Magazine

Read the latest edition of AIR and MEIR as an Interactive e-book

Dec 2022

The insurance world in 2023


Significant challenges ahead

The insurance industry in the MENA region continued to witness reasonable growth despite the competition in the large number of both commercial and takaful insurance companies.
 

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Actuarial trends and challenges

UAE and KSA, the two largest markets in GCC, are showing a reduction in underwriting profitability as most of the insurers are just competing on prices.
 

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Growth economies spell insurance opportunities

Economic activities and investments in traditional as well as new generation industries continue to pour into the Middle East, attracting investors and lenders from across the globe.
 

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A solid regional footprint is essential for customers and a strong growth enabler

The GCC region’s insurance market has always been a captivating one. Analysis from S&P Global shows that GWP in most GCC countries picked up in 2021 and into the early part of 2022.
 

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Capitalising insurance markets for the big challenges ahead

Since 2009, the insurance industry has become used to the level of dedicated reinsurance capital rising every year.
 

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Expectation of market growth again

The Egyptian insurance market has seen an increase in GWP during the last five years. Total market GWP has grown 100% during the period from June 2017 to June 2021.
 

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Decoding new industry norms for sustainable growth

It has been a challenging task for most insurers over the past year to gear up for IFRS17 and prepare the necessary impact assessments according to the new disclosure templates.
 

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Solid growth for non-life sector

We are expecting solid growth for the non-life insurance industry in the Middle East region in 2023, driven by two factors.
 

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Aligning IFRS17 with business needs

The most significant change for the actuarial function in 2023 will be alignment with IFRS17 from a business-as-usual perspective.
 

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Inflation and climate change

The majority of insurance companies have proven to be remarkably adaptable and resilient over the past few years in the face of a variety of challenges, especially the impact of the pandemic and the economic fallout from the Russia president Vladmir Putin’s invasion of Ukraine conflict.
 

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Trends and challenges in GCC non-life insurance

The GCC insurance market is facing a number of challenges. These includes worldwide economic and political uncertainties driving overall reduced risk appetite of insurers and reinsurers; accelerating inflation rates affecting pricing of short tail lines; increased sanctions following Russia president Vladimir Putin’s invasion of Ukraine and Russian sanctions leading to more granular contract exclusion discussions; more scrutiny on the wording used, where reinsurers seek greater clarity of definitions; and a noticeably decreased appetite by reinsurers for volatility.

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Takaful prospects in Tunisia

Although in its early stages, takaful has been flourishing since the country’s first shariah-compliant firm started operations in 2013.
 

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