“Insurance is one of the most resilient and stable markets with demand on its products and services stable at relatively high levels, despite the global financial crisis,” Adnan Ahmed Yousif and President and Chief Executive of Al-Baraka Banking Group (ABG) in his opening remarks at two-day Professional Liability Insurance Forum, said.
In his speech titled ‘necessities and challenges: a preliminary strategic vision’ he urged to take into account the challenges facing the insurance sector in particular and the financial industry at large, that is a mix of factors that had rarely come together, including political turbulence (that turned in some cases into armed revolts that might change a lot on the ground includes the policies and tools of risk management), economic uncertainty and the emergence of diverse opportunities at the insurance sector.
“It will also be a good opportunity to assert Bahrain’s status as an international business hub with a pioneering role and a robust reputation region wide,” he added.
“Among these opportunities emerges the professional liability insurance product as one of the most important answers by the insurance sector over the past two decades as it could play a big role boosting economic stability, being closely tied to the middle class with its wide-scale economic implications.
“I personally expect that professional liability insurance would become a major growth engine if suitable conditions were available including the visionary regulatory infrastructure and the integration into national economy segments, including bodies such as Tamkeen, focused on empowerment and capacity building,” he added.
“And as I said earlier, this forum is a considerable step in the right direction to precisely identify future challenges and come up with tangible results to help enhance the role of insurance in supporting economic stability and growth,” he said.
“There are of course several challenges that need to be given more attention during the forum discussions such as operation and risk management. Among these challenges also is pricing mechanisms given its special significance on the level of adding value to economies.
“We cannot discuss value addition without tackling the information of the economic middle class, a sector which most targeted by insurance solutions, alongside with paying more attention to enhancing administrative governance, training, specialized rehabilitation in the areas of risk management, operations, product structures, vis-à-vis the needs of the market and target segments. I believe this is the biggest challenge that shall be tackled by business leaders, whether regulators or players,” Adnan explained.
“Given the correlation between economics and politics in our region and the world on one side and the performance of our institutions on the other, we are all looking at ways to get out of the current crisis with programmes and policies that cater to the needs of our societies.
“That leads me to assert the importance of working towards the founding of information systems and the development of risk management methods, rather than solely depending on the programs recommended by the Basel Committee.
“And before concluding my speech, I shall put it clearly that the purpose of this address is not criticizing or downplaying any current policy. It is rather an invitation to us all to try to find practical solutions for a few standing challenges, such as capacity building especially in the field of market information management and organization,” he added.
“Hence we can say this forum is as a serious effort to brainstorm and exchange ideas and expertise on how to develop the professional liability insurance market and achieve the goals behind that,” he added.
“I believe the brothers organizing the event under the leadership of Bahrain Insurance Association (BIA) and the General Arab Insurance Federation (GAIF) have been totally successful choosing the topic of the forum, Professional Liability Insurance. It is the response to the current challenges facing global economy.”
“Once again I would like to thank the brothers at the Bahrain Insurance Association (BIA) and The General Arab Insurance Federation (GAIF) for selecting this significant topic. I hope in the foreseeable future this forum will turn into a permanent gathering for strategic thinking and finding solutions for the economic stability of the region.”