The Arab insurance industry remains vibrant and attractive, with new entrants and investors willing to pump in capital, said Mr Khalil. Around 15 new companies, supported by regional or international capital, were established in the Arab region in 2015, supporting premium growth which reached to around US$34 billion by the end of last year. “GAIF today has more than 350 members, in addition to the various insurance federations and associations.”
He expects the regional insurance industry to keep growing in terms of number of players and premium size in 2016. “The interest in our markets will continue and this will fuel competition among providers to expand their businesses and improve their results. All this will be reflected positively in the size of premiums and hopefully, in the well-being of our Arab insurance market.”
Living up to the challenge
Mr Khalil observed that GAIF is fortifying its role as a pan-Arab insurance organisation which aims to help operators achieve the most of the region’s capabilities and benefit from the massive opportunities despite the growing challenges. “The Arab world today is facing serious challenges in terms of social, political and other difficulties. However, this is not confined to our region as the global economy is also going through a downturn.”
He added that the theme of this year’s GAIF General Conference in Beirut, “The Future Challenges of the Arab Insurance and Reinsurance Companies”, is a result of the tough environment affecting economies and businesses. “Therefore, we have invited speakers from the international insurance market and major global organisations. The event also tackles timely issues such as oil and gas, digitalisation, and the future of reconstruction of the Arab world.”
Beirut is ready to welcome guests from the regional and international insurance markets, said Mr Khalil. He said that besides looking for solutions to overcome issues within the industry, the GAIF Conference will be an opportunity for the Arab insurance society to meet, revive relationships and exchange experiences.
“We look forward to a successful conference as a continuation to the series of GAIF’s General Conferences. This gathering is a translation of our dream to achieve the highest level of integration and for the region’s practitioners to maximise their benefits.”
Tackling the industry’s issues
GAIF keeps abreast with the Arab markets’ needs and looks into solving the issues of concern, noted Mr Khalil.
He said that GAIF recently participated in the Arab Forum of Insurance Regulatory Commissions (AFIRC) Conference in Tunis last month, where a main area of discussion was on how to facilitate Arab reinsurers’ businesses within the region where ratings continue to hinder their expansion.
“Arab reinsurers have proved their reliability and commitment over the years. Therefore, regulators should ease their limitations, especially their rating requirements, to facilitate players’ access to Arab markets as a matter of national interest,” said Mr Khalil. The Association of Arab Reinsurers, a GAIF committee, met with Arab regulators in Tunis to look into this issue and come up with possible solutions, he said.
Another related plan is to set up an Arab rating agency to act as a reliable and on-the-ground body aiming to provide precise evaluations of the region’s players, he noted. “This has been planned for some time, but it still needs a lot of work and coordination to come to reality. However, we will continue to search for better ways to achieve this goal.”
Mr Khalil said GAIF is growing in size and importance, with recognition from private and official bodies within the region and internationally. “The Arab League and the Arab Economic Counsel recognise GAIF as a large institution and we are looked at as a reliable voice of Arab insurance providers.”