household cover.
The Sudanese Parliament has approved the Insurance Control Act of 2016, that among other provisions, allows foreign insurance companies to obtain a licence to operate in the country.
Abu Dhabi National Takaful, a leading takaful operator in the region and the only Islamic insurer worldwide with a Financial Strength Rating of A - (Excellent), has reported a net profit of AED48.4 million (US$13.2 million) for 2016 up 16.4% y-o-y.
Dar Al Takaful, listed on the Dubai Financial Market (DFM), has undertaken a rights issue to raise its capital to AED150 million (US$40.8 million) from AED100 million by issuing 50 million shares. The rights were tradable on the exchange from 25 April through 8 May.