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 7253 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
SOUQ.com to Launch Half a Million Deals for White Friday 2017 [20167-Views]
Give the Gift of Beautiful Hair with SHOW Beauty [16671-Views]
PLAY FOR PEACE, Spread Good Vibes this Christmas [16622-Views]
Roja Parfums ELYSIUM - Now available at Paris Gallery in UAE [16244-Views]
Runway Dubai Wrapped up an inspiring star studded event with iconic designer, Walid Atalla... [14695-Views]
FOREO: Futuristic Gifting Ideas [13420-Views]
Six pairs of Emirati siblings marched together at Skyline's 27th Graduation Ceremony [13396-Views]
Infinix Launches Zero 5 in Dubai in Partnership with Souq.com [10943-Views]
Santa Claus is coming to town on a festive Graham Chronofighter Vintage Nose Art Ltd [10303-Views]
Stylish automatics from CITIZEN made for the special occasion [9955-Views]
Alpha Assured Assistance (AAA) Loyalty Program to ramp up loyalty landscape in the UAE [8186-Views]
Tub Of Butter Celebrates First Birthday with 1 Dhs Coffee [8156-Views]
SOUQ ramps up operations ahead of White Friday Sale [8150-Views]
SAINT HONORE Celebrates the UAE's 46th National Day with a Limited Edition Haussman Quartz [7845-Views]
Experience the best of Korean beauty with Missha [7710-Views]
Make Room for Play and Celebration With IKEA During Dubai Design Week [7454-Views]
Dubai RAK Diabetes Center launches Dhs 1 Diabetes screening for residents [6862-Views]
50 Years of Puma Suede: PUMA Brings It for the Culture With the B-boy Pack [6399-Views]
Dubai Shines as Global Industry Descends on Vod Dubai International Jewellery Show [5813-Views]
Godiva Arabia opens its 17th branch in the UAE [5606-Views]
Premium Beverages Maker Hielo Beverages India Forays into Dubai(UAE) [5594-Views]
H.H. Sheikh Hamdan bin Zayed Al Nahyan Tours the Barakah Nuclear Energy Plant [5228-Views]
Chattels & More returns to Downtown Design showcasing limited edition pieces while KARE ma... [5191-Views]
Dubai Sports Council Championship for Football Academies set for a “bigger and better” sea... [5142-Views]
Toyota goes Xtreme with Land Cruiser, FJ Cruiser and Fortuner [5142-Views]
 
RSS Facebook Twitter LinkedDin
 
Top Sections
 
Top Stories