Reinsurance commission is still a key driver of profitability for primary insurers in the Middle East, observes Michael Dunckley. Introduction Retention of insurance premiums and risk by the primary market is significantly lower in the Middle East than the global average. This is driven by a number of factors including...
Actuarial pricing and sound underwriting techniques can help dispel any illusions regarding capital at risk, writes Luis Portugal. Generally, pricing is an important item on the list because the business of insurance needs to be sustained. However, it is misleading and an opportunity cost just to think like this. Insurance...
The UAE insurance market needs to evolve, to stay relevant, writes Jon Richards. Insurance has been playing a valuable and essential role in society for many years. The first insurance contract was written back in the early fourtheenth century and since then, there has been very little development in the way...
Josianne El Antoury and John Barlow examine the new UAE Commercial Companies Law and its implications on D&O coverages. The new United Arab Emirates (UAE) Commercial Companies Law (Federal Law No. 2 of 2015) (the Companies Law) came into force on July 1, 2015, replacing the previous Commercial Companies Law...
Chris Pleasant emphasises the role of the reinsurance brokers who know how to play the game of low commissions vs overcapacity. We are facing a protracted downturn. Overcapacity for both insurance and reinsurance has been a feature of the MENA market for as long as anyone can remember. Are brokers...
Hackers are increasingly viewing companies in the region as vulnerable due to their lack of preparedness. Therefore companies in the MENA region are fast becoming an easy target, writes Simon Bell. With the population of the United Arab Emirates estimated at 9.1 million and with a GDP of USD402 million;...
Suresh Nair looks at a growing trend in the insurance sector worldwide which has the potential to change dynamics in the industry. The concept of `Six degrees of separation’ holds that a person is connected to any other person on the globe within just six steps by way of introductions. Rapid advancement...
Peter Hodgins and Tom Bicknell list out some of the existing barriers in the market, as well as few developments that may impact M&A activity. Premium growth in the UAE market continues at a strong 13.5 percent to AED33.5 billion (approximately USD9.12 billion) in 2014, a 1.3 percent increase on...
Finding the right balance between coverage and premium requires quite a few considerations, explains Rahul Roy. The very core of a broker’s job and also one of the quintessential dilemmas that is faced every day across all classes of risk is determining what level of coverage a client wants, and...
Companies must be mindful of the DFSA’s active approach to enforcements. Carol-Ann Burton explains why it is good to be familiar with the regulations. A robust enforcement regime is a cornerstone of any sophisticated market and serves to evidence the integrity and transparency of that market. It should therefore be of little...
