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Insurance
 
 
 
Last Update: Jul 2008
 
  • Insurance is increasingly understood as social and economic necessity in the Middle East
  • The field of providers is fragmented and industry structures are heterogeneous across MENA countries
  • Underwriting activity in markets across the region is projected to expand at double-digit growth rates until 2012, accelerating the trend from the past five years
  • Mandatory insurance schemes for health and motor covers are leading drivers of premiums growth
  • Earnings of insurance companies depend greatly on investment returns
  • Shortcomings in regulations, manpower, and general awareness are potential bottlenecks for the insurance industry
  • The insurance industry is needed in preparing for and meeting the region’s changing socioeconomic needs.

 

The insurance industry is a new focus point for economies in the Middle East and North Africa. Following demographic changes in the second half of the last century and a new surge in wealth since 2002, countries in the region have shown growing interest in risk mitigation through insurance.

 

In turn, international insurance companies have started to express greater interest in the region, which is one of the world’s least developed insurance markets – or one with the greatest implied potentials for insurance growth. 

 

The industry faces a combination of significant challenges and great opportunities, which has increased the attention which investors pay to insurance markets and operators. Without neglecting the seriousness of the challenges it has to navigate, growth is the medium and long term outlook for this industry. 

 
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Company Rankings in 2007
 
Ranked by
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  Company Country Gross Premiums Written (USD)
1. The Company for Cooperative Insurance Saudi Arabia 510,311,465
2. Qatar Insurance Company Qatar 417,425,019
3. Oman Insurance Company UAE 412,295,029
4. Abu Dhabi National Insurance Company UAE 315,278,539
5. Gulf Insurance Company Kuwait 279,185,626
» View Full List
 
Significant Developments
 
Date Country Type News & Comments
Aug08 UAE New Entrants Dar Al Takaful commences trading on the Dubai Financial Market. The company has been set up in July 2008 to provide general and family Takaful insurance services by following the Wakeel (agent) model for managing insurance contributions from policyholders. It offered 55% of its AED 100 million capital for subscription through an IPO for 55 million shares at AED 1.04 per share that was covered 89.6 times by demand. On their first trading day, Dar Al Takaful shares closed 437.5% up when compared with the issue price.
Jul08 UAE Regulatory and Supervision The UAE has added valid health insurance coverage to the conditions which persons have to meet when applying for visit visa and several other visa types under regulations that have come into force at the end of July 2008. Insurers have started offering packages that are tailored to match the new requirements; basic covers are available from ca $10 for a one-month policy.
Jul08 Bahrain Other Event Bahrain inaugurates training program to groom insurance managers. Developed by the kingdom’s Labour Fund in collaboration with the Bahrain Insurance Association (BIA) and the Bahrain Institute of Banking and Finance (BIBF), the program is open for Bahraini nationals with recent university degrees from relevant fields. The program offers 40 places for 15-month insurance studies that provide three months of intensive training at the BIBF followed by one-year job placements at insurance companies which are accompanied by continued studies. With three classes in five years, the program will train up to 120 new insurance managers.
Jul08 UAE New Entrants Takaful Al Emarat debuts on the Dubai Financial Market. The company, which has been established in February 2008 through a joint venture of Al Buhaira National Insurance and Austrian insurance group Uniqa, will provide Takaful insurance services with emphasis on health and family Takaful. The new company launched an initial public offering for 82.5 million shares, representing 55% of its AED 154.5 million capital, at an issue price of AED 1.03 per share. The March 2008 IPO was covered 51 times by demand and the stock closed its first trading day up 376.7% from its issue price.
Jul08 Bahrain
GCC		 New Entrants ACR ReTakaful MEA is licensed by the Central Bank of Bahrain as Islamic reinsurance company. The Sharia-compliant firm is the first operational entity of ACR ReTakaful Holdings, the joint venture established in May 2008 by Dubai Banking Group, state-owned Malaysian investment holding Khazanah Nasional, and Singapore-based Asia Capital Reinsurance Group (ACR). Based in Bahrain, ACR ReTakaful MEA will have a capital of $200 million. It will serve the Islamic reinsurance market in the Middle East region and underwrite large risk business on the general side.
 
» View All Developments
 
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