The General Arab Insurance Federation (GAIF) issued some recommendations after discussions with members at its 32nd General Conference held from 24 to 27 June in Hammamet, Tunisia.
The recommendations for the industry include the following:
- Insurers should provide full coverage for risks relating to climate change as such risks become more widespread in the Arab world.
- Insurers should continue to develop online products to respond to the needs and wants of the public, and also to evaluate the affordability of such products.
- The industry should exploit microinsurance for growth, looking for creative ways to promote this alternative distribution channel. Regulators are urged to work towards creating a conducive legislative environment to develop microinsurance, adopting relevant practices from more mature markets.
- Regulators should raise the level of professionalism in takaful.
- GAIF should future-proof its strategy by amending and revising it, including introducing best practices for governance.
- The Federation aims to restore the capacity of the Arab reinsurance pool. The managing company of this pool is to intensify its marketing efforts.
- Arab insurance markets need to increase the exchange of risks and experiences on a larger scale to serve the interests of the regional industry.
- The industry should try to absorb the available capacities of Arab reinsurers before ceding business to foreign markets to retain premiums within the region. It is recommended that a study be conducted on the reasons for premiums flowing out from the region.
- Insurers are urged to view challenges facing the Arab insurance industry as opportunities to achieve better growth rates. The industry must continually review its work plans and upgrade the skillsets of its workforce.
With its theme of ‘Digital Transformation and the Insurance Industry in the Arab World’, this year’s Conference attracted over 1,400 participants from 51 countries. The next GAIF Conference will be held in 2020 in Algeria.
At the 31st GAIFConference completed on 26 May 2016 in Beirut, Conference members adopted the following resolutions:
- carry out a survey on the impact of earthquakes on the insurance market,
- promote foreign investment as well as M&As,
- reinforce market regulation measures,
- train executive staff members.
5th annual Middle East Insurance Awards (MIIA)
Reminder: Nominations close on 12 July for MIIA which is organised by Middle East Insurance Review.
The Awards Presentation Gala Dinner will be held on 26 November 2018 in Dubai.