Longstanding MENA reinsurers continue to ride competitive pressures and carve out market niches to support their operations. They are steadily making sound returns, but return on equity (ROE) hovers around the mid-single digits, said A.M. Best in its annual commentary on the global reinsurance sector.
The Middle East remained the fourth-largest ultra-high net worth (UHNW) region in 2017, just ahead of Latin America and the Caribbean, but recorded by far the weakest growth both in its ultra-wealthy population (up 4.4%) and combined net worth (up 4.8%), according to the latest edition of Wealth-X’s World Ultra Wealth Report.
The Gulf region has witnessed a concerted shift in employers moving from a pure-pay model to an emphasis on ‘total rewards’ for staff, said Aon in a new study on allowances and benefits in the GCC.
A Bill to amend Algeria’s insurance law was submitted to lawmakers during the 2018/2019 parliamentary session, which began in September. The legislative amendments aim to modernise the Algerian insurance industry, reported El Moudjahid.
Two Algerian government-owned loss adjusting firms, the Algerian Society of Automotive Technical Expertise and Control (SAE-EXACT) and Société Expertise Algérie (EXAL), will merge to create an expertise group, Mr Nacer Sais, CEO of the National Insurance Company (SAA), has announced.
The overall risk level of the property and casualty (P&C) insurance sector in Bahrain has been assessed as ‘moderate’ with the country risk deemed ‘high’ by S&P Global Ratings.
LIC International, India’s state-run Life Insurance Corporation’s (LIC) subsidiary in Bahrain, has signed a strategic MoU with UAE-based management and financial consultancy firm IBMC International for marketing its life insurance and investment products in the UAE.
There is greater interest among insurers in agricultural insurance following the allocation of EGP2.6bn ($145.4m) for agricultural projects by the government for the current fiscal year ending June 2019, said media reports.
Tharwa Capital is awaiting final approval from the Financial Regulatory Authority (FRA) for licences for two insurance companies, one a general insurer and the other a life insurer.
Egypt is preparing to implement the first compulsory insurance law for tourists, to boost confidence in Egypt as a destination.
The newly-appointed head of the Central Insurance of Iran (CII) is exploring ways of divesting the shares of the sole 100% state-owned insurer, Iran Insurance Company (IIC).
International trade credit insurers are winding down the little business they had reinstated in Iran since 2016, in the wake of the re-imposition of US sanctions against Iran since 6 August.
International General Insurance Holdings (IGI) hosted Jordan’s first Dive In Festival in Amman on 26 September, under the name ‘Glassed In Dive In’. The festival included a discussion led by Ms Mayyada Abu-Jaber, one of Jordan’s foremost advocates for women empowerment, on increasing the value of women in the workplace.
Insurers saw their combined net profit increase by 19.7% to $167m in 2017, according to the annual report published by the Insurance Control Commission (ICC), attached to the Ministry of the Economy and Trade.
The $1.05-bn Saham-Sanlam deal has received all the necessary approvals from regulators, reported Médias24 citing unnamed sources. This means all authorisations have been obtained for all the African countries concerned, including Morocco.
Authorities in Oman may look at implementing the proposed mandatory health insurance scheme in stages, taking cues from the UAE and Saudi Arabian markets, according to a senior official of an international law firm.
Insurers are being more vigilant over fire claims and have partially suspended accepting factory owners as their clients.
Half of the total insured housing in Turkey is located in the region with the highest earthquake risk, according to data from the Natural Catastrophe Insurance Pool which provides DASK or compulsory earthquake insurance.
UK-headquartered Bupa, the international healthcare company, has agreed to acquire Turkey’s second-largest health insurer, Acibadem Sigorta, subject to regulatory approvals. The purchase would mark Bupa’s entry into the Turkish health insurance market.
Turkish life and non-life insurers’ credit quality has deteriorated as a result of the country’s macroeconomic instability and the large fall in the value of the Turkish lira, Fitch Ratings said.
The UAE Insurance Authority (IA) is in the process of establishing a sophisticated electronic financial database on the insurance industry that would facilitate its supervision of the sector in accordance with international best practices.
Net profit posted by the local insurance sector in the UAE surged by 40% to AED994m ($270.7m) for the second quarter of this year from AED712m for 2Q17, according to the 2Q18 Performance Periodical by Insurance Monitor.
Some insurers have said that their ability to compete in the market of bank customers in the UAE, which exceeds 6m individual and corporate customers, is very limited and does not depend on the prices nor quality of services provided by insurers.
Dubai-based FinTech Hive, a top fintech accelerator, has launched the 2018 edition of its accelerator programme in partnership with Accenture. Out of the 300 applications, 22 finalists have been selected.
Obesity among youngsters is rising drastically in the UAE, alarming doctors who call on parents to be vigilant about what they are feeding their children.
Global
The reinsurance sector’s return on capital is expected to increase to around 6%-8% by year-end 2018, said S&P Global Ratings. However, this remains close to reinsurers’ cost of capital, which the ratings agency anticipates will increase modestly through the rest of 2018 and in 2019, remaining within the 7%-8% range.
Some of the current improvements in the overall market environment offer a chance for the insurance sector to embrace new market dynamics, such as the increased use of digital solutions, said Swiss Re in a statement released in Monte Carlo during the Les Rendez-Vous de Septembre.
The Global Federation of Insurance Associations (GFIA) has said that there is a pressing need for more dialogue between insurers, supervisors and the International Association of Insurance Supervisors (IAIS) to achieve a balanced approach that encourages and supports innovation, while assuring legal compliance.
Takaful
Morocco is preparing for the introduction of Islamic insurance, possibly by 2019, though no official timeline for the launch of takaful has been set.
Islamic insurer Tamkeen Insurance has officially opened its headquarters in the city of Ramallah, launching its services in end-September.
Takaful Emarat has started using Apple’s Device-as-a-Service (DaaS) in its drive towards a paperless working environment, reported Arabian Industry. The company’s sales and back office staff now have the latest Apple devices to carry out their work.
The Takaful Rendezvous 2018, organised by Asia Insurance Review, will be held on 9-10 October in Kuala Lumpur, Malaysia.