It is November and time for the Dubai Rendezvous where we try to bring the world of reinsurers and those seeking reinsurance protection to Dubai. We even ambitiously set the theme as “Reinsurance as the Game Changer in the Market”.
Being actively involved with both the direct and primary insurers on one hand and the reinsurers on the other hand, we do see that reinsurers are trying very hard to make themselves more relevant to their clients while at the same time facing new pressure to reduce reinsurance commissions to both cedants and brokers, amid headwinds of depressed investment returns and persistent super low interest rates leading to low ROEs. Primary insurers see the reinsurers as their rock of success, stability, and sustainability in the face of the regulatory changes and increasing risks even in cyber, Nat CATs, political or terrorist risks.
In line with Dubai Rendezvous, our Cover Story this month is on reinsurance given the urgency of the renewals and the search for reinsurance protection which is likely to increase further as the private sector gets more involved in economic development. But rates continue to be under pressure with excess capacity and innocent players still lurking around even as reinsurers grapple with profitability issues.
Our Country Profile is on the UAE, one of the largest in the region where the listed insurers are seeing positive returns this year even as they face regulatory changes that everyone believes will lead to long term stability. But there are already calls for the need for new products to create further growth as the traditional lines of business are nearing saturation. But life is still full of hope especially in the individual sphere where there is an urgency to build awareness.
On takaful, even as the calls to standardise terminologies and operating models increase, we venture into the challenge of making takaful fit for the new world by engaging Gen-Y as well as using technology to better serve the customers.
On healthcare in the region, even as the pie is increasing with more markets embracing compulsory covers, there is still a gap in communicating with the public and with enforcement agencies. We bring you a round-up on the 10th ME Healthcare Insurance Conference where the stress was on “innovative solutions” and better use of technology in the insurance healthcare system. It is happening.
In our stock of specials, we bring you a host of operational and strategic reads on MNC risk management programmes; using technology in fraud detection; being on the lookout for insolvencies in trade financing in Asia arising out of the Hanjin debacle; and getting brokers to go for fee-based system to force them to offer value-adds beyond just sales and placement.
It’s November, and the time to salute the best of the crop in the industry. With more than 230 entries, we now have some 48 finalists awaiting the results to be announced on 8 November at the 3rd Middle East Insurance Industry Awards (MIIA) Gala Dinner. The winners will carry the weight of raising the bar for the industry. Good luck to all the finalists who each had an interesting narrative to impress the 20 judges.
Here’s wishing a good renewal to all. May you find the right partner for the long haul.
Sivam Subramaniam
Editor-in-Chief
Middle East Insurance Review