iPhone | iPad
Android
Huawei
Indian cinema's biggest night was an epic celebration of Bollywood
KT APPDOWNLOAD
Insurance Industry Set to Grow
DUBAI — The need to foster higher standards and greater cooperation to sustain growth were the key messages emerging at Insurex 2009, an annual conference for Middle Eastern insurers.
Delegates from across the region discussed key challenges facing the Middle East’s insurance industry at the two-day conference that ended on Wednesday. Although the industry is facing the inevitable challenges posed by global economic turmoil, Middle Eastern insurers are well positioned for growth. The emergence of compulsory insurance classes, principally motor and health insurance, will continue to drive demand — where health is expected to replace motor as the largest class of business in the region over the next ten years.
Another key factor to affect the development of the industry is population growth; currently the region has a younger demographic and as it matures the demand for insurance products will grow. Life assurance was identified as another key potential growth driver for the industry. The penetration of life assurance products has been limited in the Middle East, with low levels of awareness for products. Life insurance business in the UAE is expected to grow at least by 16-20 per cent annually until 2012, despite underdevelopment of its financial infrastructure for life insurance, the legal framework and the bureaucracy, Fareed Lutfi, Secretary General of Emirates Insurance Association told Khaleej Times on the sideline of Insurex 2009. Despite high GDP levels, penetration of life insurance in the UAE is as low as 0.3 per cent and this is similar to several other countries in the Middle East. By 2012, it is expected that penetration will rise to 0.5 per cent. Portfolio structure of Middle East and North Africa region consists of life business 20 per cent and 80 per cent non-life business, according to Lutfi. The largest class of insurance in the Middle East is car insurance. Within five to ten years, health will be the largest class in the Middle East,
he said.
Health insurance for expatriates is mandatory in Abu Dhabi and Saudi Arabia, and similar moves will be made in Bahrain and Qatar. It is also expected that Saudi Arabian authorities will eventually roll out mandatory health insurance to nationals in the private sector. The Middle East insurance landscape also remains heavily fragmented, with over 400 companies generating a total premium level of less than $15 billion. In 2007, written premiums for the Middle East and North Africa totalled approximately $15b, while insurance density was just $45 per capita, according to statistics from the General Arab
Insurance Federation. In 2007, Takaful grew by 70 per cent, compared with conventional insurance which grew
at 40 per cent. Yet, the insurance market in the region remains fragmented — a key challenge to its future
development.
Over 350 companies are operational in the region, and accounting standards as well as risk management strategies remain inconsistent.
More news from
UAE airlines have suspended flights to Lebanon until October 1 due to the ongoing crossfire
The United States and Saudi Arabia put him on their respective lists of designated terrorists in 2017
He also wished for strength and comfort for their loved ones during this difficult time
Sheikh Hamdan discussed ways to strengthen relations and the two countries also signed several bilateral agreements
Earlier in the day, Hezbollah has confirmed the death of its leader Hassan Nasrallah
Authorities said at least 254 people have died and 65 missing in landslides, floods and lightning strikes since mid-June when the annual monsoon rains started
The Bollywood awards night will see one of the most celebrated actors in the world taking the stage after several years