Middle East & North Africa
Why is this an insurance growth
region?
MENA
Profile
 An insurance growth region
 Current figures and outlook

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2
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.

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3
Different economy features
Common cultural heritage, but :
 Various stages of economic development
 Different natural resources endowment
(especially oil)

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4
MENA Vs World

Population :
– 7.7% of the world’s population

Total GDP :
– Around USD 2 trillions
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5
MENA
Profile
 An insurance growth region
 Current figures and outlook

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6
Development drivers
Regulation
 Investment
 Takaful
 Compulsory insurance
 Bancassurance

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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)
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8
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
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9
Jordan & Libya

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.
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10
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
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Development drivers
Regulation
 Investment
 Takaful
 Compulsory insurance
 Bancassurance

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12
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).
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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.
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Development drivers
Regulation
 Investment
 Takaful
 Compulsory insurance
 Bancassurance

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15
Takaful

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
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Development drivers
Regulation
 Investment
 Takaful
 Compulsory insurance
 Bancassurance

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Compulsory insurance

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.
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Compulsory insurance

Algeria passed a law in August 2003,
following the earthquake in May of that
year, making insurance against natural
hazards obligatory
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Development drivers
Regulation
 Investment
 Takaful
 Compulsory insurance
 Bancassurance

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Bancassurance

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.
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MENA
Profile
 An insurance growth region
 Current figures and outlook

MORO 2006 - London June 13th
22
Premium income in GCC
MUSD
4000
LIFE
NON LIFE
3500
3000
3 442
2500
2000
2 663
2 405
1500
1000
500
551
631
805
0
1999
2001
MORO 2006 - London June 13th
2003
23
Premium income in N-Africa
MUSD
2000
LIFE
1800
NON LIFE
1600
1 755
1400
1 515
1200
1 464
1000
800
600
400
450
459
509
200
0
1999
2001
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2003
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Growth rates
LIFE
99/01
GCC
01/03
99/01
N-Africa
01/03
15%
28%
2%
11%
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NON-LIFE
11%
29%
-3%
20%
25
2004 MENA Premium income
MUSD
PALESTINE
YEMEN
SUDAN
SYRIA
LIBYA
BAHRAIN
JORDAN
OMAN
QATAR
KUWAIT
ALGERIA
TUNISIA
LEBANON
EGYPT
MOROCCO
SAUDI ARABIA
U.A.E
0
200
400
600
800
1000
MORO 2006 - London June 13th
1200
1400
1600
26
2010 premium income (e)
MUSD
PALESTINE
YEMEN
SYRIA
OMAN
SUDAN
LIBYA
BAHRAIN
JORDAN
QATAR
LEBANON
KUWAIT
EGYPT
ALGERIA
TUNISIA
MOROCCO
SAUDI ARABIA
U.A.E
0
2 000
4 000
6 000
MORO 2006 - London June 13th
8 000
10 000
27
Thank you
Ref : The ARAB BUSINESS MAGAZINE “ Al- Iktissad wal- Aamal” (March 2006).
The Annual ARIG Review of the Arab Insurance Market 2003.
The BMA Islamic Finance Review (issue 2 & 10).
The Insurance Review (issue 6).
L’Argus de l’Assurance (July 2005).