Mutuality, Cultural Diversity and Development

1
Mutuality, Cultural Diversity and Development
21 May 2004 Tunis, Tunisia
2
DEVELOPMENT OF TRADITIONAL BRANCHES IN
DEVELOPING MARKETS
21 May 2004 Tunis, Tunisia
3
Issues in a changing insurance market, the case
of the Middle-East R.
Farid BENBOUZID
21 May 2004 Tunis, Tunisia
4
PRESENTATION

• THE NOTION OF MARKETS IN THE MENA REGION (MIDDLE
  EAST NORTH AFRICA) SHOULD BE CLARIFIED IN ORDER
  TO ALLOW A CLEAR ENOUGH ANALYSIS OF THE EXPECTED
  PROGRESS IN TERMS OF INSURANCE PENETRATION AND
  PRODUCT EVOLUTION.

5
PROGRESS FACTORS

• MARKET TRANSFORMATION
• BIRTH OF TAKAFUL
• DOMESTIC MARKET
• EXTERNALIZED MARKET
• PERSONAL INSURANCES

6
A NEW VISION OF MARKETS

• CONCEPT OF HOMOGENEOUS MARKET IS NOT APPLICABLE
  TO EMERGING COUNTRIES
• SEPARATION BETWEEN REAL DOMESTIC MARKET AND
  VIRTUAL EXTERNALISED MARKET
• INSURANCE DEVELOPMENT SHOULD GO TOGETHER WITH
  RISK TAKING

7
CONSTRAINTS

• DISTRIBUTION
• INCOMES
• POPULATION
• SERVICES
• CAPITALISATION

8
SUPPLY EVOLUTION

• NECESSITY FOR COMPANIES TO ADAPT
• DOMESTIC MARKET PRODUCTS
• MIMETIC SUPPLY

9
DIVERSITY AND POTENTIAL

• INCOME AND MARKET SIZE
• DEVELOPMENT CAPACITY
• THE FABLES OF INSURANCE CULTURE AND
  INSURANCE

10
PRODUCTS

• IMPOSSIBLE PRODUCT HOMOGENEITY
• IDENTIFY THREE PRODUCT LINES ADAPTED TO DIFFERENT
  POPULATION STRATA
• SIMPLIFIED PROCEDURES AND DISTRIBUTION COSTS

11
CONCLUSION

• INSURANCE PROGRESS IN EMERGING COUNTRIES IS
  UNDOUBTEDLY LINKED TO THE CAPACITY OF INSURANCE
  STRUCTURES TO PROVIDE PRODUCTS ADAPTED TO
  CLIENTS. INSURANCE CULTURE CAN ONLY DEVELOP FROM
  MASTERING A MINIMAL INSURANCE OFFER.