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Jan 2017

News


MENA

Middle East: Exchange rate risk remains a concern

Businesses in the GCC and five other countries in the Middle East (GCC+5) remain worried about the potential impact on costs as a consequence of pressure on exchange rate pegs caused by the decline in the price of oil.
 


GCC: VAT likely to skew insurance industry costs


Algeria: Compulsory motor TPL tariff to see first hike in a decade

Tariffs for motor compulsory third-party liability insurance will be increased every six months by 5% over a two-year period, starting 1 January 2017, said media reports. 
 


Algeria: Proposed law to tighten claims settlement process

Negotiations have recently begun between the insurance industry and the government in Algeria to amend the insurance law that would, among other measures, impose strict conditions on insurers to comply with norms regarding the reimbursement of claims.
 


Bahrain: Insurance advisory firm ties up with broker for GCC mart

Protection Insurance Services (PIS) has formed a strategic partnership with Hong Kong-based insurance advisory company, Pacific Prime, to extend its operations within the GCC countries and in other regions across the globe.
 


Egypt: Plans to form new national reinsurer revived

State-owned Misr Insurance Holding has resurrected an attempt to create a new national reinsurance company in Egypt and will be undertaking a feasibility study soon, reported Al Mal News.
 


Egypt: Urgent need for disaster insurance pool

The establishment of a natural disaster insurance pool in Egypt needs to be accelerated as the issue has become more urgent following losses from floods affecting a number of governorates in the country, insurance industry players said.
 


Iran: Regulator calls for 40% cut in auto tariffs

Central Insurance of Iran (CII), the insurance industry’s regulator, has proposed a 40% cut in premium rates for personal auto policies.
 


Iran: Nov train crash estimated to cost lead insurer $7 mln

Parsian Insurance Company, which is affiliated to Parsian Bank and one of the four major private insurers in Iran, will compensate the victims of the 25 November train crash in the north central province of Semnan, in which more than 40 people died and over 100 others were injured. Parsian faces a bill of around IRR220 billion (US$6.8 million) in compensation costs, according to estimates.
 


Iran: State-owned insurer snowed under by uncollected premiums

State-owned Iran Insurance Company (IIC), the largest insurer in Iran, has been facing major challenges in recent months, as its share of the market shrinks and its debts mount.
 


Iraq: Govt to merge the country's two state-owned insurers

The Iraqi government is merging the country’s two state-owned insurers to form a stronger entity to better support the economy and put the merged entity in a strong competitive position vis-a-vis private insurers.
 


Jordan: Govt to review crippling motor losses

The Ministry of Industry, Trade and Supply, which currently supervises the insurance industry, has assured the Jordan Insurance Federation (JOIF) that it would conduct studies into losses in compulsory third-party motor insurance and find solutions to the issue that would be satisfactory to all parties.
 


Jordan: Business group opposes mandatory health insurance due to costs

Members of the Jordan Chamber of Commerce and other businesses have rejected a plan by the Social Security Corporation (SSC) to implement mandatory health insurance in the private sector in 2017.
 


Morocco: Insurers unveil roadmap towards green economy

Moroccan insurers, as represented by the Moroccan Federation of Insurance and Reinsurance Companies (FMSAR), have pledged to make green investments to counter climate change, with the aim of realising a sustainable vision of a green economy in coordination with all players in the financial services sector.
 


Oman: Chamber of Commerce to publish financial services directory

A key committee of the Oman Chamber of Commerce and Industry has agreed to issue a directory of insurers and banks to explain the activities and services of the financial services sector to the public.
 


Qatar: Insurers generally exempt from floodwater claims

Insurers are generally exempt from compensating motorists whose vehicles are damaged by flood water such as in the recent widespread flooding in the country, according to a circular sent by the Qatar Central Bank (QCB) to insurance companies.
 


Qatar: Seib partners KidzMondo Doha to offer children basic insurance skills

Seib Insurance and Reinsurance Company LLC (Seib) has partnered with KidzMondo Doha, Qatar’s miniature edutainment city, to develop the indoor theme park’s upcoming “Insurance Establishment”.
 


Tunisia: Credit & insurance bureau starts operations

Mitigan, a company that develops risk management services, has launched a subsidiary in Tunisia called Mitigan Credit & Insurance Bureau (Mitigan CIB). The bureau is establishing data exchange platforms covering insurance and loans.
 


Turkey: Almost 81% of registered vehicles have mandatory cover

Of the 20.8 million vehicles registered in Turkey at the end of September, 16.8 million vehicles or 80.8% were covered by compulsory auto insurance, according to data released by the Insurance Information Centre (SBM).
 


UAE: Regulator proposes "game-changing" life insurance rules

The UAE Insurance Authority (IA) has issued draft regulations for life insurance and family takaful business that, among other measures, ban upfront commissions and cross-subsidisation of the costs of multiple sales channels.
 


UAE: New med insurance payment scheme to ensure fair pricing

The Dubai Health Authority (DHA) is set to implement a new health insurance billing and payment system which would lead to fair pricing of healthcare services.
 


UAE: 75% of drivers use mobile phones on the road

An alarming 75% of drivers in the UAE admit to using their phones to make calls or check their messages while behind the wheel, a survey indicates.
 


UAE: Insurance Authority enforces pricing review

The UAE Insurance Authority (IA) has requested insurers in the country to complete their insurance pricing review or underwriting performance evaluation for all property and liability insurance branches by 1 March 2017.
 


UAE: Insurers prepare for Common Reporting Standard

The Ministry of Finance and the Central Bank of the UAE are working with insurers, banks and other financial services companies in the country to prepare for the Common Reporting Standard (CRS), which will come into effect starting 2018.
 


UAE: Dubai sets up fire testing lab to improve building safety

Dubai Municipality is setting up its own laboratory to test building materials and products for fire resistance in order to improve fire safety in UAE buildings. It will be the first government facility of its kind in the UAE.
 


UAE: Drivers prefer quality over cost when buying car insurance

Over two-thirds of UAE drivers prefer to purchase the best car insurance coverage, rather than the cheapest, according to a survey from the Middle Eastern financial comparison site, compareit4me.com.
 


UAE: Kay International AMEA launches in DIFC

Kay International AMEA has set up office in the DIFC to offer reinsurance risk placement services for risk located in Asia, the Middle East, and Africa. The company operates as an independent multi-line underwriting general agency (MGA) and reinsurance placement intermediary (broker). 
 


UAE: Plan for local insurers to play bigger role in aviation

The UAE Insurance Authority plans to encourage local insurers to establish an “alliance” to provide insurance and reinsurance services to local aviation companies.
 


Global

Losses from disaster amount to $158 bln in 2016 but only $49 bln insured

Total economic losses from natural and man-made disasters in 2016 totalled at least US$158 billion, which was significantly higher than the $94 billion losses in 2015, estimated Swiss Re. Overall insured losses were also higher in 2016 at around $49 billion, compared to $37 billion in the previous year. 
 


Growth in life to outpace non-life in next 2 years

Growth in global non-life premiums is forecast to fall slightly from 2.4% in 2016 in real terms to 2.2% in 2017, before rising to 3% in 2018, while the global life premiums are expected to grow by 4.8% in 2017 and 4.2% in 2018, Swiss Re’s publication Global insurance review and outlook for 2017/18 shows. 
 


Climate insurance gap of $100 bln requires industry shift

ClimateWise, a global network of 29 insurance industry organisations which is convened by the University of Cambridge Institute for Sustainability Leadership, has warned of the urgent need to address the growing US$100 billion annual climate risk “protection gap” in two new reports. 
 


CGIF signs its first reinsurance treaty with world leading reinsurers

The Credit Guarantee and Investment Facility (CGIF), a trust fund set up of the Asian Development Bank (ADB), said it has executed its inaugural reinsurance treaty, with a panel of market leading private reinsurers, led by the specialist credit reinsurance team of Munich Re. This treaty, which incepted on 1 October 2016, covers all guarantees issued up to the end of 2017.
 


Takaful

Indonesia: Takaful lags due to mirroring of conventional products

A lack of differentiation in product features has the Shariah-compliant insurance industry lagging behind its conventional counterparts, a senior insurance executive has said as he outlined some shortcomings in takaful in Indonesia that also hold lessons for Islamic insurance markets in the Middle East.
 


Saudi Arabia: Insurance market undergoing structural change

The Saudi insurance market is going through a structural evolution with the introduction of stronger regulations, aided by a welcome shift towards the right level of technical pricing, according to Mr Sanjay Jain, MENA Insurance Leader at the international professional services firm EY.
 


Saudi Arabia: Govt vehicles to be covered for motor TPL

The Saudi Arabian Monetary Authority has finalised regulations on motor third-party liability insurance covering governmental vehicles, a move forecast to generate billions in premiums for insurers.
 


Saudi Arabia: Regulator suspends another insurer for poor services in motor

The Saudi Arabian Monetary Authority (SAMA) has suspended a fourth insurer from issuing new motor insurance policies or renewing existing ones due to the latter’s delay in settling motor insurance claims and its handling of customers’ complaints.
 


Saudi Arabia: Fenchurch Faris launches branch office in Al Khobar

Fenchurch Faris Limited (Saudi Arabia) has launched its new branch office in Al Khobar, Saudi Arabia to provide retail and wholesale insurance broking services for the Kingdom’s eastern province.
 


UAE: Takaful Emarat signs bancatakaful partnership with Ajman Bank

DFM-listed Takaful Emarat has inked a bancatakaful agreement with Ajman Bank which will see Takaful Emarat provide Shariah-compliant life and health insurance to the bank’s clients.
 


Uganda: Parliament set to pass Bill enabling takaful

The Insurance Regulatory Authority (IRA) is now awaiting the Ugandan Parliament to pass a Bill that proposes to amend the Insurance Act that would cater for Islamic insurance.