Dubai PR Network, Online Press Release from Dubai and Middle East
 
Banking & Insurance(Banking & Investments)
Filter PR by
  
MENA insurance markets – shifting landscape amidst four-pronged disruptive events
 
  • While the UAE insurance market was supported by the roll-out of the mandatory Dubai health scheme (premium growth of 19% in 2016), recent premium growth in other MENA insurance markets has been subdued
  • Clear signs of industry consolidation are evident with a number of KSA insurers making merger announcements
  • Four-pronged disruption affecting MENA insurance markets: increasing customer expectations, regulatory changes, technological advancements, and economic pressures

Dubai, 04 April 2017:  According to EY’s latest report - ‘Insurance Opportunities in the Middle East’, insurance markets in the Middle East have remained resilient despite economic headwinds and lower oil prices. Two of the region’s largest markets, the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA), have hit the US$10b gross written premiums mark — underlining the region’s increasing significance to the global insurance markets.

However, profitability remains a key concern for MENA insurers. As investment income has not contributed significantly to shareholder returns, insurers have focused on technical profitability and cost reduction. While cost -cutting measures may bring short-term relief, sustained results can only be achieved by a well-executed operational transformation strategy, backed by robust technology and a customer-centric approach.

Sanjay Jain, EY MENA Insurance Leader, says:
“The MENA insurance markets are going through a four-pronged disruption, which is originating from increasing customer expectations, regulatory changes, technological advancements, and economic pressures. Whilst we see pockets of growth, how individual insurers respond to these emerging challenges, will define the future leaders of the business.”

Seven insurance trends are expected to drive the MENA insurance markets in the near future, including: Value Added Tax (VAT), IFRS, Robotics, Analytics, Digital, Technology, and Cyber. 
    
Shaun Crawford, EY Global Insurance Leader, says:
“Emerging markets remain a very exciting story for the insurance sector. In the recently launched EY report, ‘Emerging Markets Matter’, 22 emerging markets were identified as the main drivers of premium growth over the next five years. The UAE and KSA secured 10th and 11th place from 22 countries assessed in terms of opportunity for ‘significant premium growth’ and 6th and 7th place respectively in terms of ‘least amount of risk’.”

Customer centricity is expected to drive innovation in the MENA insurance markets and insurers need to take notice and explore opportunities to deploy technology and automation. Another priority is to embed analytical tools for precise decision-making, not only on the front end with customer analytics but also to support profitability, through claims and fraud analytics. 

Rohan Sachdev, EY Global Insurance Emerging Markets Leader, says: 
“Having witnessed the trends from a number of emerging markets over the recent years, we see Middle East markets going through a similar maturity curve, in terms of improving insurance penetration and maturing regulations, which augurs very well for the industry in the long term.”

While much progress has been made, a key outcome of the current competitive environment as a result of increased regulatory requirements, is likely to be increased pressure on small insurers leading to consolidation opportunities, which is already evident in the KSA market. 

Gordon Bennie, EY MENA Financial Services Managing Partner, says:
“Consolidation could ultimately be positive for the market as a whole, as a small number of strong players would result in a more robust market. Economic activity in the region is also expected to revive, though at a slower rate than in the last decade”. 

Posted by : Dubai PR Network Editorial Team
Viewed 6789 times
PR Category : Banking & Investments
Posted on : Tuesday, April 4, 2017  2:51:00 PM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of DubaiPRNetwork.com.
Previous Story : United Arab Bank celeberates the graduation of its UAE Natio...
Next Story : Moody's affirms Mashreq Capital's “Very Good” Investment Man...
Email this article Print this article

Share this article with your friends and followers
NewsVine
Back to Section Home

Related Stories



 
 
Most Viewed Press Release posted in the last 7 days
LG DUALCOOL Air Conditioner Builds a Tower of Chocolate [12804-Views]
Dune London: The Autumn/Winter17 campaign [10278-Views]
Max Mara: Iconic Coats - Manuela & Teddy. [9327-Views]
Contour, Highlight and Bronze your Body with Ease with Madame LA LA [7991-Views]
Vintage is the rage for new Chronofighter range [7942-Views]
SAINT HONORE Charisma “Twist” for elegant lady [7546-Views]
Marina Rinaldi : Ashley Graham continues her role as the face of the brand for the Fall/W... [7271-Views]
LG Robots to Connect People for A Better Tomorrow [7046-Views]
Ferrari Portofino: the Italian Grand Tourer par excellence [6637-Views]
CITIZEN opens refurbished boutique at Sharjah City Centre [6631-Views]
Exhilarating new Roger Dubuis pop-up boutique in the US [6289-Views]
Panasonic announces robust plans for Middle East under new leadership [6130-Views]
Mango Fall/Winter17 - Denim Special [5929-Views]
Michael Kors Collection Spring 2018 Fashion Show [5911-Views]
Weekend Max Mara : The Pasticcino Bag - Fall/Winter 2017 [5813-Views]
Huawei CBG supports the Middle East Innovation Agenda by bringing cutting-edge innovative ... [5807-Views]
TAG Heuer's Globetrotter Exhibition Opens in Dubai Mall on September 15, As Part of an Amb... [5649-Views]
Dubai Culture Takes ‘Dubai Next' to London Design Festival [5630-Views]
Ulysse Nardin Presents Classico Zheng He [5466-Views]
Kate Upton, Ashley Graham, Andreea Diaconu, Skai Jackson and more in Michael Kors to a Par... [5429-Views]
'COÉGA'S Got You Covered' in New AW17 SPF50 Family Swimwear Collection [5240-Views]
Malabar Gold & Diamonds recognized as the ‘Superbrand' 5th time in a row by Superbrands Co... [5185-Views]
New Balance Introduces the 574 Sport in Celebration of the Dubai Mall Store Opening [5161-Views]
Vacheron Constantin Pays Tribute to the Middle East with Exclusive Overseas Timepieces [5118-Views]
The Longines Avigation BigEye: Aesthetics and tradition in a pilot's watch [5094-Views]
 
RSS Facebook Twitter LinkedDin
 
Top Sections
 
Top Stories