Why is this an insurance growth region?

1
Middle East North Africa

• Why is this an insurance growth region?

2
MENA

• Profile
• An insurance growth region
• Current figures and outlook

3
More than 20 Countries

• Morocco, Algeria, Tunisia, Egypt,Libya
• Lebanon, Palestine, Israel, Jordan, Syria, Iran,
  Iraq, Turkey
• Bahrain, Kuwait, Oman, Qatar, Saudi Arabia,
  United Arab Emirates, Oman, Yemen.

4
Different economy features

• Common cultural heritage, but
• Various stages of economic development
• Different natural resources endowment (especially
  oil)

5
MENA Vs World

• Population
• 7.7 of the worlds population
• Total GDP
• Around USD 2 trillions

6
MENA

• Profile
• An insurance growth region
• Current figures and outlook

7
Development drivers

• Regulation
• Investment
• Takaful
• Compulsory insurance
• Bancassurance

8
United Arab Emirates

• BMA developed a world-class regulatory system.
• BMA is finalizing a new rules book for the growth
  of specific lines of business
• Takaful Retakaful
• Bancassurance Reinsurance
• Captive insurance
• Professional services (TPA)

9
Egypt Kuwait

• Egypt / Insurance reforms pushed forward
• New provisions to prevent money laundering
• Internal audit committees to ensure compliance
  with government regulations.
• Kuwait / New decree
• Revision of licensing requirements for brokers,
  agents and consultants

10
Jordan Libya

• Jordan / New set of regulations
• Minimum required capital increased
• Solvency margin increased
• Libya / Insurance market opened
• New insurance companies are expected to enter the
  market.

11
Oman Saudi Arabia

• Oman / Transfer of regulation authority
• From Ministry of Commerce and Industry to Capital
  Market Authority.
• Saudi Arabia / New regulation and authority
• In 2003, promulgation of the long-expected
  regulation relating to the establishment and
  licensing of (re) insurance companies.
• SAMA is the insurance authority body

12
Development drivers

• Regulation
• Investment
• Takaful
• Compulsory insurance
• Bancassurance

13
Investments

• New investments thanks to planned policy reforms
  
• 16 Arab MENA nations showed their intention to
  pursue their comprehensive reform Economic,
  political, social, educational and legal.
• New opportunities for insurance services from
• Privatization programmes,
• Expected rapid growth in infrastructure
  development in the Gulf Cooperation Council (GCC).

14
Investments

• Expected new investments driven by liberalization
  of the insurance sector
• Continuing and encouraging reform in insurance
  legislation, particularly in Saudi Arabia.
• Opening of markets in Libya and Syria and
  untapped potential in Iraq.
• Global liberalisation of financial services as
  part of WTO membership.

15
Development drivers

• Regulation
• Investment
• Takaful
• Compulsory insurance
• Bancassurance

16
Takaful

• Takaful products contributed are expected to
  continue to contribute to insurance business
  growth.
• Innovative customer needs driven products
• Overcome social and religious insurance demand
  inhibitors
• Interest for Takaful is growing among customers.
• Number of Takafuls companies is growing fast.
• Number of Takaful windows is growing as well

17
Development drivers

• Regulation
• Investment
• Takaful
• Compulsory insurance
• Bancassurance

18
Compulsory insurance

• In UAE, demand for insurance increased
  exponentially due to the introduction of two
  compulsory lines
• Third party motor liability
• Medical protection.
• Saudi Health Insurance Market expected to grow by
  four times in a very short term reaching USD 1
  billion.

19
Compulsory insurance

• Algeria passed a law in August 2003, following
  the earthquake in May of that year, making
  insurance against natural hazards obligatory

20
Development drivers

• Regulation
• Investment
• Takaful
• Compulsory insurance
• Bancassurance

21
Bancassurance

• In Saudi Arabia,
• SAMA allowed local banks collaborate with
  insurance companies in the family takaful field
  through Bancassurance.
• Bancassurance has improved production levels and
  is expected to account for 30 of market by 2010.
• Syria, which has an important banking potential,
  encouraged bancassurance development by the
  opening its financial, banking and insurance
  sectors.

22
MENA

• Profile
• An insurance growth region
• Current figures and outlook

23
Premium income in GCC
24
Premium income in N-Africa
25
Growth rates
26
2004 MENA Premium income
MUSD
27
2010 premium income (e)
MUSD
28
Thank you

• Ref The ARAB BUSINESS MAGAZINE Al- Iktissad
  wal- Aamal (March 2006).
• The Annual ARIG Review of the Arab Insurance
  Market 2003.
• The BMA Islamic Finance Review (issue 2 10).
• The Insurance Review (issue 6).
• LArgus de lAssurance (July 2005).