The insurance penetration in the Middle East is currently around 1% which is substantially lower in comparison to other emerging markets, David McLean, CEO MEIF, said.
“Let alone developed markets, and this denotes potential for tremendous growth in the next couple of years. Robust economic growth in the region will continue to be the most powerful driver of growth in the insurance market going forward. However as the Middle East insurance markets continue to develop and mature, it is very important for the industry players to continuously assess their business models and strategies in order to ensure robustness.”
This year the 9th Annual Middle East Insurance Forum (MEIF 2013) brought together more than 500 key regulators and industry decision-makers for high-profile discussions on thriving in an increasingly competitive regional insurance market.
Convened under the patronage of the Central Bank of Bahrain, the 9th Annual Middle East Insurance Forum (MEIF 2013) witnessed a high profile opening at the Gulf Convention Centre – Gulf Hotel in the Kingdom of Bahrain. Confirming its position as the largest and the most influential annual gathering of regional insurance industry leaders, MEIF 20123 gathered more than 500 senior decision-makers from over 160 organizations for discussions that focused on balancing growth with profitability and identifying new strategies to maintain the growth momentum while boosting technical and operational profitability in an increasingly competitive regional insurance market.
“The challenges of rising competition for market share from both regional operators and multinationals place tremendous pressure on profitability due to the fact that price have remained as a major differentiating factor,” he added.
“With significant untapped potential in the region, it is essential that leading players in the industry focus on providing sophisticated and differentiated products with significant value propositions, promote transparency and adopt the best international standards in order to optimize the growth potential and ensure long-term success in the dynamic Middle East insurance market.”
The two day event was inaugurated with a keynote address delivered by Abdul Rahman Mohammed Al Baker, Executive Director – Financial Institutions Supervision, Central Bank of Bahrain, who assessed how enhancing regulatory frameworks can support the further development of the insurance industry in the Middle East.
The inaugural address was immediately followed by a special keynote address by Enrico Bertagna, Head of Southern, Eastern Europe and Africa; Country Manager for Italy at Lloyd’s.
“In its relatively recent history, the region’s insurance industry has made great progress. But as the business needs of the Middle East grow ever more sophisticated, more inter-connected and more global, the insurance industry in this region must do the same,” assessing developments in the global insurance industry and their key implications for the Middle East, Bertagna, said.
A key highlight of this year’s MEIF was the industry leaders’ power debate session which featured high-level debates on maintaining growth momentum while boosting technical profitability. The debates, led by Justin Balcombe, Senior Director, MENA Insurance Sector Leader, Ernst & Young and featuring Ayman Adel El Hout, Group Vice President – Operations, The Mediterranean & Gulf Insurance & Reinsurance Company (B.S.C) MEDGULF; Jamil R. Bahou, Managing Director, Crescent Global Group; Alexis de BEAUREGARD, Chief Officer – Marketing and Retail Product Offering, AXA Insurance (Gulf) B.S.C.; and Mario Valdes, General Manager, MetLife Alico Gulf, focused on rethinking growth strategies and building a profitable growth path in the Middle East insurance industry.
“In the past few years, the insurance industry across the globe has been witnessing ongoing shifting tides. Low interest rates, lasting macro-economic risks and stagnating mature markets are pushing insurers to allocate resources to markets that will boost their growth engine. Where the Middle East insurance stands today is very praiseworthy. In fact, the region has shown its capacity to not only withstand turbulent times but also managed to consistently achieve robust results. Today, the level of investments in infrastructure, continuous population growth and the rise of emerging and mass affluent customer segments are few of the indicators that attest of the promising prospects of the life insurance industry in the region,” Mario Valdes, General Manager, Metlife Alico Gulf said.
“Once again, MetLife Alico is delighted to demonstrate its commitment to the development of the insurance sector by taking part in the renowned Annual Middle East Insurance Forum (MEIF). We look forward to leveraging our heritage and thought leadership capabilities to partner with industry leaders and collaboratively anticipate the opportunities and challenges that lie ahead,” he added.
The MEIF Exhibition, which was held along the sidelines of the conference, was inaugurated by Abdul Rahman Mohammed Al Baker, Executive Director – Financial Institutions Supervision at the Central Bank of Bahrain and showcased the latest products, services and innovations from over 35 exhibitors.
MEIF 2013 continues on the 5th of February and features high-profile sessions on risk management frameworks, and the prospect for mergers and acquisitions in the regional insurance industry. Day 2 of MEIF 2013 will also feature interactive roundtables on key areas including re-insurance, captive insurance, and an update on major developments in the insurance sectors of key countries across the Middle East region.
