Legal Page - Reinsurance: Contract Certainty a Boon in the Management of Risk
A look at how traditional insurers and takaful operators that reinsure through London enjoy contract certainty that is now a priority in the London market.
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As a curtain raiser to the first-ever Global Middle East Insurance Summit we are hosting in London to tap into the pre-eminence and expertise of the London market, we bring you the thoughts of Chairman of Lloyd’s on managing risks better in today’s increasingly complex environment, the role the Gulf States play within the global...
AXA’s avowed global ambition, announced in 2005 to double total group income by 2012, has translated to quadrupling its income in the emerging markets of the region from US$140 million to $560 million. And its not just top line but to triple bottom line as well.
LIC (International) is now getting ready to make a bigger impact in the Middle East region, having been around for 17 years with its in-depth local knowledge and market experience through its network of partners and officers across the region in Dubai, Abu Dhabi, Doha, Muscat and Kuwait.
Arope Insurance, one of the top five insurers in the highly competitive and active Lebanese insurance markets that is coping with the trauma of the on-going political strife and fighting, is set to boost its business through the conscious use of alternative distribution channels, said Mr Fateh Bekdache, its General...
Friend Provident International (FPI) has now gained a UAE federal insurance licence and approval to open a branch in the Emirate of Dubai.
United Insurance Brokers Ltd (UIB), a leading London-based independent, international insurance and reinsurance broker with some 300 staff across its network of offices around the world, is unique in combining both an affinity with this part of the world and international expertise.
While some doubted the legality of working with banks, others queried the efficacy of getting the best out of banks, and yet others posed questions about banks getting more than insurers. We bring you an analysis of the discussions and findings presented at MiddleEast Insurance Review’s maiden conference in the Middle East which...
Mr Ajmal Bhatty of Tokio Marine looks at using bancassurance as a major strategy to tap the great potential in takaful, while looking at the drivers that affect the growth of bancatakaful.
The UAE market is crowded and fragmented with 46 players, including 23 local players. We bring you a quick snapshot of what some of the players – big, small, young, old, specialist or generic – are doing to carve their niche in the industry which is still relatively conservative and where rate competition is intense and reinsurance...
Mr Omer Elamin, Managing Director, Arab Orient Insurance Co, brings his 34 years of expertise and wisdom to bear upon the operations of the company he joined from Day One.
With the challenges in the market being aplenty, it is all the more important for Oman Insurance Co (OIC) to keep a steady progress and maintain its high standards of quality and service, said its General Manager Abdul Muttalib, who believes that the right people with the right spirit can do a good job no matter how adverse...
Al Ain Ahlia is not budging from its strict underwriting policy even though the market is booming and there is business aplenty. No matter how large the company, it is getting the underwriting right that will determine the success of the company said Mr Ron Bakica, Deputy General Manager, Al Ain Ahlia Insurance Co – one...
The UAE operations of Islamic insurance pioneer, Salama, with its 110 staff writing a premium of AED74 million in 2006 is growing with the launch of new products and a growing acceptance of the “Islamic” nature and “quality” of its products targeted mostly at individuals and small and medium enterprises, said its...
Even as others are going overseas, Alliance Insurance, a composite Emirati company, is staying put in the country and expanding its business in life and health slowly and steadily, said its CEO Wisam Al Haimus who, after 30-odd years, still takes pride in being conservative in this risk business.
New India, which has been in the UAE since 1961, with a low profile but not insubstantial 2% share of the premium pie, is now stepping up its beat to show a new face to tap into the booming potential of the UAE market, said its Resident Manager Umesh Gupta.
With a one year track record under its belt, having actually started operations in July 2006, Daman– the National Health Insurance Company – has a track record to pale its nearest and furthest competitors as well as its own target. It has hit the 700,000-mark members originally targeted for December 2007, and now looks set to...
Gargash, the largest insurance broker in the market with some 90 staff, is expecting to service a premium income of over AED200 million this year.
Noting that the UAE was a melting pot and a mosaic, Mr Murtaza Chevel, Managing Partner of Greenshield Insurance Brokers, said insurers have the choice of working with the brokers who understood their culture as all the expats maintained their ethnic links back home.
Cyclone Gonu caught the region by surprise in June, striking Oman and reminding everyone that the Middle East is susceptible to natural perils and should always be prepared. Mr Walid Jishi of Arab Loss Adjusters shares his experience and lessons learnt.
The insurance industry in Lebanon has always been viewed as a leader in the Mena region. With over 50 insurers and gross premiums of US$670 million in 2006, the new insurance law to be enacted is aimed at strengthening the sector and organising the industry players to create a sound regulatory regime operating in harmony to protect consumers...
Despite the numerous challenges faced, the Sudanese insurance sector is achieving remarkable pace of growth in terms of premium income. The average growth for the last five years is estimated to be at least 22% per annum, with gross premiums estimated to exceed SDG465 million for 2006. Many of the Sudanese insurance companies have either already...
The first multi-line insurer in Sudan with over 60% of the market is already taking the first step towards privatisation.
The very first Islamic insurance company in the world is still very much in the forefront of the business, achieving impressive growth and still contributing to industry growth. Last year, the Islamic Insurance Co (IIC) retained its second rank among the 14 Sudan insurers, achieving gross premium income of SDG60 million compared to SDG40 million...
In terms of financial strength, Juba Insurance Co started the year very strongly by raising its paid up capital from SDG100,000 to SDG500,000 while retaining its status as one the five biggest insurance providers in terms of premium generated.
Founded in 1989 by the Sudanese Cooperative Society, the Islamic Cooperative Bank, the Farmers Investment Bank and other notable financial and agricultural corporations, Watania Cooperative Insurance Co (WITCO) has a current paid up capital of SDG1.65 million.
Middle East Insurance Co (MEIC) is a private insurer established in 1981. It has a staff force of 45, three branches located in the capital Khartoum, and another two contact offices elsewhere. It achieved 30% growth in 2006 and is a good example of a general insurer in Sudan that has not relaxed its strict motor underwriting guidelines.
The latest player to enter the market, Al Salama Insurance Co (SIC) has been actively progressing, achieving a sales volume of SDG16 million in 2006 – a 20% increase over the previous year.
One of the older players in the market incorporated way back in 1967, Sudanese Insurance & Reinsurance Co (SIRCO), has proved to be a resilient company over the years.
The United Insurance Co (Sudan) Ltd (UIC) is the third-largest player in the Sudanese insurance market, with a premium income of SDG28 million in 2006 compared to SDG25 million in 2005.
National Reinsurance Co (NATRE), the sole reinsurance company in Sudan, is very mindful of the necessity of preparing for the next phase of the country’s economic expansion and the other privatisation and globalisation developments that are expected to take place in future.
Training centres play a vital part as the root to developing human capital to facilitate the expansion of the industry. The International Centre for Education in Islamic Finance, Islamic Banking and Finance Institute Malaysia and Malaysian Insurance Institute talk about challenges they face in coping with the dearth of talent in the wake of...
Labuan Offshore Financial Services Authority elaborates on newly issued guidelines on takaful and retakaful Business in the Labuan IOFC and the role it plays as the growing centre for retakaful in the Asia-Pacific region.
Mr Sohail Jaffer of FWU group gives a quick round-up of this dynamic world of the Shariah-compliant investments and shares a case study on how his Group gets the best out of the Islamic investments.
With the Munich-based FWU group being very active in designing customised “white label” investment solutions for its distribution partners and being a leader in family takaful and unit linked investment plans, we bring you a close-up of open investment architecture, and how with its Shariah Board it has developed unique Shariah...
With the 3rd International Convention on Takaful and Retakaful taking place in Kuala Lumpur this month, we bring you a personal message from Mr Zainudin Ishak, Chairman of the Organising Committee, on what to expect at this conference and what are the core issues that need to be tackled to responding to customers’...
The 9th Carthage Insurance & Reinsurance Meeting, entitled “Arab Insurance & Reinsurance Industry: Challenges and Opportunities”, was held in Carthage, Tunisia from 24-26 June 2007. Attending the conference were more than 300 insurance and reinsurance professionals and practitioners representing more than 20 countries from...
Based on latest Sigma Report figures and estimates collated by Swiss Re, total life insurance premiums written in the Middle East and North Africa (Mena) region grew by 13.6% to US$3.3 billion in 2006, while non-life premiums increased by 16% to $18.1 billion.
The Hawkamah Institute for Corporate Governance in Dubai and The Arab Forum of Insurance Regulatory Commissions have agreed to establish a Task Force on Corporate Governance of the Insurance and Reinsurance Industry in the region.
The Central Bank of Bahrain (CBB) is studying a proposal to amend capital requirements for branches of foreign insurance firms operating in the Kingdom that could mean the lifting of any minimum capital requirements for branches, a move that lifts the veil and recognise the support of the overseas parent company.
As part of ongoing efforts by the Bahrain Insurance Association (BIA) to consolidate the insurance sector in the Kingdom and make it more efficient, a group of Bahraini insurance companies signed an agreement to co-operate and set up procedures to facilitate motor claims recovery.
Scottish Re Group has carved out and sold its Middle East Life portfolio, worth around US$22 million in annual premiums, to Arab Insurance Group (Arig) on 1 July.
Hannover Rückversicherung AG (Hannover Re) is opening a Bahrain branch office. Expected to commence business operations early next year, the branch will concentrate on traditional reinsurance in the region.
With more than BHD1.2 billion worth of assets in Bahrain investments, the General Organisation for Social Insurance (Gosi) wants to increase its returns from the current 6.5% to 7.5%-8.5%, without significantly increasing its risk.
The temporary health insurance committee established by the Dubai Executive Council held an introductory meeting with the Dubai Health Authority and insurance industry professionals to discuss plans to introduce a comprehensive new health insurance law in the Emirates.
ICICI Prudential Life Insurance has established a representative office in Dubai, making it the first private life insurer from India to open an office in the UAE.
elseco limited, a wholly-owned subsidiary of the Allianz Group, has received a licence from the Dubai Financial Services Authority (DFSA) to operate within the Dubai International Financial Centre (DIFC).
Gross insurance premium income in Jordan grew by 19% to JD125.5 million at the end of May, according to data released by the Insurance Commission of Jordan (IC).
With a start up capital of JD10 million, Darkom, Jordan’s first housing loan insurance company, officially launched its operations on 14 July.
To cope with developments in the world insurance market, participants of the National Conference on the Future of Insurance in Libya recommended setting up a committee to review the laws that govern the insurance industry and its activities.
The Qatar Financial Centre Regulatory Authority (QFCRA) has put in place rules and principles that will enhance the business environment for insurance companies, and deliver measurable benefits for policyholders and investors.
The National Health Authority (NHA) expects that it will take about two years to prepare the administrative and information system required for launching the proposed health insurance scheme and put in place the related laws and regulations, said Dr Michael Walsh, Chief Executive of the NHA.
Al Khaleej Insurance and Reinsurance Co (AKHI) reported a 12% dip in its net profit to QAR32.92 million in the first half of 2007, despite recording healthy growth in net premiums of 48% to QAR50.56 million during the same period.
Qatar Insurance Co (QIC) plans to focus on international operations by establishing a holding company with subsidiaries specialising in Islamic insurance, real estate and asset management among other things.
Doha Bank has signed an agreement with American Life Insurance Co (Alico) to offer wealth management products targeting wealthy individuals, CEOs and business owners whose “survival is key” to the running of their businesses or partnerships.
Aon Corporation is applying for a licence to operate from the Qatar Financial Centre (QFC). Mr A Latif Al Rayes, Bahrain-based CEO of Aon’s Middle East region, expects the Qatar office to open in late 2007.
In line with its commitment to provide young Qataris with a career in the financial sector, the Qatar Financial Centre (QFC) Authority hosted a five-day in-house course leading to an Induction Certificate in Insurance Practice (ICIP).
NCCI made history again when it signed yet another contract with Suez Energy International to insure the construction of the new Jubail Water and Power Company project valued at SAR9.75 billion.
With a capital of SYP1050 million, Arabia Insurance Co Syria (Arabia Syria) officially opened its doors for business in late June this year to tap into the country’s burgeoning insurance business.
With the objective of reducing the shortfall in protection for both employees and key assets, Nexus launched a new comprehensive programme designed to provide bespoke financial products specifically for the Middle East’s small-to-medium business (SMB) sector which is deemed under-insured according to a recently-released report.
AXA Insurance Gulf will be offering its comprehensive healthcare plans to corporations and individuals in Abu Dhabi after receiving its medical licence from the General Authority for Health Services (GAHS).
Daman has assigned personnel in eight public hospitals to service its members and provide support, without interfering in any of the administrative processes in the hospitals.
Emirates National Group (ENG) and Colemont Group announced the joint launch of Colemont Insurance Brokerage Co in Abu Dhabi.
AM Best has affirmed the financial strength rating of B+ (Good) and the issuer credit rating of “bbb-” for Life Insurance Corporation (International) BSC (C) (LIC) (Bahrain).
AM Best has upgraded the issuer credit rating (ICR) to “bbb+” from “bbb” and affirmed the financial strength rating (FSR) of B++ (Good) of Trust International Insurance Co BSC (c) Bahrain (TIIC). The outlook for both ratings is stable.
AM Best Co has affirmed the financial strength rating (FSR) of B++ (Good) and the issuer credit rating (ICR) of “bbb” for Alliance International Reinsurance Public Co (Alliance Re) (Cyprus).
Standard & Poor’s Ratings Services (S&P) has raised its long-term counterparty credit and insurer financial strength ratings on UAE-based composite insurer, Oman Insurance Co, to ‘A-’ from ‘BBB+’.
Even though most attention given to Islamic finance has centred on bonds and banking, takaful is fast gaining ground. A number of international insurers are venturing into Islamic insurance to gain a foothold in this expanding market.
In order to develop a robust Islamic financial services industry (IFSI), the strong connections, interdependence and synergies between the Islamic banking, capital market and takaful segments need to be developed in a unison.
As part of Solidarity’s expansion strategy to further penetrate the Bahrain market and offer competitive insurance solutions that comply with Islamic Shariah, it has opened a customer service centre at the newly opened KFH Automall to provide the highest standards of customer services and at the same time offer family and general takaful...
In its efforts to raise funds for young orphans in the sultanate, Insurance IslamTabung Amanah Islam Brunei (IIT), TAIB’s subsidiary, has launched an orphanage fund project.
Takaful BIBD Sdn Bhd held a presentation at the Ministry of Finance (MoF) last month. Conducted by its Deputy General Manager, Erdiana Rahim, the presentation was for senior government officials and their staff members.
The Royal Brunei Police Force signed a comprehensive insurance contract with local financial institution Takaful IBB Berhad as part of an initiative to help protect the lives of police personnel and their families.
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), which is a member of the IDB Group headquartered in Jeddah, Kingdom of Saudi Arabia, has signed an agreement with the UAE Government.
ICIEC has allocated US$88 million for Iranian export insurance, reported Mr Tahmasb Mazaheri, Managing Director of Export Development Bank of Iran (EDBI).
Since 1 July, the Malaysian general insurance and takaful industry have adopted the Best Practices Framework (BPF) which aims to create a more dynamic and progressive insurance and takaful industry, by instilling greater market discipline and improving customer service standards.
Takaful and insurance industry players should not depend on the government for incentives to improve their penetration rates in the insurance market.
Malaysia’s MAA Takaful Bhd, the Islamic insurance arm of MAA Holdings Bhd, has received the official licence to commence operations and offer both family and general takaful products in the Malaysian market.
HSBC Bank Malaysia Bhd has launched HSBC Amanah Wealth Management which offers a full suite of Shariah-compliant products in savings, investments, protection and wealth distribution.
The CIMB Group has formalised its joint venture with Aviva that will see the insurer take a 49% stake in CIMB Group’s insurance subsidiary, Commerce Life Assurance and Commerce Takaful, for RM500 million.
Commerce Takaful Bhd is planning to enhance total gross contributions to over RM500 million this year, an increase from RM68 million in 2006.
Takaful Ikhlas, one of top three players in the Malaysian takaful insurance industry, is interested on strategic partnerships with local and foreign Islamic financial institutions.
British Islamic Insurance Holdings’ (BIIH) Board has announced its decision to raise its current paid up capital from £19 million to £50 million through a private placement with high-net-worth individuals, corporate and institutional investors in both the UK and the Gulf Cooperation Council regions (GCC).