News - Middle East: Credit crunch aftershocks continue to put risk management in the spotlight – Ernst & Young
News - Global: Ten per cent returns to members as UK War Risks Club sets new rates
The global recession, the effects of the credit crunch and reputation risks are the top three risks that could have the greatest implications on businesses in the Middle East in 2009, said Ernst & Young.
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Despite the challenging investment markets, the UK War Risks Club said it will return 10% of the net advance contribution paid by members in 2008 when they renew for 2009.
Arabia Insurance Co of Syria achieved SYP478.3 million (US$10.4 million) in premiums last year, 132% more than the previous year and beating the company’s forecast. However, premium growth is not the main priority, says General Manager Fouad Hannoun.
Riding on the wave of economic growth, the United Insurance Co (UIC) plans to keep introducing new insurance products to the Libyan insurance market, says Mr Ali M Souri, General Manager.
2008 was a big year for Oman’s insurance sector. Foreign interest continued with the licensing of another three new foreign players, in addition to the launch of a new local insurer. The market also saw the emergence of the first local reinsurance company. Consequently, the market has become more crowded and new strategies are required in...
The Capital Market Authority (CMA) is committed to creating a free insurance market in Oman while establishing a level playing field for all players, says Mr Salim Hamed Al Manthri, Director of Insurance Operations.
Oman’s oldest insurer is preparing to overcome the coming challenges posed by the economic slowdown and motor business with cost control and a cautious approach, says General Manager A R Srinivasan.
Al Madina Gulf Insurance (AMGI) is one of the fastest-growing insurers in Oman, thanks in part to its strategic partnerships. CEO Ravi Shankar elaborates in this interview.
Despite the economic turmoil and the unstable investment environment, Dhofar has maintained its leadership of the Omani insurance market with its focus on profitability and quality business, says Mr Rawny Khadr, Vice President for Development & Marketing.
New India Assurance Oman (NIA) has doubled its gross premiums over the last three years and will continue to emphasise on customer satisfaction, says Dr J Retnakumar, Resident Manager - Oman.
With losses faced by the insurance sector caused by the deteriorating motor insurance business and weak investment climate, Oman United Insurance Co is emphasising on service levels and looking out for new opportunities, says CEO Nassir Bin Salim Al Busaidi.
Vision Insurance Co (VIC) has branded itself as a mature insurer since it started operations less than a year ago, banking on its technical and professional capabilities, says CEO P R Ramakrishnan.
Despite the efforts made over the years, motor remains one of the biggest challenges facing MENA insurers. The General Arab Insurance Federation (GAIF), realising the importance of the issue, organised a seminar in cooperation with Oman’s Capital Market Authority (CMA) in February, focused on finding ways to control motor losses and reduce...
Although insurance and takaful companies have expressed confidence in meeting their growth targets for 2008, profits may not be as high as in previous years.
The financial crisis has exerted greater pressure than usual on CEOs to meet targets and expectations, and ensure that the company stays afloat while answering to various stakeholder demands amidst calls for more transparency. What does it take for a CEO to succeed? Leading figures in the industry offer their views.
The Middle East is a bright spot in the slumping global aviation market, says Mr Jeremy Kinsey, Regional Executive Officer & Sales Director, Global Aviation, Willis Aerospace.
Mr M P Shashidharan, Senior Vice President – Aviation and Specialty Underwriting of Oman Insurance Co of Dubai, explains the relevance of the various information sought by underwriters in insuring general aviation aircraft.
Mr Igor Vasylchenko, Executive Vice President of Ukraine-based Lemma Insurance Co, which celebrates its 15th anniversary this month, discusses the opportunities for space insurance market, globally and in the Middle East.
The continued growth of Islamic banking would provide the synergy for the growth of the takaful industry with bancatakaful as an important driver, says Mr Bilal Mahmood, Senior Manager, Alternative Distribution Channels, Abu Dhabi National Takaful Co.
With the economic crisis and uncertainty, insurers must forge ahead with new strategies and, at the same time, go back to the fundamentals of managing risks rather than just aggressively investing. This was the key message at the 5th Annual Middle East Insurance Forum (MEIF 2009), which was held at an extraordinary time in the international...
Vanbreda International, a Belgium-based employee benefits consultant and administrator has opened its office in Dubai. Its Deputy Director for Market Development, Mr Kevin Melton, speaks about its plans for the region. By Ms Gillian Lim
Continued investment spending by Middle Eastern oil exporters is cushioning the impact of the global financial crisis on the entire region, according to IMF Middle East and Central Asia Department Director Masood Ahmed at a DIFC Breakfast Briefing on the implications of recent global economic developments for the region.
Friends Provident International (FPI) has launched a new single premium product with the option of early access and an annual loyalty bonus for long-term investors in the Middle East.
The Central Bank of Bahrain (CBB) has granted licences to Legal and General Gulf, and Legal and General Gulf Takaful, which will offer life insurance and takaful services, respectively, in the Kingdom and the Middle East region
The CBB announced that the electronic visa application system for the banking and insurance sectors has been launched and is operational, in line with the General Directorate of Nationality, Passports, and Residence (GDNPR)’s efforts to simplify and speed the visa application process for the financial sector workforce.
Bahrain National Insurance Co (bni), a subsidiary of Bahrain National Holding (BNH), has launched a new service, Intelligent Insurance, an automated insurance renewal machine that allows its customers to renew their motor, home and domestic servant policies in an easy, quick and convenient manner.
Arab Insurance Group (Arig)’s reinsurance portfolio expanded by 12% y-o-y to US$280.7 million in 2008. Non-life gross premiums grew 11% to $219.7 million and its life portfolio increased by 19% to $61.0 million.
Despite the recent bearish market conditions, Bahrain Kuwait Insurance Co (BKIC)’s underwriting profit swelled 79% to BHD3 million (US$8 million) last year, Mr Abdulla Buhindi, Chairman of BKIC said.
Gross insurance premiums in the Jordanian market increased by 14% to US$467.7 million by the end of last year, up from $411.4 million recorded in the same period in December 2007, said the Insurance Commission of Jordan (IC).
Al Madina Gulf Insurance Co and United Finance Company (UFC) have signed an agreement to provide insurance-linked loans to finance automobile and equipment purchases.
Standard & Poor’s Ratings Services (S&P) was cautiously optimistic over medium-term prospects for Qatar’s insurance sector in its report which highlighted the continued growth of the country’s GDP in spite of the financial crisis.
Al Khaleej Insurance and Reinsurance Co (AKHI) said it was selling a 25% stake in Bahrain’s National Life Assurance Co to Doha Bank Assurance Co for QAR5 million (US$1.4 million). The transaction was approved by the board of directors and regulatory authorities, AKHI said in a communiqué to the Doha Securities Market (DSM)....
Net insurance revenue at Qatar Insurance Co (QIC) grew by 38% y-o-y to QAR306.6 million (US$84.2 million) in 2008. Net profits rose 8% to QAR511 million and gross premiums reached QAR1.97 billion, up from QAR1.52 billion in 2007.
Doha Insurance Co reported a slight growth in net profit for 2008 to QAR47.2 million (US$13 million), up from QAR44.3 million a year ago, its statement to the Doha Securities Market revealed.
The Health Insurance Corporation, Khartoum State (HICKS) and the World Health Organization (WHO) in Sudan have signed a memorandum of understanding (MoU) to conduct an actuarial study to analyse the current situation of social health insurance.
AIG Sigorta said it would be increasing its capital from TRY18 million (US$11 million) to TRY43.56 million in 2009. The additional capital of $15 million will be contributed by American International Underwriters Overseas Ltd.
Bulgarian-based EuroIns Insurance Group (EIG) has entered the Turkish insurance market through acquiring 90% of general insurer Inter Sigorta for €427,000 (US$544,131) as part of its expansion strategy in the region.
A report by the Dubai Chamber of Commerce and Industry (DCCI) said the long term prospects of the UAE’s insurance industry are positive despite the short-term adverse impact of the global economic slowdown.
Emiratis working in the private sector will no longer be entitled to free medical insurance scheme following the Health Authority-Abu Dhabi’s (HAAD) decision to introduce a co-payment of 50% for dental and pharmaceutical services in all private sector facilities.
A seminar organised by the Dubai International Financial Centre (DIFC) highlighted its potential in developing into a key global and regional hub for captive insurance.
All private healthcare practitioners will not be allowed to practise in the UAE without insuring against medical errors, according to a circular issued by the Ministry of Health.
GEMS Education, in association with Marsh Insco and NGI Aviva, has introduced an education insurance programme that assures the funding of pupils’ tuition fees in the event of death or total disability of the family’s primary bread winner.
Oman Insurance Co (OIC) reported a gross written premium of AED2.14 billion (US$582.6 million) for the year ended 31 December 2008, an increase of 41% compared to 2007.
Abu Dhabi National Insurance Co (ADNIC) said its gross written premium grew by 17.2% y-o-y to AED1.36 billion (US$370.3 million) in 2008, while its net profit fell by 36.3% to AED0.21 billion.
The National Health Insurance Co - Daman, announced that it would continue selling the Basic - Abu Dhabi - Plan at the same cost throughout 2009, following an agreement with the Health Authority-Abu Dhabi (HAAD).
The ICC International Maritime Bureau (IMB) Piracy Reporting Centre (PRC) released its annual piracy report which shows an unprecedented rise in maritime hijacking in 2008.
Kuwait Finance House (KFH) has launched its “Family Protection Policy” for its banking account clients to cover individuals or families against death, complete disability, and medical treatment.
Allianz SE Life Reinsurance Branch Labuan (ARLL) has received regulatory approval to establish a separate fund to support the life and health retakaful business. The company will offer retakaful solutions to family takaful providers.
BNP Paribas Islamic Asset Management Malaysia is keen to provide investment solutions for takaful companies in the country and is targeting to manage US$500 million worth of Islamic assets in 2009, its first year of operations.
Pak-Qatar Takaful Group has signed a MoU with SAP Pakistan to implement SAP modules in its Pakistan operations, becoming the first takaful company and the second in the financial services industry in Pakistan to do so.
Qatar Islamic Insurance Co (QIIC) has purchased 500,000 shares of Al-Jisr Takaful Co, a joint venture between Qatari and Bahraini investors, at QAR5.05 million (US$1.37 million). Al Khaleej Insurance and Reinsurance and Al Koot Insurance and Reinsurance have each acquired a 2% stake in the JV for QAR5.05 million.
The Council of Cooperative Health Insurance (CCHI) in Saudi Arabia has given private companies a grace period of six months to provide medical insurance to nearly 1.5 million Saudi employees.
Bupa Arabia has been ranked 12th on the list of 100 fastest-growing Saudi companies at the 2009 Global Competitiveness Forum in Riyadh, becoming the only insurance company to make it to the list.
Najm Insurance Services Co has been authorised by the Traffic Department in Jeddah to determine responsibilities for accidents and remove vehicles from roads to facilitate traffic, news sources said.
SABB Takaful has signed an agreement with the Kingdom’s flagship carrier, Saudi Arabian Airlines, to provide its passengers with Shariah-compliant travel insurance products. The agreement will cover both Saudi Arabian Airlines’ domestic and international flights.
The Monetary Authority of Singapore (MAS) has announced the completion of its sukuk issuance facility to provide Shariah-compliant regulatory assets.
Noor Takaful Insurance Company-Kuwait (NTIC) has been launched in the northern city of Aleppo, Syria, according to news sources. The company has a capital of US$30 million and is offering 1.5 million of its shares for public subscription.
Abu Dhabi National Takaful Co has recently been awarded the “Best Bancatakaful Operator” award by the Islamic Business & Finance Awards 2009 held in Dubai. Hannover Re was recognised as Best Retakaful Operator.
A four-year closed-ended callable US$100 million sukuk fund was launched by Emirates Islamic Bank (EIB), with a minimum investment of $25,000 for individual investors and $1 million for institutional investors.
The Islamic finance industry, particularly the sukuk market, faced unprecedented challenges in 2008 -- namely, the ongoing global credit crisis, rising cost of borrowing, lack of investor commitment to capital market securities as well as debates over the Shariah compliance of some sukuk structures, says Moody’s Investors Service....
In line with its mandate to liaise and co-operate with the relevant organisations currently setting standards for the stability of the international monetary and financial systems and those of the member countries, the Islamic Financial Services Board (IFSB) signed an agreement with the International Association of Insurance Supervisors (IAIS)...