The insurance markets of the Middle East and Northern Africa are expected to continue to outgrow the region’s GDP over the next 12 months, according to the MENA Insurance Pulse 2018, published by Dr. Schanz, Alms & Company.
Around 45% of respondents in MENA have been a victim of at least one form of financial crime within their global operations during the 12 months preceding a survey conducted by Thomson Reuters. Globally, 47% had fallen victim.
While GCC insurance markets are generally still profitable, the trend of decreasing profitability is expected to continue in 2018 and 2019, said S&P.
German insurer Allianz Group has signed an agreement to acquire a stake of 8% in Africa’s leading reinsurer Africa Re. The acquisition makes Allianz one of the largest shareholders of the Lagos-headquartered reinsurer.
The insurance sector in Algeria is forecast to grow by 5-6% this year, according to the Algerian Union of Insurance and Reinsurance Companies (UAR).
The development of life and health insurance faces several challenges, including neglect of privately held local insurers, according to Mr Mohamed Hakim Soufi, CEO of privately owned life insurer Macir Vie.
State-owned insurers are allowed to underwrite credit risk for businesses to an unspecified amount, while privately held insurers are limited to underwriting risk amounting to less than DZD500m ($4.3m), according to a document issued by the Foreign Bank of Algeria (Banque Extérieure d’Algérie or BEA) that has been made available to the local media. BEA is Algeria’s biggest public bank.
Bahrain’s King Hamad bin Isa Al Khalifa has recently ratified the National Health Insurance Law that paves the way for comprehensive health coverage for all citizens.
The unified comprehensive motor insurance contract, now being finalised by the Central Bank of Bahrain and Bahrain Insurance Association (BIA), will be issued in the middle of the year.
Bahraini independent corporate insurance brokers and risk advisers, Bridge Insurance and Reinsurance Brokers, has announced the launch of its operations in the kingdom, having obtained approval from the Central Bank of Bahrain.
The Financial Regulatory Authority (FRA) has approved an insurance policy for crops, which would be the first product of its kind in the country, said media reports.
The Financial Regulatory Authority (FRA) has started to look into mechanisms that will enable it to achieve its strategy of doubling the premiums of the insurance sector over the next four years. It is considering deepening cooperation between insurers and e-payment companies by allowing the latter to distribute insurance policies, instead of merely collecting premiums.
The Central Agency for Public Mobilisation and Statistics (CAPMAS) has revealed that the life expectancy at birth of women in Egypt was 73.6 years, compared to 70.8 years for males, in 2017.
Insurance industry players have held a meeting to discuss the impact of a weaker rial following the 8 May announcement by US President Donald Trump that the US was pulling out of a 2015 international nuclear agreement with Iran.
Global insurers are taking stock of how the US withdrawal from the 2015 international nuclear agreement with Iran could affect them, and rethinking their dealings in Iran, reported Reuters.
The Jordan Insurance Federation (JIF) has rejected a draft income tax law that, if passed, would hike the tax rate on insurers from 24% to 40%.
The Insurance Control Commission (ICC), which is part of the Ministry of Economy & Trade, now requires private health insurers in Lebanon to renew medical insurance cover with the same terms and conditions as at the time of the initial subscription to the policy, regardless of age or state of health, said media reports.
The National Federation of Insurance Agents and Brokers in Morocco (FNACAM) has reportedly demanded that insurers pay intermediaries more for placing business with the latter.
The two insurance broking companies listed on the Casablanca Stock Exchange, namely Afma and Agma Lahlou-Tazi, have shown good financial performance during 2017.
Saham Finance has denied media reports that there has been undue delay in completing its sale to South Africa’s biggest insurer Sanlam that was announced on 8 March.
Oman Re has posted profits of OMR233,200 ($606,502) for the first quarter of this year, 15.5 times more than the OMR14,100 reported for the corresponding quarter in 2017.
Oman’s insurance regulator Capital Market Authority (CMA) has urged insurers to expedite the settling of claims for the losses due to Cyclone Mekunu, which hit the sultanate in late May. It was the strongest ever recorded to lash southern Oman and the sultanate’s third-largest city of Salalah.
Although Qatar’s dispute with its neighbours has not escalated, it appears to be no closer to being resolved a year after a blockade was imposed on it by several Arab neighbours, said Fitch Ratings.
The Tunisian Federation of Insurance Companies (FTUSA) has signed an agreement with the Tunisian Association of Banks and Financial Institutions (APTBEF) on life insurance taken up in connection with credit extended by lenders.
A pool for credit insurance for SMEs with a cap on premiums is currently on the agenda of the government and insurers. Around 25 insurers will participate in the pool, according to local media reports.
Turkish car leasing company Borlease Otomotiv has purchased Magdeburger Sigorta from German insurance group Allianz.
The insurance sector in the UAE has registered an overall top-line growth of 6%, while net profit grew by 21% to AED568m ($154.7m) in the first three months of this year from AED469m in the corresponding quarter in 2017, according to the 1Q18 Performance Periodical by Insurance Monitor.
The UAE Insurance Authority (IA) has said that all insurers and takaful operators need to obtain its authorisation before they sell products through banks.
The UAE Cabinet has adopted a number of strategic decisions with regards to foreign workers’ insurance in the private sector, as well as a legislative package of visa facilitations.
A new regulation issued by the UAE Insurance Authority (IA) is expected to result in a significant decrease in the number of insurance consultants in the country, said a law firm.
Traditional industries such as the insurance sector need to quickly adapt to meet the demands of the UAE’s rapidly emerging sharing economy or their services will run the risk of not being fit-for-purpose, said global insurer AIG in a white paper.
Around 85% of respondents in the UAE feel that they are still not saving enough for their future, according to a new poll from investment company National Bonds. On a brighter note, this proportion is four percentage points lower compared to a similar survey conducted in 2016.
Most insurers operating in the local market refuse to provide comprehensive motor insurance for certain types of vehicles.
Health at Hand, a free-to-download app that connects doctors with patients to conduct consultations via video, has been officially launched in the UAE.
Global
Insurwave, the world’s first marine insurance blockchain platform, is now ‘live’ for commercial use. It will transform how global businesses in the marine industry manage risk across their organisations, and how they work with brokers and the insurance industry, said its participants in a statement.
The civil fines for non-compliance with the EU General Data Protection Regulation (GDPR), which came into effect on 25 May, can reach up to EUR20m ($23.2m), or up to 4% of a group’s annual global turnover if higher, but organisations across Europe should not expect to have their insurance cover them, according to a guide titled ‘The price of data security’ by Aon and DLA Piper.
The M&A scene for insurance is set to remain vibrant for the next 12 months following a ‘solid’ first quarter of deal making in 2018, according to EY.
The rate of growth of the global reinsurance industry is set to outpace the global economy in 2018 and 2019, with average annual premium growth forecast at 5.3%, compared to global GDP growth of 4.9%, according to Munich Re’s latest Insurance Market Outlook.
Takaful
The global Islamic finance industry has surpassed the $2tn-mark in assets across its three main sectors – banking, capital markets and takaful, according to the Islamic Financial Services Industry Stability Report 2018 released by the Islamic Financial Services Board (IFSB).
Syarikat Takaful Malaysia (STMB) has announced the conversion of its composite licence to single licences and splitting of the company into two entities to operate its family takaful and general takaful businesses separately.
Bank Negara Malaysia (BNM) has issued an exposure draft setting out a proposed approval process and other requirements for the offering of trade credit insurance and trade credit takaful.
The General Insurance Association of Malaysia (PIAM), Life Insurance Association of Malaysia and Malaysian Takaful Association announced that life and general insurance companies and takaful operators in Malaysia will not be charging the Goods and Services Tax (GST) effective 1 June 2018, reported the New Straits Times.
Insurance industry players are preparing for the introduction of takaful in Morocco in 2019. However, the long-awaited launch of Islamic insurance in the kingdom is still subject to a tedious regulatory and shariah process, even though takaful is seen as essential to building a participatory financial ecosystem in Morocco, reported Le Boursier.
Shareholders of Saudi Enaya Cooperative Insurance Company (Enaya) approved a capital reduction of 50% during an extraordinary general meeting (EGM) in June.
Moody’s has assigned an A3 insurance financial strength rating (IFSR) to Saudi Re, with stable outlook.
Haj and umrah pilgrims will be offered a comprehensive insurance plan during their visits to Saudi Arabia by next year, minister of haj and umrah Muhammad Saleh Benten has announced.
Dubai Islamic Bank had a successful closing to its capital-raising programme with the issuance of 1.6bn additional shares priced at AED3.11 per share. The bank, which offers auto takaful products among others, had aimed to boost its core capital by over AED5bn ($1.4bn).