MANAMA: Region’s insurance industry remains fragmented and the sector needs to address a number of key challenges to drive further growth of insurance in the region and bring developments in line with more advanced insurance markets in other parts of the world, according to an expert.
David McLean, Chief Executive of the Middle East Insurance Forum ahead of MEIF 2014 which opens on Monday in Manama said over the last several years regulatory authorities in the Middle East had taken critical steps to develop their respective local insurance markets. As a result, he added, the region’s insurance market has enjoyed significant development and exciting growth rates.
Leading players, industry thought leaders and key regulators in the international and regional insurance industry will take part in the 10th Anniversary Special Edition of the Middle East Insurance Forum (MEIF 2014), which is set to commence on the 10th of February 2014 at the Gulf Hotel in the Kingdom of Bahrain.
“The annual Middle East Insurance Forum (MEIF), which over the last 10 years has established its pre-eminent position as the region’s largest and most influential annual gathering of insurance industry leaders, is set to continue its tradition of supporting growth, excellence and innovation in the regional insurance industry and is poised break new records in 2014 with more than 550 attendees representing over 250 leading global organizations set to join more than 50 international speakers and thought leaders for a very special and unique event that will chart a new road map for the further growth and development of the dynamic insurance industry in the Middle East.”
Held under the theme “Strengthening the Regional Insurance Industry: Overcoming Competitive Pressures & Capturing Profitable Growth”, the two day event convened under the patronage of the Central Bank of Bahrain is set to gather more than 550 international industry leaders representing over 250 global institutions, industry thought leaders and key regulators in the regional and international insurance industry for high-profile discussions focused on strengthening the regional insurance industry, overcoming competitive pressures and capturing profitable growth.
The two day event is set to begin on the 10th of February 2014 with an inaugural keynote address by Abdul Rahman Mohammed Al Baker, Executive Director – Financial Institutions Supervision at the Central Bank of Bahrain.
“Looking ahead, there is substantial new and untapped potential for the regional insurance industry in the coming years driven by capital investment and government spending especially in the area of new infrastructure projects over the next decade. This is expected to result in a surge in insurance activity and a growth in gross premiums in the region,” confirming his participation at MEIF 2014 and commenting on the Central Bank of Bahrain’s support for the event, Abdul Rahman Mohammed Al Baker, said.
However, he added, regional insurance players must address key competitive challenges and balance top line growth with profitability. It is increasingly vital that insurance business should be underwritten and priced in a way that all the inherent risks are considered.
Furthermore, he said, implementing a strong risk management policy and strategy whereby underwriting, pricing, investment and operational risks are managed effectively to achieve sustainable profitable growth.
“The annual Middle East Insurance Forum over the last 10 years has played a key role in supporting growth, excellence and innovation in the regional insurance industry. The Central Bank of Bahrain is once again delighted to be supporting this prestigious event which is now celebrating its 10th Anniversary and we look forward to meeting the industry leaders at this important gathering and discussing key strategies towards building a stronger insurance industry in the Middle East.”
This year’s MEIF features a powerful line-up of high-profile speakers. Key highlights of MEIF 2014 include a special international keynote session featuring Lutfi Fadel El-Zein, Chairman, Medgulf and Geoff Riddell, Member of the Group Executive Committee: Chairman – APMEA, Zurich Insurance Group Ltd. The session, focusing on identifying the latest developments in the international insurance industry and implications for players in the Middle East, will analyse the major trends reshaping the insurance industry in key developed markets across the world and will also discuss how the regional insurance industry needs to be reshaped for greater success.
“The true value proposition of insurance is currently not being fully realized in the Middle East with insurance penetration in the region lagging behind other major markets across the world,” Geoff Riddell, Member of the Group Executive Committee: Chairman APMEA, Zurich Insurance Group Ltd, said.
“The development of the insurance industry in the region is also at an earlier stage of its evolution when compared to the US, Europe and even other developing markets in Asia or Latin America. This in turn does, however, also provide an opportunity for the insurance industry in the Middle East in that regulators and insurance companies alike can draw on the experiences and best practices of other jurisdictions. As the needs of businesses and individual customers in the Middle East grow ever more sophisticated, more interconnected and more global, the insurance industry in the region must also do the same”.
“I am delighted to be a part of the 10th Anniversary Special Edition of the Middle East Insurance Forum (MEIF 2014) and I look forward to the critical discussions that will focus on reshaping the regional insurance industry for greater success,” Riddell added.
MEIF 2014 will also include an exclusive on-stage interview session with two of the leading pioneers in the Middle East insurance industry. Interviewed by Sivam Subramaniam, Editor-in-Chief, Asia Insurance Review & Middle East Insurance Review; Jerome Droesch, CEO – AXA Gulf and Middle East Region, Chairman of AXA Cooperative, Member of the Executive Board of AXA Mediterranean and Latin America Region and Board member of AXA Middle East; and Sameer AlWazzan, Chief Executive of Bahrain National Holding will share their unique insights into the progress of the regional insurance industry over the past decade and what the industry needs to do in order to achieve the next level of growth.
A major highlight of this year’s MEIF 2014 will also be the industry leaders’ power debate session, which will feature significant debates and discussions on overcoming intensifying competitive pressures in the Middle East insurance industry. The debate led by Safder Jaffer, Managing Director & Consulting Actuary – Middle East & Africa, Milliman; and featuring Jamil R. Bahou, Managing Director, Crescent Global Group; Yassir Albaharna, Chief Executive Officer, Arab Insurance Group (Arig); Youssef Al Kareh, General Manager, Solidarity General Takaful; and Farid Chedid, Chairman & CEO, Chedid Re will discuss key strategies for balancing premium growth with technical profitability and will also analyse how leading industry players are evolving and transforming their business to overcome the challenges of increasing competitive pressures.
The 10th Anniversary edition of the Middle East Insurance Forum will also feature a special awards ceremony that will recognize excellence, innovation and pioneering initiatives in the regional insurance industry.
“The insurance industry in the Middle East continues to make steady progress and enjoys a CAGR higher than the global insurance industry over the last five years,” Mohamad El Zein, Director/Group Chief Financial Officer of Medgulf, said.
“The key factors that have propelled the insurance industry in the region include various demographic factors, such as a renewed focus on economic diversification in key regional markets, compulsory health insurance schemes, an evolving regulatory framework, and an increased consumer awareness level about insurance products and their benefits. Given the tremendous growth opportunities, the insurance market in the region is increasingly becoming congested by a large number of local and foreign players entering the market. The growing competition is affecting the profitability levels and the increasing fragmentation is affecting the underwriting capabilities of the companies. These fundamental challenges must be addressed urgently so that the insurance industry in the Middle East is equipped to serve the increasingly complex risks in the region.”
“We have been associated with the Middle East Insurance Forum for many years now and we are once again delighted to be supporting the 10th Anniversary edition of this high-profile gathering of international insurance industry leaders,” he added.