The UAE and Saudi Arabian health insurance markets – the two largest in the Middle East – have an unsustainable number of providers, according to Fitch Ratings.
Growth in the MENA insurance markets remains higher in comparison with most mature markets, with the region remaining attractive to investors, said A.M. Best in its special report ‘Middle East and North Africa Insurance Ratings: Benchmarking’.
The Central Bank of Bahrain (CBB) is working to launch new licences for intermediate platforms that provide insurance services through insurers via the internet, according to Mr Abdul Rahman Al-Baker, executive director of Financial Institutions Supervision at the CBB.
FAIR Oil & Energy Insurance Syndicate (FOEIS) (Bahrain) reported a net profit of $2.3m for 2018, continuing its trend of healthy profit generation over the previous five years (2013-2017), according to its preliminary financial results.
Insurance intermediaries are protesting against competition from non-insurance entities that engage in the distribution and marketing of insurance products.
Sarwa Capital, a provider of financial solutions, including auto credit insurance and consumer finance, has received approval from the Financial Regulatory Authority (FRA) for the operation of two insurance companies with an initial capital of EGP100m ($5.75m) each.
An Egyptian broker is in the process of establishing insurance brokering operations in Ethiopia that are scheduled to start within this year.
The Jordan Insurance Federation (JIF) has joined several other associations to file a law suit, challenging a regulation issued by the Jordanian Medical Association (JMA).
The Jordanian insurance industry posted a huge jump in net profit for 2018, when the combined profits of all insurers reached JOD18.6m ($26.2m), an increase of 541.4% over the JOD2.9m posted for 2017, according to Mr Majed Smairat, chairman of the Jordan Insurance Federation (JIF).
The Jordan Insurance Federation (JIF) has received 35 research papers on the topic ‘e-insurance’ from around the region, vying for the Research Award at the upcoming Aqaba Conference 2019 (AqabaConf).
Kuwait’s Parliament has voted overwhelmingly to approve a draft law that would make it mandatory for visitors to have health insurance that covers the duration of their stay in the country.
Saradar Capital Holding, the holding company of a Lebanese conglomerate, has acquired 51% of Assurex, a 40-year old Lebanese insurance company owned by the Fattal Group.
Wafa Assurance, the insurance arm of Morocco’s biggest bank Attijariwafa Bank, has issued a profit warning about its 2018 results.
Oman Re has finished in the black for the second consecutive year, achieving a net profit of OMR660,600 ($1.7m) for 2018, up 588.1% over the OMR96,000 in 2017, according to a statement released by the company. It was the second consecutive year in which the reinsurer reported a profit.
The combined after-tax profit of seven insurers listed in Palestine stood at $16.4m, a 35.4% plunge from $25.4m in 2017, based on preliminary financial statements filed by the companies, said media reports.
Insurers in Palestine saw total compensation payouts increase by 11.6% to $173m in 2018 from $155m in 2017, according to Mr Anwar Al-Shanti, chairman of Palestinian Insurance Federation (PIF).
The Saudi Arabian Monetary Authority (SAMA) has adopted a set of norms that customers of insurers should follow in order to protect their rights and guarantee that they buy the best products and services.
The insurance market in Saudi Arabia is potentially facing a major shake-up as a new draft insurance law has proposed raising the minimum capital insurers need to SAR500m ($133.3m), said rating agency Moody’s. The current minimum capital is SAR100m.
Insurance agents in Tunisia have voiced their disagreement with the second version of the draft Insurance Code being prepared by the General Insurance Committee (CGA), saying that proposed changes would harm their profession and the interests of the insureds.
The government will soon present to Parliament a draft insurance Bill covering natural disasters which, when passed, would oblige businesses for the first time to contribute to a Nat CAT fund, according to finance minister Mohamed Ridha Chalghoum.
Societe Tunisienne de Reassurance (Tunis Re) has posted a 13.6% increase in total premiums to TND138.2m ($46m) in 2018, compared to 2017, according to indicative figures released by the reinsurer. The growth was driven by life reinsurance and retakaful operations whose premium growth rates were far higher than that of its non-life business.
Several small insurance agencies have banded together to cut costs and avoid bankruptcy, according to Mr Resit Cakas, chairman of the Association of Insurance Agencies (SAB).
New projects in the UAE, particularly those announced in Abu Dhabi, will lead to growth of 15-20% in premiums written this year. Total premiums will reach approximately AED60bn ($16.3bn), according to the Higher Technical Committee of the Emirates Insurance Association (EIA).
The UAE’s health insurance sector is overcrowded with too many players fighting for very small shares of the market, a Dubai Health Authority (DHA) official has said.
The Emirates Insurance Association (EIA) has announced that a compulsory 10-year insurance scheme for building projects, providing cover against design and construction defects, will be introduced in the UAE.
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The Emirates Insurance Association (EIA) has announced that a compulsory 10-year insurance scheme for building projects, providing cover against design and construction defects, will be introduced in the UAE.
The Emirates Insurance Association (EIA) has filed a memorandum with the Federal Tax Authority’s appeals committee to clarify the legal interpretation of the mechanism for the application and payment of VAT paid on insurance policies sold in 2017 but whose term lasts into 2018.
Shukran, Landmark Group’s retail loyalty programme with over 10m active members in the Middle East, has partnered with Oman Insurance Company (OIC) to provide unique insurance benefits to its members and a chance to earn Shukran points on select insurance transactions with OIC.
The accelerating global technological advancements and the increased retirement age and years of service show there is an excellent opportunity and an urgent need in the region to establish investment funds to manage retirement and end-of-service benefits (EOSB), which will provide a saving opportunity to all the employees in the UAE and the region labour markets, said Dr Abdulrahman Abdul Mannan Al Awar, director general of the Federal Authority for Government Human Resources (FAHR).
Global
The European Union Finance Ministers (ECOFIN) has expanded the list of jurisdictions included on the EU’s tax haven blacklist.
MENA
Sixty-three InsurTech deals with a total value of $1.59bn were announced globally in the fourth quarter of last year – the highest ever since the second quarter of 2015, according to the latest findings by Willis Towers Watson.
Global
Asia-Pacific led the global growth in insurance M&A in 2018, driven by the many untapped opportunities in the region, according to Clyde & Co’s 2019 insurance growth report.
The Chartered Insurance Institute (CII) has launched a new initiative which allows professionals to take exams remotely, even from the comfort of their own home.
Takaful
General takaful contributions are expected to expand at 6-7% this year with the progressive impact of tariff liberalisation and moderate economic growth, according to rating agency RAM Rating Services.
Etiqa Insurance aims to stay ahead of the market amid a challenging economic and operating environment, reported The Star.
Zurich Malaysia has announced the appointment of Mr Mukesh Dhawan as the CEO of Zurich Takaful Malaysia (ZTMB) effective 1 March 2019.
The Moroccan takaful market could start with two operators only, after legislation and regulations have been passed, a move which is expected by the end of June, according to Mr Hassan Boubrik, president of the Insurance and Social Security Supervisory Authority (ACAPS).
Executive regulations governing takaful activities are currently being finalised and could be issued this year, according to Sheikh Abdullah bin Salem Al Salmi, the executive president of the Capital Market Authority (CMA).
The Tunisian government’s stakes in Zitouna Takaful and Zitouna Bank have been officially sold to Majda Tunisia, which is owned by Ms Sheikha Moza, mother of the current Qatari emir, Sheikh Tamim bin Hamad Al Thani.
Takaful Emarat has posted a net profit of AED14m ($3.8m) for 2018, reflecting one-off costs associated with the acquisition totalling AED8m, reported Trade Arabia News Service.