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MORO 2006 - London June 13th 3
More than 20 Countries
Morocco, Algeria, Tunisia, Egypt,Libya Lebanon, Palestine, Israel, Jordan, Syria,
Iran, Iraq, Turkey Bahrain, Kuwait, Oman, Qatar, Saudi
Arabia, United Arab Emirates, Oman, Yemen.
MORO 2006 - London June 13th 4
Different economy features
Common cultural heritage, but : Various stages of economic development Different natural resources endowment
(especially oil)
MORO 2006 - London June 13th 5
MENA Vs World
Population : – 7.7% of the world’s population
Total GDP :– Around USD 2 trillions
MORO 2006 - London June 13th 7
Development drivers
Regulation Investment Takaful Compulsory insurance Bancassurance
MORO 2006 - London June 13th 8
United Arab Emirates
BMA developed a world-class regulatory system.
BMA is finalizing a new rules book for the growth of specific lines of business :– Takaful & Retakaful– Bancassurance & Reinsurance– Captive insurance– Professional services (TPA)
MORO 2006 - London June 13th 9
Egypt & Kuwait
Egypt / Insurance reforms pushed forward– New provisions to prevent money laundering– Internal audit committees to ensure compliance
with government regulations.
Kuwait / New decree– Revision of licensing requirements for brokers,
agents and consultants
MORO 2006 - London June 13th 10
Jordan / New set of regulations– Minimum required capital increased– Solvency margin increased
Libya / Insurance market opened– New insurance companies are expected to
enter the market.
Jordan & Libya
MORO 2006 - London June 13th 11
Oman & Saudi Arabia
Oman / Transfer of regulation authority– From Ministry of Commerce and Industry to
Capital Market Authority.
Saudi Arabia / New regulation and authority– In 2003, promulgation of the long-expected
regulation relating to the establishment and licensing of (re) insurance companies.
– SAMA is the insurance authority body
MORO 2006 - London June 13th 12
Development drivers
Regulation Investment Takaful Compulsory insurance Bancassurance
MORO 2006 - London June 13th 13
Investments
New investments thanks to planned policy reforms :– 16 Arab MENA nations showed their intention to pursue
their comprehensive reform : Economic, political, social, educational and legal.
New opportunities for insurance services from :– Privatization programmes,– Expected rapid growth in infrastructure development in
the Gulf Cooperation Council (GCC).
MORO 2006 - London June 13th 14
Investments
Expected new investments driven by liberalization of the insurance sector :– Continuing and encouraging reform in
insurance legislation, particularly in Saudi Arabia.
– Opening of markets in Libya and Syria and untapped potential in Iraq.
– Global liberalisation of financial services as part of WTO membership.
MORO 2006 - London June 13th 15
Development drivers
Regulation Investment Takaful Compulsory insurance Bancassurance
MORO 2006 - London June 13th 16
Takaful products contributed & are expected to continue to contribute to insurance business growth.– Innovative customer needs driven products– Overcome social and religious insurance demand
inhibitors– Interest for Takaful is growing among customers.
Number of Takafuls companies is growing fast. Number of Takaful windows is growing as well
Takaful
MORO 2006 - London June 13th 17
Development drivers
Regulation Investment Takaful Compulsory insurance Bancassurance
MORO 2006 - London June 13th 18
In UAE, demand for insurance increased exponentially due to the introduction of two compulsory lines : – Third party motor liability – Medical protection.
Saudi Health Insurance Market expected to grow by four times in a very short term reaching USD 1 billion.
Compulsory insurance
MORO 2006 - London June 13th 19
Algeria passed a law in August 2003, following the earthquake in May of that year, making insurance against natural hazards obligatory
Compulsory insurance
MORO 2006 - London June 13th 20
Development drivers
Regulation Investment Takaful Compulsory insurance Bancassurance
MORO 2006 - London June 13th 21
In Saudi Arabia, – SAMA allowed local banks collaborate with
insurance companies in the family takaful field through Bancassurance.
– Bancassurance has improved production levels and is expected to account for 30% of market by 2010.
Syria, which has an important banking potential, encouraged bancassurance development by the opening its financial, banking and insurance sectors.
Bancassurance
MORO 2006 - London June 13th 23
805631551
3 442
2 4052 663
0
500
1000
1500
2000
2500
3000
3500
4000
1999 2001 2003
MUSD
LIFE NON LIFE
Premium income in GCC
MORO 2006 - London June 13th 24
509459450
1 755
1 5151 464
0
200
400
600
800
1000
1200
1400
1600
1800
2000
1999 2001 2003
MUSD
LIFE NON LIFE
Premium income in N-Africa
MORO 2006 - London June 13th 25
LIFE NON-LIFE
99/01 15% 11%01/03 28% 29%
99/01 2% -3%01/03 11% 20%
GCC
N-Africa
Growth rates
MORO 2006 - London June 13th 26
0 200 400 600 800 1000 1200 1400 1600
U.A.E
SAUDI ARABIA
MOROCCO
EGYPT
LEBANON
TUNISIA
ALGERIA
KUWAIT
QATAR
OMAN
JORDAN
BAHRAIN
LIBYA
SYRIA
SUDAN
YEMEN
PALESTINE
MUSD
2004 MENA Premium income
MORO 2006 - London June 13th 27
0 2 000 4 000 6 000 8 000 10 000
U.A.E
SAUDI ARABIA
MOROCCO
TUNISIA
ALGERIA
EGYPT
KUWAIT
LEBANON
QATAR
JORDAN
BAHRAIN
LIBYA
SUDAN
OMAN
SYRIA
YEMEN
PALESTINE
MUSD
2010 premium income (e)
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