From Editor-in-Chief
Getting ready for an exciting chapter
Sowing the seeds for sustainable growth
New association hopes to make its mark quickly
Oman Re calls on insurers to improve standards
Pensions & Retirement Planning: Building the retirement nest
Pensions & Retirement Planning: Public pensions in MENA: A dangerous situation
Pensions & Retirement Planning: Taking responsibility for a comfortable retirement
Pensions & Retirement Planning: Meeting the pensions challenge through fiduciary management
Palestine: Need for a stronger regulatory role
Claims: Achieving efficiency through e-claims
Claims: Improving motor profits through claims management
Innovation: Innovating through the cloud
Innovation: New choices for motor insurers
Focus on sustainable Development: Is there a need for a green fund?
Health: Promoting sustainable health insurance
Health: Finding panaceas for health
Market Update: Earthquake in Lebanon and lessons for stakeholders
Takaful Review 2012: Easing inherent tensions in the takaful model
Gambia: Spearheading takaful in Gambia
MENA: Oil importers and exporters on different growth tracks – IMF
Mena & GCC: High-growth SAAME markets spawn rising demand for wealth protection
Mena & GCC: Maghreb: Impact Forecasting launches earthquake models
Bahrain: Arig achieves profit in 9M12
Bahrain: Trust Re posts 6% growth in 9M12
Iran inks insurance agreement with Afghanistan
Jordan: IC to be scrapped amid government austerity measures
Kuwait: Warba Insurance’s profit soars 80% to US$4.5 mln in 9M12
MIGA insures Libyan beverage and harissa plant
Oman: ONIC returns to profit on insurance growth
Qatar: QFC enacts special company and single family office regulations
Qatar: QIC premiums up 11% to US$599 mln in 9M12
Qatar: Energy and medical premiums boost Al Koot’s growth
Tunisia’s insurance sector on the road to recovery – Tunis Re
UAE: Financial activities contribute to 4.9% of Abu Dhabi’s GDP in 2011
UAE: Community Development Authority forms health insurance team
UAE: RSA launches reinsurance arm in DIFC
New UAE legislation to increase exposure for directors
UAE: ADNIC partners with MSH International
Insured losses from Sandy may hit US$25 bln
Over 70% of workers worldwide lack unemployment insurance – ILO
Egypt: Islamic finance association to create list of Shariah-compliant stocks
Hong Kong gets ready to be Islamic finance conduit in Greater China
Libya Insurance aims to become takaful operator
Takaful Malaysia aims to hire 1,000 agents by end-FY12
Malaysia: Great Eastern Takaful launches term product
Malaysia: Takaful scheme for rice crops may be expanded
Malaysia: AMMB moves to repurchase stake in JV
Malaysia: PruBSN’s 1H new business sales up 23%
Oman to amend tax laws to level Islamic playing field
Real estate firm to issue Oman’s maiden sukuk
Saudi Arabia: Property & engineering rates decline 10%
Saudi Arabia: ICEIC signs MoU with bank to support SMEs
Saudi Arabia: AXA sees slight growth in premiums in 3Q
Saudi Arabia: Al Rajhi Takaful returns to profit in 3Q
UAE: ADIB raises US$1 bln in world’s first perpetual sukuk
UAE: Abu Dhabi Nat’l Takaful profits up 10% in 9M12
Room for co-operation between takaful and conventional insurers – EAIC
IFSB releases draft guidelines on risk management for takaful
RGA celebrates MENA presence
Tackling bread and butter issues
Diary of Events
People on the Move
Buy Now
With the wider definitions and increased coverage in the new Unified Motor Policy, Oman’s motor business faces new dynamics. And with proposed regulatory changes including allowing takaful business, the playing field is shifting in the Sultanate.
Middle East Insurance Review speaks to H.E. Abdullah Bin Salim Al Salmi, Executive President of the Capital Market Authority (CMA) of Oman, on the vision for takaful and Islamic finance in the Sultanate, as well as measures to improve the competitiveness of the insurance sector.
Established just over a year ago, the Oman Insurance Association has a number of tasks at hand to fulfill its role as an enabler for the constructive development of the Sultanate’s insurance sector. Middle East Insurance Review speaks to its Chairman Mr Nassir bin Salim Al Busaidi on its priorities. By Ridwan Abbas
With adjustments in the motor business increasing the liability limits for insurers, the industry should seize the opportunity to improve their underwriting capabilities, says Mr Murtadha MJ Ibrahim Al Jamalani, Managing Director of Oman Re. By Ridwan Abbas
The ageing problem is brewing in the MENA region, with public pensions under stress. There are opportunities in the air, including outsourcing of pension schemes and special solutions for expats. Our Cover Story looks the current state of affairs as well as the future ahead.
Generous benefit provisions and inefficient investment policies may see many public social pension schemes in MENA going into the red soon, says Dr Markus Loewe of the German Development Institute.
Long-term unit-linked regular savings plans are among the options available to expatriates wanting to secure their financial future. Mr Omar Shelbaya of Friends Provident International looks at the benefits of such plans, and what investors should look out for.
Outsourcing the day-to-day management of a pension scheme to a lead manager could help overcome the pensions challenge in the Middle East, says Mr Jahangir Aka of SEI Investments (Middle East).
The Palestine insurance market has continued to expand amid the tough economic and political circumstances, but there are hopes that improving the regulatory environment would help improve the sector’s results. The 2nd Palestinian Insurance Forum, held in Ramallah recently, addressed such critical issues in the market, with key players sharing...
Against the backdrop of the Dubai Government’s attempts to implement e-claims, Dr Beena Nair of Arabian Scandinavian Insurance discusses the potential benefits of going electronic, and pre-requisites for a successful e-claims system.
Mr Ricardo Arroyo Herrero of AXA Insurance Gulf discusses various measures that can be taken by a claims department – in terms of average claims cost, reserving management and recoveries management – to improve the loss ratio for motor business.
Technology is reshaping confidential insurance information by making it paperless and putting data in cloud storage, says Mr Roy Gilmour of Qatar Insurance Services LLC.
Innovation has brought new ways of working to the salvage industry that can deliver both savings and greater efficiencies, and could help motor insurers reduce their claims costs, says Mr Carlos Sabugueiro of Copart Middle East & Africa.
Ms Basma Barakat of Arab Reinsurance Company, runner up in the MICC Essay Competition, explores how green funds can potentially help reduce greenhouse gas emissions while increasing ecosystem services through more sustainable measures.
Healthcare insurance is facing several challenges and insurers must focus on achieving profitability to survive in the long term, said speakers at the 6th Middle East Healthcare Insurance Conference in Dubai.
Speakers at the 9th Annual GCC Insurance Forum in Dubai last October made recommendations for health insurance, increasing the nationalisation rate in the insurance sector and creating an “Insurance Day” to spread awareness.
Mr Andreas Wenzel of Munich Re discusses earthquake hazard in Lebanon and the actions that the insurance community can take to achieve good management of Nat CAT exposure, particularly in the light of last year’s natural disasters
Recent regulatory changes have highlighted the conflict between the co-operative nature of takaful and its commercial existence, and may even hamper its advancement, says Mr Marcel Omar Papp of Swiss Re as he assesses key developments on the takaful front this year.
Insurance penetration in Gambia is low, but the insurance market is growing, with takaful leading the way in recent years. Mr Talib A Bensouda of Takaful Gambia, the country’s only Islamic insurer, assesses the situation.
Most oil-exporting countries are forecast to expand by 6.6% in 2012 before moderating in 2013 thanks to higher oil prices and production, while growth among oil importers will reach just above 2% this year as they face a difficult external environment, said the International Monetary Fund (IMF).
Emerging markets in South America, Asia, Africa, and the Middle East (SAAME) are seeing a rising demand for insurance products as their economies expand and their consumers acquire more wealth, said PwC in a new report. Almost 50% of insurance industry leaders see the emerging markets as more important than developed markets to their company’s...
Impact Forecasting, Aon Benfield’s catastrophe model development centre, has launched new Algeria and Morocco earthquake models. The models bridge a gap in the market as no vendor model currently exists for both countries, said Aon Benfield.
Arig bounced back into the black in the third quarter ending 30 September with a net profit of US$10.3 million, compared with the $11.5 million loss in the same period last year, driven by benign claims and a rise in investment income.
Trust Re’s gross written premium grew by 6% y-o-y to US$273.2 million in the first nine months of 2012 on stable terms and conditions during the period.
Iran has signed an agreement with Afghanistan to co-operate in various fields of the insurance industry, said media reports.
As part of a public restructuring plan, the government will be scrapping the Insurance Commission of Jordan (IC), along with another five independent public agencies, said Prime Minister Abdullah Ensour in an interview with Jordan Television last week – highlighting his government’s plan to increase state revenues and cut public spending.
Warba Insurance Co saw its net profit jump by about 80% to KWD1.27 million (US$4.5 million) in the first nine months of the year, resulting in earnings per share of 7.3 fils compared to 4.07 fils in the same period last year.
The Multilateral Investment Guarantee Agency (MIGA) is supporting the ongoing operations and expansion of Jafara Group Limited, a company that produces, bottles, and distributes drinking water, juice, and harissa in Libya. The project was underwritten through MIGA’s Small Investment Program, and is the first use of a World Bank Group lending or...
Oman National Investment Corporation Holding (ONIC) has reported a net profit of OMR3.3 million (US$8.6 million) for the nine-month period ended 30 September 2012 against a net loss of OMR0.5 million in the same period last year, due mainly to positive returns from its investments and robust business growth at its insurance subsidiary.
The Qatar Financial Centre (QFC) Authority has issued new regulations governing special purpose companies, holding companies and single family offices operating in or from the QFC
Qatar Insurance Co (QIC) saw its gross premiums grow by 11.2% y-o-y to QAR2.18 billion (US$598.6 million) in the first nine months of 2012, according to a statement filed with the Qatar Exchange (QE).
Al Koot Insurance and Reinsurance, a wholly-owned subsidiary of Gulf International Services (GIS), saw premiums and net commission income increase 13.4% y-o-y to QAR439.5 million (US$120.7 million), following significant growth in sums insured and premium inflation in its core energy business, and a successful medical insurance scheme.
The Tunisian insurance sector is gradually recovering from the effects of the recession which paralysed the economy over the past couple of years, said Mrs Lamia Ben Mahmoud, Chairwoman and CEO of Tunis Re.
Abu Dhabi’s financial and insurance sector grew 13.6% to AED39.2 billion (US$10.7 billion), accounting for 4.9% of its GDP last year, according to a report by the Statistics Centre-Abu Dhabi (SCAD).
The Community Development Authority (CDA) is setting up a health insurance team to support people with disabilities whose families work in the public sector in Dubai and whose health insurance is covered by Enaya.
RSA launched its MENA regional reinsurance operation at the Dubai International Financial Centre (DIFC) in November, focussing primarily on reinsuring large and complex risks.
The UAE is drafting changes to the current Federal Law No. 8 of 1984, known as the Commercial Companies Law (CCL), ranging from altering restrictions on foreign ownership to expanding the scope of the UAE Free Zone.
Abu Dhabi National Insurance Company (ADNIC) has signed a global medical claims administration agreement with MSH INTERNATIONAL, a UAE-based TPA, for SHIFA, ADNIC’s international medical insurance product and other selected products.
Insured losses from Hurricane Sandy are estimated at anywhere from US$7 billion to $25 billion and total economic loss estimates may hit $50 billion, making it one of the costliest storms in US history, according to figures from catastrophe modellers.
The recent global economic crisis has served as a stark reminder of why unemployment insurance matters, but more than 70% of workers worldwide still have no statutory access to such insurance or any type of unemployment assistance, said the International Labour Organization (ILO).
Egypt’s recently-formed Islamic Finance Association plans to launch a list of Shariah-compliant equities soon as part of its efforts to raise awareness of Islamic finance in the country.
Hong Kong’s government has released the conclusions of a consultation, which ended in May this year, to provide a taxation framework for sukuk on a par with that for conventional bonds, with a view to promoting Islamic finance development in Hong Kong and Greater China.
Libya Insurance Co (LIC) – the largest insurer and the only one offering takaful in the country through a window – is hoping to become a full-fledged takaful operator, said Mr Ali Ammar Regae, Director & Deputy General Manager, in an interview with Middle East Insurance Review.
Syarikat Takaful Malaysia hopes to end its financial year 2012 by reaching the 1,000-agent mark, after recently launching the “Be My Agent” campaign to promote career opportunities within the takaful business.
Great Eastern Takaful has launched a takaful term plan designed to provide low-cost family takaful coverage to consumers.
The Takaful Padi Protection Scheme – introduced in Malaysia’s 2013 budget – may be expanded to cover other agricultural activities, depending on its success in paddy fields, according to news agency Bernama.
AMMB Holdings is hoping to conclude talks to repurchase the 30% stake held by Friends Life in their two joint ventures, AmLife Insurance and AmFamily Takaful, by the end of this year, said Group Managing Director Ashok Ramamurthy.
Prudential BSN Takaful (PruBSN) has seen 23% y-o-y growth in new business sales to MYR129 million (US$42 million) in the first half of this year, maintaining its leadership among takaful operators in Malaysia.
The Omani government is planning to amend existing tax legislation to facilitate a level playing field for Islamic financial products and services alongside its conventional counterparts, according to a local report.
Omani real estate firm Tilal Development Co has approached the Sultanate’s market watchdog Capital Market Authority (CMA) to raise funds by way of a sukuk, which will be the first such issue in the country
The 10% drop in property and engineering rates in the past year might affect the performance of insurance portfolios negatively, creating difficulties for insurance companies to obtain first-class reinsurance coverage, said speakers at a Saudi Re seminar in Riyadh recently.
The Islamic Corporation for the Insurance of Investment & Export Credit (ICIEC) has signed a Memorandum of Understanding (MoU) with the National Commercial Bank (NCB) to provide insurance services for local SMEs up to 90% of the credit facilities provided by banks.
AXA Cooperative Insurance Co has recorded a 1.7% increase in gross written premiums for the third quarter to SAR125 million (US$33.3 million), while net written premiums decreased 3% to SAR96 million.
Al Rajhi Company for Cooperative Insurance (Al Rajhi Takaful) has recorded net profit before zakat of SAR3.9 million (US$1 million) for the third quarter of 2012, compared to a net loss of SAR18.3 million for the corresponding quarter of 2011.
Abu Dhabi Islamic Bank (ADIB) recently launched the first-ever Tier 1 perpetual sukuk, raising US$1 billion to boost its core capital.
Abu Dhabi National Takaful has reported 10% growth in net profit to AED23.1 million (US$6.3 million) for the first nine months of the year ended 30 September 2012.
Takaful is still an uncharted territory in many markets with a significant Muslim population, and can co-exist and collaborate with conventional insurance players, said speakers at the 26th East Asian Insurance Congress (EAIC) in Kuala Lumpur, Malaysia in early November.
The Islamic Financial Services Board (IFSB) has released new draft guidelines on risk management of takaful and capital adequacy for Islamic banks.
Although RGA is relatively new in the MENA region, it is backed by 40 years of history and understands the nature of business in the region, said Mr Allan O’Bryant, Executive Vice President and Head of International Markets & Operations at the RGA CEO Dinner, held in Burj Al Arab, Dubai in October. MENA is a promising market with great potential...
Motor and life insurance represent both the bread and butter as well as the future of the insurance sector in the region. As the year draws to a close, we recap some of the views of the industry at Middle East Insurance Review’s recent motor and life conferences.