The summer heat reigns, stretching Eid celebrations longer in the backdrop of diplomatic tensions within the region. It all seems back to business as usual.
In this combined July-August edition, we get the chance to review the place of the MENA region in the global market context. The largest market in MENA, the UAE is only the 39th biggest in the world with US$10.23 billion in premiums and has 0.22% of global market share. This is the findings by Swiss Re’s latest sigma report that is the first comprehensive comparative listing of all market premiums for 2016. In North Africa, the largest market Morocco came in 49th, accounting for $3.56 billion and 0.08% of global premiums.
Still on numbers, the fastest-growing life market was Morocco with a 34.3% surge compared to the global average of 2.8%. On the non-life side, Iran saw the fastest growth of 7.6% against world average of 3.1%. In terms of insurance density, Qatar took the lead in the region with a per capita spend of $1,288 (the world average being half that). By penetration, Morocco came in top in MENA with premiums accounting for 3.48% of GDP.
The last point I make on these sigma figures is that Egypt, the most populous market in the region with 93.3 million people, has the largest slice of the life mix in its premium pie with life accounting for 48% of its $2.13 billion GWP.
The numbers say it all. There are great opportunities in the region. They just need the right mechanisms and salvos to unleash the potential, and we have a whole range of news and developments covered that show even regulators are active in getting the markets to realise their full potential.
Our Cover Story is on Nat CATs with the focus on quakes and floods, a better understanding of the real perils faced, and the need for better and more active models for the region as part of the move to close the protection gap.
In this edition, our Country Profile looks at Lebanon which is steadfastly on the right track with bold initiatives with an eye on international standards and best practices.
With all the tech-talk and InsurTech gaining ground and seeing as an existential threat to change-resistant incumbents, we also bring you a special on cyber risks to get the right strategies in place. Cyber threats are real to all, and insurers must know the full extent of the exposures assumed. There are no freebies in cyber.
We also bring you several must reads, especially a life and health focus managing unstructured data for insurers to move from claims payers to wellness providers and a piece on the IFRS 17 being so much more than just an accounting change.
On the takaful front, we look at the fitful stories in London and make a bold prediction that takaful can survive anywhere as long as the players can conscientiously differentiate themselves and adopt discretionary models that effectively respond to clients’ needs.
Time does fly and already the region is abuzz with the plans for the big FAIR being planned in Bahrain. Registrations are rolling in fast and, as usual, the business attitude is just inspiring despite the diplomatic tensions, wars and terrorist struggles.
All the best for the second half of the year fraught with changes for better or worse.
Sivam Subramaniam
Editor-in-Chief
Middle East Insurance Review