While many of the Middle Eastern and African rated insurers are well capitalised to offset regional risks, their ERM approaches relating to governance practices need more consideration, according to AM Best’s latest report. Although suppressed oil prices have impacted the economies of countries in the Middle East and Africa region,...
Insurers looking to augment constrained technical returns will seek to increase their cash collection and deploy it in income-yielding assets, according to A.M. Best’s latest report. The old adage “cash is king” continues to hold true in modern times, particularly in the insurance industry. Insurers looking to augment constrained technical...
The Oman insurance industry has been growing from strength to strength owing to regulations and strategies that are aligned to sustainable development.
2019 may have a renewed focus on alternative third-party capital, along with an emphasis on underwriting discipline, according to A. M. Best. A.M. Best has forecast a negative outlook for the non-life reinsurance sector owing to a continued competitive market environment where pricing has hit rock bottom. In their latest...
While 2017 may not have been the best year in terms of profitability of the insurance industry, the new motor regulations and other amendments will see the insurance market being impacted.
A.M. Best examines the reinsurance market in the Middle East and North Africa region and affirms the resilience of the industry. The Middle East and North African (MENA) reinsurance industry is characterised by its challenging market conditions, borne out of unabating pressure on pricing, overcapacity, and a higher-than-expected number of...
While construction outlook is positive in the GCC, there are still misconceptions surrounding the effectiveness of insurance solutions such as inherent defects insurance, states a Marsh Insights report. According to the World Bank, GDP across the GCC is expected to increase 2.1 percent in 2018 and 2.7 percent in 2019....
M. Best examines issues facing dependence on Qard Hasan and why steps should be taken to halt this practice. In recent years, the overreliance on the Qard to fund continued policyholder deficits has led to the so-called ‘Perpetual Qard Syndrome’. According international ratings agency A.M. Best, the need for the...
While the net income of Islamic insurers seems to be on the decline, the sector will stay profitable in 2018, states S&P Global Ratings’ recent report. The Islamic insurance sector continues to face secular challenges around relatively concentrated and undifferentiated business models and high expense ratios that leave them susceptible...
Premium takes a look at the analysis of the Middle East and Africa insurance sector in Swiss Re’s latest Sigma study of the global primary insurance industry. Globally, the economy saw considerable improvement in 2017, with real gross domestic product (GDP)1 rising by 3.3 percent. Advanced markets, with the exception...
