Policy | Dec 2010

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”We had to move this 700-tonne component more than 600 kilometres. Scores of risks, but Zurich made us feel confident we were well protected.”

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surViVal surViVal insTincTs: insTincTs: staying staying afloat afloat in in troubled troubled times times

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healThy healThy ouTlook?: ouTlook?: Medical Medical insurance insurance schemes schemes

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rising rising Tide: Tide: incidents incidents of of piracy piracy on on the the up up

November/December ll 2010 2010 November/December

Herbert Peters, Managing Director, Sasol-Huntsman, Moers, Germany

Volume Volume Volume07 07 07Issue Issue Issue06 06 06 November/December November/December November/December2010 2010 2010

www.policy.ae www.policy.ae www.policy.ae

The The Voice Voice of of Middle Middle easT easT insurance insurance Integrated insurance solutions for even the most specialized projects. We provided Sasol-Huntsman, one of the largest producers of maleic anhydride in Europe, with an integrated insurance and risk engineering solution to address the risks associated with moving a 700-tonne factory component across Germany. By ensuring the necessary precautions were taken and providing coverage for the entire journey, everyone was breathing easy. It’s an example of how Zurich HelpPoint delivers the help businesses need when it matters most. To learn more about this case, visit www.zurich.com/risks Brighter days ahead? Brighter Brighter days days ahead? ahead?

BrighTer days ahead? P.22 P.22

haVing haVing weaThered weaThered The The worsT worsT of of The The econoMic econoMic sTorM, sTorM, The The forecasT forecasT for for 2011 2011 is is ProMising ProMising

AAAMediaquestcorp Mediaquestcorp MediaquestcorpPublication Publication Publication

Zurich Insurance Company Limited (DIFC branch) is registered in Dubai, UAE. Registration number 0840. Registered Office: Dubai International Financial Centre, The Gate Building, East Wing, Level 6. Regulated by the Dubai Financial Services Authority. Telephone: +971 4 363 4444. Zurich Insurance Company Limited (Bahrain branch) is licenced by the Central Bank of Bahrain (CBB) and is registered in Kingdom of Bahrain under Commercial Registration No. 74082. Registered Office: 27th Floor Almoayyed Tower, Seef District, P.O. Box 11308, Kingdom of Bahrain. Telephone: +973 1756 3100. Not all products available in all jurisdictions. www.zurich.com

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18. 18. Takaful Takaful The Thenew new'Regulation' 'Regulation'

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28. 28. leBanon leBanon Industry Industrygrowth growthexpected expected

46. 46. iais iais conference conference Towards Towardsmacro-governance macro-governance

Registered Registered Registeredwith with withDubai Dubai DubaiMedia Media MediaCity City City

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Gulf Reinsurance Limited | P.O. Box 506766 | Dubai, UAE | t: +971 4 382 5700 | f: +971 4 382 5777 | www.gulfre.com Regulated by the DFSA

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issue 06_contents November/December 10

Takaful 18 It seems you are either for it or against it. Clyde and Co’s Peter Hodgins talks UAE Takaful Insurance Regulation

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Cover story 22 W ith what we hope is the worst of the recession behind us, we look ahead to 2011

Lebanon market report 28 2011 is set to be a promising year for the Beirut insurance sector, with economic growth forecast

Survival instincts 32 Michael Gertsch takes a tongue-in-cheek look at ways for insurers to stay afloat in troubled times

Healthy outlook? 34 More and more medical insurance

schemes are being made compulsory, but challenges need to be addressed

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Beyond predictions 38 T he end of one year always sparks predictions for the next: James Portelli offers his thoughts on the market

Sink or swim 42 Incidents of piracy around the waters of

the Gulf of Aden and Somalia are rising, and cargo underwriters are especially at risk

Towards macro-governance 46 We report from the 17th Annual Conference of the International Association of Insurance Supervisors

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features November-December 2010 I

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issue 06_contents November/December 10

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50 Editor’s note 06 It may be the last issue of 2010, but Policy is still first for insurance news and views from the region

Global Eye 08 Billionaire Warren Buffett and three firms he controls own 10.2 per cent of the voting rights of Munich Re

Appointments 16 Glen Doan is to manage Zurich Middle East’s risk engineering team in Bahrain and the UAE

London Eye 50 The 2011 Reinsurance Market Outlook report is out – and it’s looking promising

Regional News 10 The latest developments, entrants

Industry directory 54 Your guide to the region’s brokers,

and regulatory initiatives from around the Middle East

insurers and service providers, including TPAs and IT support

Bogus 62 Fraud, comical claims, random statistics and the lighter side of the news from the world of insurance

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Regulars November-December 2010 I

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welcome_editor’s letter

AFTER MORE THAN three years at the helm of Policy magazine it is time to bid you farewell. It has been quite a journey. The Middle East and North Africa region has certainly lived up to its billing as (arguably) the most dynamic of all emerging insurance markets and the pace of change has been remarkable. The Gulf, in particular, has witnessed stellar growth, driven by extensive petrodollar-fuelled infrastructural projects and an unmatched level of ambition personified by undertakings such as the Al Maktoum International Airport in Jebel Ali, the Khalifa Port in Abu Dhabi and the King Abdullah Economic City in Saudi Arabia. The ripple effects of the global economic slowdown may have taken the wind out of the sails of the regional insurance industry but there are signs that macroeconomic conditions are improving. The doomsayers will proclaim that the party is over and that local insurance companies face cut-throat competition in over-saturated lines of business and evaporated investment income. It is certainly true that marine cargo and engineering are not the cash cows they once were, while the days of guaranteed stock market and property returns are long gone. However, the fundamental growth drivers of the regional insurance industry remain intact and the long-term outlook is promising. The introduction of compulsory health insurance schemes in Abu Dhabi and Saudi Arabia has been a great success and continues to drive strong growth, particularly in the kingdom where health insurance now accounts for half of total gross market premiums. Bahrain and Qatar are expected to introduce similar schemes over the next two years. Life insurance also offers great potential. Improvements in financial market conditions are likely to trigger demand for investment-linked, mortgage and credit products. It is also expected that pension reforms that result in the restructuring of existing schemes and the reduced role of governments will spur demand for longterm savings products. The winds of regulatory reform and market liberalisation continue to drive the industry forward as global players continue to be drawn to the region, while more and more Arab insurers are spreading their wings and venturing beyond their national borders. The liberalisation of the Egyptian and Syrian markets has ushered in a wave of new players, while markets such as Libya are also attracting global attention. The Middle East insurance markets have never had a higher global profile, thanks to conferences such as the World Insurance Forum in Dubai (2008), the International Insurance Society seminar in Jordan (2009) and the International Association of Insurance Supervisors conference in Dubai this year. Policy magazine has enthusiastically supported these and dozens of other important events over the years, including the biannual General Arab Insurance Federation conference. As the editor of Policy, I am proud of the role the magazine has played in providing a window to the region and serving as the voice of Middle East insurance. From a personal perspective, it has been a pleasure being part of this industry and I am grateful for all the support I have received over the years. I would like to thank my great team, our contributors and all our loyal readers for making my job so enjoyable. I hope you will extend the same level of support to my successor. Goodbye and thanks for the memories. Hussain Hadi, Editor

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Editorial Editor Hussain Hadi Senior Sub Editor Elizabeth McGlynn Sub Editor Salil Kumar Studio Creative Director Aziz Kamel Art Director Janett Kheil Designer Samer Hamadeh Advertising Business Development Manager Pamela Bayram pamela@mediaquestcorp.com Tel: +971 4 446 1658 Business Developer Nazir Bazaz n.bazar@mediaquestcorp.com Tel: +971 4 3644643 Distribution, Circulation and Subscriptions Distribution and Subscription Director J.P. Nair jp@mediaquestcorp.com Marketing Manager Joumana Haddad joumana@mediaquestcorp.com MEDIAQUEST CORPORATION CO-CEO Alexandre Hawari CO-CEO Julien Hawari CFO Abdul Rahman Siddiqui Managing Director Ayman Haydar General Manager Simon O’Herlihy Printed by Rashid Printers & Stationers LLC, Ajman, UAE Published by MediaquestCorp FZ Dubai Media City Al Thuraya Tower 2, 24th Floor, UAE Tel: +971-4-391-0760 Fax: +971 4 390 8737 Printed at Rashid Printers & Stationers LLC, Ajman, UAE No part of this magazine may be reproduced, stored in a retrieval system or transmitted in any form except by permission. The publisher makes every effort to ensure contents are correct but cannot accept responsibility for errors or omissions. Unsolicited material is submitted to Policy entirely at the owner’s risk; the publisher accepts no responsibility for loss or damage. With regret, competitions and promotional offers, unless otherwise stated, are not available to readers outside the Middle East. Reproduction in whole or part of any photograph, text or illustration without written permission from the publisher is prohibited. Due care is taken to ensure that the content of Policy is fully accurate, but the publisher and printer cannot accept liability for errors and omissions. © Mediaquest Corp FZ 2010. ISSN 1990-8288

Member of BPA Worldwide

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Global

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Eye

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A snapshot of developments from across the globe

Germany

global

01| Buffett boosts Munich Re stake

02| Aon to shed jobs

Billionaire investor Warren Buffett and three firms he controls now collectively own 10.2 per cent of the voting rights of Munich Re and intend to acquire more, according to a Munich Re filing. The German reinsurer has also received notification from Buffett that he intends to acquire further voting rights. However, the filing said the investment was being made to make trading profits rather than implement strategic objectives. The additional shareholding is not intended to exert influence on the composition of the management or direction of Munich Re, nor significantly change its capital structure.

Broking giant Aon could shed between 1,500 and 1,800 jobs across its global business as part of plans to integrate Hewitt Associates. The roles are mostly non-client facing and will not effect service levels, Aon said. The plans of the potential losses are detailed in a regulatory filing in the US. The company estimates approximately US$325m in expenses as part of the restructuring plan, which is expected to continue through 2013, including US$180 million workforce reduction and real-estate realisation costs.

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Philippines

03| Megi limited to US$150m Catastrophe modelling firm AIR Worldwide estimates that insured losses to onshore properties in the Philippines from ‘super-typhoon’ Megi will likely be less than US$150m, although Eqecat estimates economic damage at US$300m to $600m. AIR said its “loss estimates reflect insured damage to property (residential, commercial, industrial), and contents. Crop losses are not included. While the storm was one of the strongest to hit the Philippines in years, the typhoon steered away from metro Manila, where the highest concentration of insured properties is located. Overall the penetration of insurance in the Philippines is estimated at only 15 per cent.”

India

04| TPA for state insurers India’s four government-owned general insurers are finalising plans for a joint venture with a common Third Party Administrator (TPA), with the aim of controlling overbilling by some hospitals. The insurers – National Insurance Company, New India Assurance, Oriental Insurance and United India Insurance – have received applications from 24 bidders for the joint venture TPA, which is expected to start operations by June 30, 2011. The General Insurance Public Sector Association, however, says that even as the quartet have their own TPA, private TPAs will not be barred from providing services.

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Global_eye

USA

05| Hurricane test centre opens The Institute for Business & Homes Safety has unveiled a US$40m research facility with a giant test chamber capable of pummelling at least two full-size houses with simulated wind and rain. This will help efforts to find improvements in building techniques and materials by testing construction durability. The launch of the facility involved a demonstration where 105 man-sized fans (generating wind speeds of 90 miles an hour – roughly the force of a category three hurricane) were used to blow down a two-storey, Midwestern-styled house in South Carolina. The Property Casualty Insurers Association of America hailed the centre’s opening as “a landmark occasion for property casualty insurers and the millions of American homes and businesses we protect.”

China

Hong Kong

06| Coverage linked to weight

07| AIA completes IPO

Life insurers in China could charge obese people, whose body mass indexes exceed 30 for men and 28.6 for women, up to 200 per cent more than normal premiums, as research shows they are more likely to get ill than those who are of normal weight, the Xinhua News Agency reports. At the moment, more than 1.2 billion Chinese rely on the government-run basic medical insurance system, where employers and employees jointly contribute to the insurance fund. Employers in Beijing pay 10 per cent of a worker’s monthly income, while each employee contributes two per cent of his income plus CNY3 (US$.44).

AIA, the Asian life insurance unit of AIG, has raised US$17.85bn in the largest IPO ever completed in Hong Kong. The deal values AIA at $30.5bn, which will make the company the world’s seventh biggest insurer by market capitalisation, with profits forecast to exceed US$2bn this year. The sale is a milestone in AIG’s efforts to repay the US$60bn-plus that the US insurer owes American taxpayers and thereby free itself from government ownership. A large part of the deal’s proceeds will go to the US authorities, which bailed out AIG at the height of the financial crisis in September 2008.

USA

08| Deepwater bill could hit US$6bn Fitch ratings has said the Deepwater Horizon oil rig explosion in the Gulf of Mexico could result in insured losses of as much as US$6bn. BP will cover the majority of expenses linked to the clean-up, but Chris Waterman, Fitch managing director, said the disaster could cost insurers between US$4bn and US$6bn. The total economic loss is US$35bn, he said. Swiss Re estimated insured losses in June to be US$3.5bn, while a report from Moody’s said insurers are now charging 50 per cent more for policies covering oil rigs, after the blast in April triggered the worst spill in US history. November-December 2010 I

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NEWS_REGIONAL

REGIONAL

news

Arabian Eye

Kuwait

First Takaful insurance co downgraded Kuwait-based First Takaful Insurance Co has had its financial strength ratings lowered to ‘BB+’ from ‘BBB-’ by Standard & Poor’s. “The rating actions reflect our assessment that First Takaful’s financial and business profile is weakening,” said S&P’s credit analyst Wolfgang Rief. “Specifically, we have observed that continually deteriorating underwriting and investment results have weakened capitalisation. Additionally, 10 I

First Takaful is, in our view, at risk of its revenues falling below a level that we would regard as consistent with its book of business,” he said. The ratings agency cited the extremely fierce competition in the Kuwaiti market, the large number of takaful participants, and reduced insurance opportunities. These developments became manifest in a decrease in gross premiums written of about 10 per cent for H1 2010,

following a 20 per cent drop in 2009. However, S&P views as positive that management is trying to change the company’s business mix and has actively reduced the size of its stilldominant motor business to 49 per cent as of June 2010, from 55 per cent in 2009. First Takaful’s net combined ratio for the first six months of 2010 was about 128 per cent. It was 113 per cent in 2009, mainly because of disappointing results

for motor. S&P is also concerned about the development of the administration expense ratio, which deteriorated to about 38 per cent for H1 2010 from 29 per cent in 2009. However, S&P considers First Takaful’s liquidity to be good and has given a stable outlook based on the expectation that the shareholders’ net income will return to at least break even over the next 12 months.

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NEWS_REGIONAL Kuwait

Boost for Kuwait Re as rating raised Standard & Poor’s has raised its rating on Kuwait Reinsurance Co. K.S.C (Kuwait Re) to ‘BBB+’ from ‘BBB’. The outlook is stable. “The upgrade reflects the company’s ongoing improvement in underwriting results; it has made an underwriting profit in the past three years, and is expected to do so again in 2010,” said S&P’s credit analyst Kevin Willis. “This reflects Kuwait Re’s increased focus on technical underwriting, which is likely to

lead to returns consistent with a higher rating in the future. In addition, it provides evidence of the strength of the company’s competitive position and effectiveness of its enterprise risk management application.” The ratings reflect Kuwait Re’s strong capitalisation – in particular, its extremely strong capital adequacy, its strong investments and liquidity, and its good track record of underwriting performance in the past few years. Offset-

ting these strengths are the small absolute size of the company, which limits its competitive position, and the execution risks it has generated by expanding outside its core markets. Much of Kuwait Re’s business consists of proportional treaties, which offer less volatility than non-proportional reinsurance, but also lower profit margins. As such, S&P expects the company will deliver consistent, albeit modest, underwriting

profits in the medium term. It expects the combined ratio for 2010 will be better than 100 per cent. In addition, S&P expects Kuwait Re’s developing businesses outside the Middle East will also produce underwriting profits in the medium term, although it acknowledges that this business has less of a track record with the company and may, therefore, display greater volatility.

Kuwait

Egypt

KIPCO sells stake in GIC

Misr’s ‘under review with negative implications’ removed

Kuwait Projects Company (Kipco) has sold a 39.2 per cent stake in Kuwait-based Gulf Insurance Company (GIC) to Fairfax Financial Holdings for US$208.6m. Kipco said the deal will reduce its share in GIC to around 43 per cent and raise the Fairfax stake to approximately 41 per cent. Fairfax is a leading reinsurer in Canada and among the top 20 reinsurers worldwide. The company has been buying stakes in insurance firms worldwide and already has a stake of 20 per cent in Jordan-based Arab Orient Insurance Company, where Kipco also has a stake of 55 per cent.

A.M. Best Europe has removed Misr Insurance Company (Misr) from ‘under review with negative implications’ and affirmed the financial strength rating (FSR) of ‘B++’ (Good). Concurrently, A.M. Best has downgraded the issuer credit rating (ICR) to ‘bbb’ from ‘bbb+’. The outlook assigned to both ratings is negative. Subsequently, A.M. Best has withdrawn the ratings of Misr, assigning an NR-4 (Company Request) to the FSR and an ‘nr’ to the ICR. AM Best cited the limited information available at this stage and uncertainty

regarding the prospective capital position and operating performance (particularly dictated by compulsory motor) of Misr, which is likely to remain under pressure. Currently, Misr (and related group insurance entities) are undergoing a significant restructure, following the regulatory requirement of Egyptian Insurance Law, which obliges companies to separate the life and non-life portfolio effective from July 1, 2010. An extension has been granted by the regulator to separate entities by January next year.

Jordan

‘BBB’ financial strength rating for MEICO A.M. Best has assigned a financial strength rating of B++ (Good) and an issuer credit rating (ICR) of ‘bbb’ to Middle East Insurance Company (MEICO), referring to MEICO’s good business position in Jordan, technical profitability and declined but strong riskadjusted capitalisation. MEICO is the fourth-largest insurance firm in Jordan with gross written premiums (GWP) 12 I

of JOD23m ($32.5m) in 2009 (up six per cent year-on-year). Nonlife premiums, which account for 90 per cent of the company’s premium production, grew by five per cent due to the company’s strategy of discouraging the writing of motor third-party liability business. Life, medical expenses and personal accident business grew by more than 20 per cent,

reflecting the company’s success in attracting clients in its chosen segments. A.M. Best believes GWP will grow by approximately 10 to12 per cent in 2010. During the year, underwriting profits declined as non-life business was impacted by one-off events, and life profitability declined due to the worsening investment performance. The combined ratio increased to

93 per cent, which is the highest level for the company over the past four years. A.M Best expects the combined ratio to improve in 2010, while life profitability and investment performance will continue to be impacted by the equity prices and will therefore be at similar levels as 2009. Pre-tax profits will be in the range of JOD1.5m to JOD1.8m (US$2.1m to US$2.5m).

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Tunisia

uae

Best Re on solid ground

oic event

A.M. Best has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of ‘a-’ of Best Re (Tunisia). The outlook for both ratings is stable and reflect the company’s significant importance to its ultimate parent, Salama Islamic Arab Insurance Company (UAE). AM Best refers to Best Re’s “solid business position, strong financial performance, excellent risk-adjusted capitalisation upon receipt of an anticipated US$50m capital injection planned for the fourth quarter of 2010, as well as the benefits of operating in a more regulated

environment as the company is planning to relocate its operations to Labuan, Malaysia”. Gross written premiums are likely to increase at a rate of 18 to 20 per cent in 2010, which is similar to growth in the prior period. Prospectively, the company is seeking to continue expansion of business in its traditional markets of the Far East, Middle East, GCC and Northern Africa, as well as taking advantage of the potential growth in life products in these territories. A.M. Best believes Best Re will post strong overall earnings with pre-tax profits of

US$10m to US$11m in 2010 (2009: US$8.7m and H1 2010: US$5.6m). It also expects overall earnings to remain heavily influenced by consistently high technical results, and its combined ratio is anticipated to remain stable at 91 per cent. An offsetting factor is the company’s rapid level of growth, which could place a strain on capitalisation in the future. In the medium term, Best Re’s capitalisation is expected to remain stable, as its projected future earnings will be able to sustain the planned level of dividend payments.

Oman Insurance Company PSC has launched a product in Dubai for people who jointly own property. Through the Jointly Owned Property Laws and Real Estate Regulatory Authority, it is set to introduce mechanisms to support the ever-increasing sca le a nd complex it y of the projects currently under development or completed in the emirate. T he pr o duc t b a l a nc e s the commercial interests of developers with the interest of residents and propert y owners.

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NEWS_REGIONAL UAE

Orient partners with ALC Health ALC Health, a UK-based health insurance provider, has partnered with Dubaibased Orient Insurance (a member of the Al-Futtaim group) to underwrite its worldwide health plan for companies and residents in the UAE. Under the deal, ALC’s health products will focus on the expatriate community, which accounts for about 80 per cent of the population in the UAE. This follows similar deals between local insurers and global health players such as the tie-up between Abu Dhabi National Insurance Company and Vanbreda International, as well the partnership between Dubai insurance Company and William Russell. Qatar

Kane to establish insurance management company

Delighted: Shaun Brook

Kane, a provider of specialist risk and insurance management services, has received authorisation from the Qatar Financial Centre Regulatory Authority to establish an insurance management company at Qatar Financial Company. The new company, Kane LLC, will be headed up by Shaun Brook, practice leader, insurance management, Kane. The company will provide a range of services, including captive management, risk management and healthcare advisory services. Brook said: “We are delighted to be the first

captive manager to be licenced in the QFC. Qatar has made a significant commitment to becoming a global centre of excellence for captive insurance and has established a wellstructured regulatory regime that is robust, flexible and conducive to captive growth. Captives are seen as becoming a central component in Qatar’s financial make-up and Kane is delighted to be able to play a prominent role in facilitating this.” This follows the establishment of Kane Insurance Management WLL in Bahrain in November 2008 and Kane Ltd in the Dubai International Financial Centre in April 2009.

Lebanon

Zurich acquires Compagnie Libanaise D’Assurances

Milestone: Saad Mered

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Zurich Insurance Company has signed an agreement to acquire 99.98 per cent of Compagnie Libanaise D’Assurances SAL – a privately owned Lebanese insurer with branch operations in the UAE, Kuwait and Oman. Subject to regulatory approval, the transaction is expected to close at the end of 2010. Established in 1951 and headquartered in Beirut, Compagnie Libanaise D’Assurances today offers general insurance solutions to retail and commercial customers in the UAE, Kuwait, Oman and Lebanon, and also offers individual and group life insurance solutions to customers in Lebanon.

At the end of 2009 Compagnie Libanaise D’Assurances had gross written premiums totalling US$49.1m and net income after tax of US$5.1m. Saad Mered, Zurich Middle East CEO, said: “The acquisition marks a key milestone for us as we accelerate the expansion of our operations in the Middle East. It will give us access to personal and commercial customer segments in four important markets, and complements our existing general insurance presence in Bahrain and the DIFC through which we are already delivering tailor-made insurance solutions to large corporate customers.”

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Protecting ProsperityTM

P.O. Box 843, BNH Tower, Seef Business District, Kingdom of Bahrain, Tel: +973 17 587 300, Fax: +973 17 583 099, www.bnhgroup.com


Appointments_market moves

APPOINTMENTS Zurich strengthens corporate team Saad Mered, CEO of Zurich Middle East, confirmed a number of appointments on the eve of Zurich Global Corporate division’s first year in the Middle East. Glenn Doan has been appointed to manage the risk engineering team and will be based in Bahrain and the UAE. Glenn joins from Zurich Financial Services in Australia and brings extensive international experience in property and casualty risk evaluation. Hassan Kaissi has been appointed as head of customer

Ace appoints Middle East MD Ace European Group has appointed Steve Dixon as managing director, ACE Middle East and North Africa. Dixon succeeds Giles Ward, who led Ace MENA since 2006, and is now appointed to the position of chief executive officer for Ace Australia and New Zealand. Dixon has worked with the firm since its acquisition of

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CIGNA in 1999, at which time he was responsible for the UK Commercial P&C operations. In 2001 he assumed the position of casualty manager for continental Europe and emerging markets. In April 2006 he moved to Tokyo as regional vice president and director of Ace Far East responsible for the P&C and personal lines businesses.

and distribution management and will lead Zurich’s relationship and business development efforts in the region. Hassan brings extensive regional experience from working within the insurance sector in Saudi and Lebanon. Daniel Morrison joins as underwriting manager for marine. Morrison transfers from Zurich’s marine operations in Australia and comes with more t ha n 12 years’ experience in the industry. Marline Nehme joins as senior casualty underwriter.

promotion for Jayarajan

Nehme will be delivering tailored casualty programmes across all major lines including public and product liability, recall and employer’s liability, to brokers and insurance partners in the region. Tejal Bartlett joins as underwriting manager for onshore energy property. As part of the Zurich Global Energy team, she will be providing onshore property insurance programmes for companies in the oil and gas, petrochemical, natural resources, mining and power generation industries.

UAE-based Al Fujairah National Insurance has promoted K.K. Jayarajan as deputy general manager (technical and reinsurance). Jayarajan has been with the company since 2003 and boasts 32 years’ insurance industry experience. He began his career with United India Insurance Company and has had various roles with insurance companies in the UAE and Qatar.

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Arabian Eye

focus_takaful

CLEAR MESSAGE: The UAE Insurance Authority intends to set the standard for takaful

No more debate on Islamic windows The ongoing debate regarding Islamic windows in takaful has been conclusively resolved in the UAE. The Regulation is clear that “takaful insurance activities shall be exclusively exercised by takaful insurance companies”. There is, therefore, no longer any scope for conventional insurers to offer takaful products via an Islamic window in the same way that Islamic banking products are offered by conventional banks. I characterise this as a positive, on the basis that it resolves a long-standing issue of uncertainty. It does have the negative effect of discouraging new participants into the takaful sector, especially as it is not possible for new players to obtain a licence to enter the UAE market due to the moratorium currently in place. However, for a relatively young and immature market this is advantageous for those players that have committed the resources to establish takaful operations. Whether the prohibition will extend to 20 I

“The need to distinguish takaful products from their conventional counterpart will be increasingly stark and those operators with the foresight and innovation to do so will prosper” retakaful remains to be seen. Logically, in a sector requiring additional capacity, and where the risk of confusing the insured is limited, there would seem to be no basis for doing so.

C o nt i n u i n g d e v e l o p m e nt o f insurance regulation The Regulation is part of a broader reform of the insurance industry by the UAE Insurance Authority. These reforms, which started with the

enactment of UAE Federal Law 6 of 2007, concerning the formation of the Insurance Commission and creation of the UAE Insurance Authority, have seen the introduction of regulations in respect of minimum capital, accounting standards, money laundering and a code of conduct for insurers. Regulation is expected imminently in relation to insurance agents, third-party administrators, insurance and reinsurance brokers and loss adjusters. Taken in conjunction with these developments, the Regulation is a demonstration of the commitment of the Insurance Authority to drive this sector of the economy forward. The regulation will, as many commentators have observed, create challenges for the UAE takaful industry. It does, for example, raise a question as to whether there are sufficient numbers of qualified and experienced shari’a scholars in order to populate both the Supreme Committee for Fatwa and Shari’a Supervision and shari’a supervisory boards. However, at worst, this is a short-term issue and will likely encourage younger scholars into the insurance field and benefit the industry in the longer term. The Regulation does also have the potential to increase the costs of a takaful operator. In the short term, takaful operators are likely to have to modify their structures so as to ensure their operations are in compliance with the fatwa issued by the Supreme Committee for Fatwa and Shari’a Supervision. Likewise, there will be additional costs in ensuring the takaful operators’ corporate governance structure properly reflects the requirements of the Regulation. But from an optimist’s viewpoint, the regulation is good for the industry. It will assist in building confidence in the takaful concept and provide a more certain and level playing field. The message from the UAE Insurance Authority is clear: it intends to set the standard regionally (if not globally) for takaful. The ball is now squarely in the takaful operators’ court – seize the opportunity and develop an offering that is competitive with, but distinct from, conventional insurance.

CONTRIBUTOR: Peter Hodgins is a partner in the Corporate Insurance team at Clyde & Co’s Dubai Office, where he specialises in takaful and retakaful

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Moving forward: Qatarlyst CEO James Sutherland (left) and board member Khaled Al Mughesib (right) announce the acquisition of RI3K

Qatarlyst takes step forward with acquisition of RI3K Qatar Insurance Services LLC, owner of Qatarlyst S.P.C., the technology-based insurance and reinsurance trade fulfilment system based in Doha, recently acquired RI3K, the Londonbased pioneer and innovator of technology that supports paperless transactions for the commercial insurance and reinsurance industry. This is a transformational deal for Qatarlyst, expanding its international reach, providing a

quantum leap in the number of members served to more than 330 and doubling its headcount to more than 45. RI3K provides a global ‘Platform as a Service’ (PaaS) that replaces the paper-based processes that support the transactions of large commercial insurance and facultative and treaty reinsurance. The service has been developed to support the way buyers, brokers and carriers do busi-

ness. It allows them to collaborate, create contracts, distribute risk and transact in a way that is faster, more accurate, more efficient and cheaper than paperand email-based processes. RI3K facilitates transactions for more than 4,200 users from more than 290 of the largest and most successful blue chip insurance companies and intermediaries, such as Aon, Swiss Re and Zurich. Abdulrahman Al Shaibi, chairman of Qatarlyst and managing director of the QFC Authority, said: “The acquisition of RI3K is a clear sign of our longterm commitment to develop the Qatarlyst offering. We firmly believe the future success of our business is dependent on our ability to offer far into the future a financially and technically secure e-platform solution on which our clients can transact quickly and efficiently. “Our continual investment in and development of our platform supports the wider strategy of the QFC Authority to develop a regional hub for reinsurance and captive insurance and one that is efficiently connected to other key global centres.”

Leatherby takes helm at Aetna me AND AFRICA Aetna, the health care benefits company, has appointed Stuart Leatherby as managing director, Middle East and Africa, effective September 1, 2010. In this role, Leatherby will manage the company’s expatriate business in the Middle East and Africa region, which operates under the Aetna Global Benefits (AGB)

name. Based in Dubai, Leatherby replaces Mark Jardin, who returns to the US. Leatherby most recently served as head of AGB international market development, where he was responsible for directing market expansion activities across new and existing segments and geographies.

Since joining the organisation in 2000, he has completed numerous assignments with diverse responsibility across areas including product development, underwriting and portfolio management, technical claims, workflow management, information technology and compliance.

FORTHCOMING EVENTS SEVENTH ANNUAL MIDDLE EAST INSURANCE FORUM Date: February 7 and 8, 2011 Venue: Ritz Carlton, Bahrain Held in partnership with the Central Bank of Bahrain, the seventh annual Middle East Insurance Forum will discuss “translating potential into growth and charting the next phase of development for the regional insurance industry”. Key areas of focus include: Regulation Focus on life, motor and health lines Mergers and acquisitions Corporate governance Investments www.megaevents.net/insurance

Fifth Annual MultaQa Qatar Date: March 14 and 15, 2011 Venue: Sharq Village & Spa, Qatar Hosted by the Qatar Financial Centre Authority, the fifth annual MultaQa Qatar conference will offer a platform for senior (re)insurance and risk management executives to discuss regional and global industry issues of strategic importance. Key speakers include: Charles Cantlay, chairman, Aon Benfield Re Graham White, deputy chairman, Lloyd’s of London Yassir Albaharna, chief executive officer, Arig Osama Abdeen, CEO, Abu Dhabi National Takaful Co. Dermot Dick, chief executive officer, Q Re www.globalreinsurance.com /digital/qatar2011

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focus_takaful

takaful

This section explores the latest trends in the rapidly burgeoning global takaful (shari’a-compliant insurance) market, which is estimated to eventually grow to between US$7bn (Swiss Re) and US$15bn (Takaful Re) by 2015

setting the standard clyde & co’s Peter Hodgins provides an optimist’s view of the implications of the new UAE takaful regulations

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here has been precious little debate surrounding the new UAE Takaful Insurance Regulation (the “Regulation”). The majority of discussions I have had with journalists and members of the industry have tended to focus either upon the fact that the Regulation largely reflects AAOIFI standards for Islamic institutions – and is therefore not terribly dramatic – or dwells upon the challenges it creates for the takaful industry in the UAE. There is merit in both view points. However, being forever an optimist, I believe there is much, much more in the Regulation and a number of positives can be drawn from it. The Regulation, which came into force in July 2010, provides, for the first time, detailed rules for the takaful sector in the UAE distinct from the insurance laws and regulations. This statement of intent from the UAE Insurance Authority recognises the distinctions between conventional insurance and takaful, and should be applauded as an attempt to create a level and transparent playing field for all takaful operators. The positives that can be taken from the Regulation include:

Levelling the playing field Potentially the most important aspect of the Regulation is the creation of the Supreme Committee for Fatwa and Shari’a Supervision. This committee is essentially a national shari’a board for the UAE takaful industry and is intended to work with the Insurance Authority. The committee is empowered 18 I

to issue fatwas binding upon the takaful operators. It is also mandated to collect and coordinate the fatwas of the takaful operators’ individual shari’a supervisory boards. This is a measure that should go a long way to ensuring consistency of shari’a interpretation in the UAE and alleviating the scope for shari’a opinion shopping. The publication of such fatwas will hopefully provide a body of jurisprudence for the UAE and set the standards for the wider Middle Eastern takaful industry. The existence of a national shari’a board may also assist in improving insurance penetration in the UAE. The very existence of Supreme Committee for Fatwa and Shari’a Supervision reinforces the message that insurance can be undertaken in a halal manner. It is hoped the fatwas issued will also be publicised further, developing understanding of insurance among the Muslim population.

Clear shari’a corporate governance requirements The regulation enshrines in law the requirements for each takaful operator to establish its own shari’a supervisory board. Every UAE takaful operator is required to appoint three appropriately qualified and experienced members. In addition, every UAE takaful operator is required to appoint a shari’a supervisor (the distinction between the shari’a supervisory board and shari’a supervisor being akin to that of external and internal audit).

The key is to ensure that not only is the takaful operator subject to scrutiny by an independent shari’a advisory board, but also that there is a mechanism within the operator ensuring that the rulings of that board are implemented in practice. The naysayers will argue, no doubt,

“Every UAE takaful operator is required to appoint three appropriately qualified and experienced members”

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that the corporate governance aspects of the regulations add little to the AAOIFI standards that are adopted by most takaful operators. The regulations do, however, have a significant advantage over the AAOIFI standards in that they give the force of law to these requirements. They require the members of the shari’a supervisory board be approved by the Insurance Authority. They also enshrine in law the requirement that the board be granted unrestricted access to the operator’s records and to its management. This is backed by the ability of the shari’a supervisory board to report issues to the Supreme Committee for Fatwa and Shari’a Supervision for a determination binding upon the takaful operator.

Reduction of conflicts of interest The issue of conflicts is also directly tackled by the Regulation. Article 11 provides that no individual scholar shall be a member of more than two shari’a supervisory boards or a member of the Supreme Committee for Fatwa and Shari’a Supervision. In addition,

shari’a scholars are prohibited from holding shares or being a director or employee of a takaful operator. Again, the short-term difficulties caused by such requirements will inevitably be the focus for many commentators. Nevertheless, in the short term such restrictions will encourage new scholars into the insurance sector and will benefit the industry in the longer term.

A drive for policy development The Regulation does not purport to specify which model of takaful is to be used in the UAE beyond stating that risks and investments shall be conducted on the basis of a wakala/ mudaraba basis (presumably the Supreme Committee for Fatwa and Shari’a Supervision can be expected to provide further details about the practical operation of these models). The regulations do, however, specify that the subscription policy shall be independent of the takaful insurance policy. This will have a significant impact for many operators in the UAE as they have historically issued policies that are modified conventional insurance policies with a clause, a

“takaful wrapper”, describing the takaful model (wakala/mudaraba) used to manage the contributions. This creates both a challenge and opportunity for the takaful industry. The effect of the Regulation in requiring separate subscription policies and takaful insurance policies will be to make transparent the fact that the risk aspect of the product is substantially the same as for many western conventional insurance policies. This is not a criticism – it is an inevitable consequence of the desire to offer products that fulfil a recognised insurance need and is comparable to the early stages of Islamic banking products. The potential ramifications of this segregation are, however, significant. The Regulation will potentially herald the start of a new phase of development for the takaful industry in the UAE. The need to distinguish takaful products from their conventional counterpart will be increasingly stark and those operators with the foresight and innovation to do so will prosper. November-December 2010 I

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www.sunreinsurance.com


cover story_New Year resolutions

brighter days ahead? Having weathered the worst of the economic storm, the forecast for 2011 is promising

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Looking ahead As 2010 draws to a close with the dawn of a new decade, Policy offers a list of New Year resolutions for the Middle East and North African insurance industry

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he onset of the new year provides the ideal opportunity to reflect on the changes we want or need to make; be it the reforming of a bad habit or commitment to exploring something new. The Middle East and North African insurance industry heads into 2011 in good health, having weathered the worst of the economic storm, but faces a number of significant challenges. This year’s General Arab Insurance Federation (GAIF) conference produced a lengthy wish-list for the MENA insurance industry that ranged from calls for local insurers to cede more business to Arab reinsurers, to calls for distinct regulatory measures for the development of the takaful sector (as approached by Bahrain, Malaysia and now the UAE). At a fundamental level, key areas of concern for industry leaders include: regulation, skills shortages, lack of insurance awareness, fragmented markets and the need for getting back to basics.

“With MENA insurance expected to grow throughout the coming years, policymakers and regulators will have to address the challenges that lie ahead for the region to capture insurance’s full growth potential, including developing an insurance talent base, fostering the development of takaful, creating and improving public awareness about insurance and supporting the growth of a regional insurance market,” said Peter Vayanos, a partner at Booz & Company. The talent pool Resolution: Greater investment in training and recruitment, with a focus on attracting young, local talent. The growth of the sector is hampered by a shortage of skills – particularly product development, underwriting and actuarial skills. The absence of skills clearly affects the development of the sector, specifically in the areas of product innovation, risk

assessment and pricing. This situation is exacerbated by nationalisation requirements in some countries, which extend the time required to train and equip staff for key positions, and the availability of highly attractive positions in other areas of the financial services sector. The good news is that both the Gulf Insurance Institute and the more established Bahrain Institute of Banking & Finance have been proactive in introducing certification programmes and raising the profile of the insurance industry in the GCC. The Qatar Financial Centre (QFC) recently established a training institute offering accredited courses in several specialist areas, including banking, insurance and wealth management. An important role will be played by the Arab Insurance Institute in Syria, backed by GAIF, and expected to launch next year. However, more needs to be done. Vayanos said: “The region should strive to reach November-December 2010 I

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cover story_New Year resolutions AbdUl Khaliq R. Khalil Secretary General

Secretary General

General Arab Insurance Federation

Emirates Insurance Association

Abdel Khaliq Khalil is the face and voice of Arab insurance, representing 300 member companies across the MENA region. A veteran of the Iraqi insurance market, he became GAIF secretary general in 1998 and counts CEOs across the region as his personal friends. A true champion of the industry, Khalil continues to drive the evolution of the Arab markets and is currently spearheading the establishment of the Arab Insurance Institute in Syria.

Management consultants Booz & Co recently introduced a framework to assess the development of insurance in the Middle East, identify gaps and prescribe a set of policy recommendations. The framework was based on five key market “enablers”: a legal framework,regulatory bodies, the nature of competition, skills and training, and market-led initiatives. “The industry has made significant progress in addressing these issues, although some gaps still exist,” according to Roger Kastoun, a senior associate. Legal framework: Having a robust legal framework in place protects the rights of policyholders, regulates the activities of market participants and ensures the financial health of the sector. Regulatory bodies: Regulatory bodies are needed to oversee and supervise the sector, and ensure the enforcement of laws and regulations. Today, the region remains a patchwork of sophisticated and underdeveloped regulatory regimes, with Bahrain leading in terms of regulatory oversight. Nature of competition: Innovation, competitive pricing and the adoption of best practices are all natural outcomes when countries welcome free competi-

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Fareed Lutfi

One of the most recognisable figures in the industry, Fareed Lutfi’s wealth of experience stretches from his days at Arig, Alliance and AMAN to his current position as director of insurance services at Dubai Holding and founding board member of the DIFC. Lutfi is the secretary general of the Emirates Insurance Association as well as the GCC Commission for Insurance & Reinsurance Companies.

tion in their insurance market. “Today, most MENA countries have more than 20 insurers in operation and are keen on attracting foreign players. Some markets, however, are still dominated by stateowned or partially state-owned companies,” said Peter Vayanos, a partner at Booz & Co. Skills and training: An adequate knowledge base helps assess the risks to be insured, provides customers with the appropriate products and services, and ensures the availability and development of locally-based skills. Two recent initiatives have helped to address knowledge gaps: The Gulf Insurance Institute was established in Bahrain. In Doha, the Qatar Financial Centre established a training institute. Market-led initiatives: A vibrant insurance market should be able to stand on its own two feet, with little government intervention. Some markets have attempted to foster the availability of insurance market data and conduct consumer awareness campaigns to promote a better understanding of the market and help attract talent. Insurance market data, however, is largely unavailable. Similarly, limited coordination among policymakers at the

regional level is causing key issues to slip through the cracks. Booz & Company has identified four critical objectives that regulatory bodies should prioritise: building the talent base, improving public awareness and acceptance of insurance, fostering the development of takaful and coordinating efforts to harmonise insurance markets in the Arab world. The third issue relates to IBNRs and technical reserves. As in time of doubt, claims have a tendency to increase and in many cases accurate reporting fails. As a result many companies have had to increase their reserves as well as review underwriting criteria to ensure ability to pay, which in turn takes us to the final point. Regulations and standards, including ratings, have had a big impact. While increased pressure is positive, it had a negative affect on those companies unable to change direction or support additional load bearings. There are other factors including risk appetite, global rates and premiums in a softening market, as well as the very people running some of these organizations being unable to steer their ships through the choppy waters.

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a point where universities and private training centres offer multiple insurance degrees and certifications to accommodate the needs of students and professionals, and to target a wider range of individuals interested in pursuing insurance studies. This will guarantee an abundant supply of qualified personnel to meet the region’s growing demands of market participants and regulatory authorities.” Insurance companies should partner with industry associations and local educational institutions to reach out to young people through road shows, recruitment fairs, internships and graduate training programmes. Fareed Lutfi, secretary general of the Emirates Insurance Association (EIA), called on insurers to invest more in external and in-house training, and to think seriously about developing the next generation of Arab insurance leaders through long-term succession planning. Enhanced regulation Resolution: Continue to enhance insurance supervisory frameworks and enforcement mechanisms, while pushing for greater regulatory harmonisation across the region The winds of regulatory reform and liberalisation continue to sweep through the region but more progress is needed to bring supervisory standards in line with global best practice. The International Association of Insurance Supervisors (IAIS) held its annual conference in Dubai in October and confirmed that the global insurance industry will be facing greater scrutiny than ever before. At a regional level, there is wide variability in the maturity of the legal frameworks that govern local insurance markets. Bahrain has played a pioneering role, while Jordan and Oman boast relatively sophisticated regulatory regimes. Countries including Egypt, UAE and Saudi Arabia have initiated serious efforts to upgrade their regulatory frameworks, as evidenced by the enactment of new laws and sector guidance notes covering areas such as governance, market conduct and risk management. An overhaul of regulation is long overdue in countries such as Lebanon and Kuwait, but new laws are in the pipeline. The Arab Forum of Insurance Regulatory Commissions (AFIRC) will need to work closely with GAIF to push for regulatory harmonisation. One area in need of attention is the informal conditions under which brokers and agents operate, which are common across the region. The role of intermedi-

aries in developing markets is important because they not only increase the distribution of products, but also serve as a means of educating customers. With notable exceptions such as Bahrain, most Arab countries suffer from loose standards for brokers and agents in terms of

“AuTHORITIES CAN DERIVE LESSONS FROM INTERNATIONAL BEST PRACTICES”

qualifications, accreditations and licensing requirements. This in turn undermines the credibility of companies and individuals acting in this capacity because there is no way for customers to independently verify the quality of the agent or broker with whom they are dealing. Bancassurance, or the sale of insurance products through a bank, is a simi-

larly informal channel. Specific challenges include ensuring adequate training and incentive schemes for staff to sell insurance products, implementing systems to facilitate the processing of policies, and addressing regulatory issues such as which regulator should oversee bancassurance activities. Raising awareness Resolution: Raising Arab consumer awareness levels through public campaigns and a renewed focus on developing personal lines. While the emergence of compulsory insurance classes, namely motor and to some extent health, have helped drive demand for insurance products among Arab consumers, there is a chronic lack of awareness across the region when it comes to personal lines. Life insurance penetration is very limited, while the impact of products such as home contents insurance is negligible. The limited take-up of such products has been partly due to cultural factors, such as the reliance on the extended family network, and partly by structural factors, such as the November-December 2010 I

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cover story_New Year resolutions traditional provision of generous benefits by the state in the event of death or disability. However, insurers cannot afford to merely wait for governments to turn to the private sector, or to rely solely on the growth in asset-based financing (such as housing and auto loans) to push demand for related insurance products. Insurance penetration rates across the region will only rise with the proactive efforts of regulators, insurers and industry associations. So far, Arab countries have initiated a limited number of public insurance awareness campaigns. Notable exceptions include campaigns in Lebanon and Jordan, where insurance penetration levels are among the highest in the region. Other MENA countries’ public awareness forays have been limited to the publication of monthly bulletins and market surveys, but these do not reach all potential policyholders and more initiatives are needed to spur demand. “Authorities can derive lessons from international best practices and employ consumer surveys to measure the level of knowledge and acceptance of insurance. This will help reveal areas of weakness to be addressed in future outreach campaigns,” said Kastoun. “Conducting such surveys regularly will also enable regulatory authorities to measure the evolution of market awareness and adjust their communication strategies accordingly. Regulatory bodies should support public awareness campaigns that target specific audiences and are tailored to the needs of each jurisdiction. These campaigns should emphasise the policyholder’s recourse to lodge complaints with the insurance authority.” At a fundamental level, the onus lies on the insurance companies themselves to reach out to consumers with a focus on service levels and the benefits of their products, rather than on price alone. Back to basics The noble path to technical profitability continues to elude the majority of Arab insurers in the face of severe price competition and a lack of underwriting discipline. The cash-flow underwriting model that served regional insurance companies so well during the good years has been exposed in the wake of evaporated investment income. Two years after the onset of the global financial crisis and subsequent economic slowdown, even traditionally lucrative lines of business (including engineering and 26 I

marine cargo) are a long way from picking up steam again. Abdul Khaliq Khalil, secretary general of GAIF spoke of the need for healthy competition between insurers (built on robust underwriting principles and differentiation through service) rather than destructive price wars. Khalil also called for a greater focus on lines of insurance business that had not been sufficiently exploited such as life, medical, liability and agricultural insurance. Yassir Albaharna, CEO of Arig, added: “Underwriting discipline comes hand-inhand with the education of the insurance professionals themselves. The industry needs to return to basic principles of insurance and not rely on investment income.” On a related note, the industry would benefit from the emergence of more true risk carriers who display less opportunistic reinsurance buying behaviour. Too many insurers effectively function as glorified brokers fuelled by the availability of plentiful reinsurance capacity. Towards consolidation With more than 350 insurance companies across the MENA region collectively generating little more than US$20 billion in gross written premiums (less than the premium volume of Belgium), there is a general consensus that the industry is in need of consolidation. Highly fragmented markets such as Lebanon (with more than 50 insurers) and Jordan (30) are marked by a number of smaller companies engaged in what industry leaders such as Fady Shammas, CEO of Arabia Insurance Company, describe as “cut-throat” price competition.

“what we need to look at is not only quantity, but quality” The ownership and management structure of many companies (marked by a number of smaller, family-run businesses) is frequently cited as a major obstacle to M&A activity. Entrenched management teams, cultural factors and limited transparency make it difficult to get discussions off the ground. Furthermore, the widely divergent regulatory regimes in the region make cross-border acquisitions difficult.

However, there have been signs of activity, albeit driven by global insurance giants. Zurich recently announced the acquisition of Compagnie Libanaise D’Assurances (CLA), a privately-owned Lebanese insurance company founded in 1951 that has branches in the UAE, Kuwait and Oman. This follows the acquisition of Oman-based Al-Ahlia by RSA earlier this year, which represents not only a major shake-up of the Omani insurance market, but a relatively unique occurrence in the recent history of the Middle East insurance industry. The last major M&A transaction to be announced in the region was the merger of three of Egypt’s state-owned insurance companies: Egypt Re, Al Chark Insurance and Misr Insurance. Prior to stepping down from his role as chairman Arab Forum of Insurance Regulatory Commissions (AFIRC), Dr Bassel Hindawi said: “AFIRC is focusing intently on harmonisation because I believe the Arab insurance industry is quite fragmented with many small and local players. We need to see more PanArab players. “What we need to look at is not only quantity but quality. For example, if there is a new player coming into the market, what is the value added? Those coming in only to provide the traditional lines of business may find certain markets already sat rated with such providers. We need to encourage innovation in specialised lines of insurance and, in the process, push for more and more consolidation. Perhaps what is related is the capability of the insurers to retain risk. Insurance companies will not be able to grow and develop significantly if they do not become true risk underwriters with proper risk retention models.”

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market report_lebanon

Positive picture: The Lebanese economy has posted better-than-expected results so far this year

The feel-good factor the outlook for the Lebanese insurance sector is closely related to the prospects for overall economic growth, writes Abraham Matossian, president, Lebanese Insurance Association

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s the first three quarters of 2010 saw a better-than-predicted expansion in the Lebanese economy – the latest forecasts by the International Monetary Fund say real growth in gross domestic product (GDP) could exceed eight per cent for the overall year – insurance growth can be expected to follow this highly positive development. At this point, data on the development of insurance premiums in Lebanon in 2010 are still outstanding. However, expectations for development are strong and range from organic expansion in some business lines to much more rapid increases of premiums in high-growth sectors such as tourism-related economic activity, 28 I

which has been boosted by double-digit growth in visitor numbers for the first three quarters of the year. It has been confirmed that the market size for premiums is approaching US$1bn. This number includes a component of premiums income that has been booked, but which insurers will yet have to earn in coming years.

“Insurance leaders are well aware of the need to improve professionalism…”

However, there remain challenges for the Lebanese insurance sector. These include, as in previous years, the removal of obstacles to growth and improvement in professionalism. Communication with decision makers at the national level, ministries and governmental entities is taking place with quiet insistence. Obstacles to premiums development will be removed through steady and unrelenting efforts in creating the best and most beneficial conditions for insurance customers and insurance providers on legal, social and awareness terms. Insurance leaders are well aware of the need to improve the professionalism and skills of employees in the insurance industry. The tasks that need

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to be addressed range from improvement i n Eng l ish language skills to better knowledge of latest international underwriting standards, and thorough understanding of innovations and trends in global insurance markets. The Lebanese Insurance Association (ACAL) has been active in promoting the development of professionalism and skills in the sector and will continue supporting new training programmes and expansion of current ones for the benefit of member companies and their employees.

“…the market size for premiums is approaching US$1bn…” Also, many activities and initiatives being pursued by ACAL are already under way. ACAL has, for example, taken the initiative to develop means to help insurance buyers and sellers solve disagreements as quickly and smoothly as possible. To this effect, the association is establishing a committee that will handle all matters of arbitration that are brought to the attention of ACAL. The committee will work in close collaboration with the relevant government ministries and regulatory bodies. It will offer consumers great benefits by solving their problems or by giving proper advice on what they should do in case of an insurance disagreement. ACAL has been committed to improving the processes and co-ordination with stakeholders in the key areas of hospitalisation and motor covers. In negotiating industryrelevant terms with medical providers and reliable pricing of fees for hospital accommodation of the insured, ACAL has also taken the initiative of keeping control over factors that have tended to unreasonably boost costs for insurance providers and policy holders.

Appealing: Lebanon remains a magnet for tourists

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market report_lebanon

“…the Association is establishing a new committee for handling all matters of arbitration…” Similarly, the association is supporting better co-ordination between member firms and the government’s motor vehicle inspection unit, setting up processes that will reduce abuse of and violations against proper issuance of the mandatory third-party liability for motorists. ACAL, furthermore, is engaged in several projects aimed at enhancing Lebanon’s role in regional insurance by satisfying needs for communication and co-ordination. To this end, a Beirut branch office of the Cairobased General Arab Insurance Federation will take on important aspects of research and statistical work for the entire Arab insurance industry. 30 I

CONTRIBUTOR:

Abraham Matossian president, Lebanese Insurance Association (ACAL) – Beirut

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special report_survival game

survival instincts michael Gertsch takes a tongue-in-cheek look at ways for Middle East insurers to keep their head above water during difficult times. Everything will be alright if one follows a few easy steps… right?

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he insurance industry, specifically in our region, is facing challenging times. Rates are at an all-time low, growth is only slowly picking up again and underlying loss activity is increasing. With the absence of significant investment returns, which currently cannot be achieved, many companies will see their margins reducing to a point where shareholders start getting really worried about their returns. Why keep your money invested in an industry that generates less return than others? It’ll be survival of the fittest. Or the smartest. And if one follows a few basic principles it’s not really that difficult. Here are a few pointers to help you wade through these troubled waters. I mean, how hard can it be? 32 I

Focused communication

Keep growing – no matter what

Pick your audiences carefully and remember that people are happy when you tell them what they want to hear. Tell your board of directors that you will outgrow everyone else in the market. Even better still, tell them you’ll do it profitably. Then use any opportunity to publicly criticise your competitors for aggressive market behaviours and growth at any price. Say you are a technical underwriting company with a very selective risk appetite and then give your department heads ridiculous growth and profit targets. As one excludes the other they will focus on what is easier. Start looking for their successors in case it all goes wrong. It’s okay, someone has to take the blame and you are too important for your organisation to be the one.

The soft market is a myth. As long as you keep growing you can pay last year’s losses with this year’s premium. So what exactly is the problem? The fact achieving growth rates that exceed the growth of the underlying market – at a moment when everyone else is doing the same – seems a somewhat bad idea, is a technicality. Okay, cashflow underwriting is work-intensive but resources are available, and if you don’t pay them a lot the cost is manageable. And that will come in handy later when we look at what the reinsurers can do for you. All looking good so far.

Take out the competition This is a very simple concept that many

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“If you undercut prices by even 25 per cent your competitors will have to be even cheaper. it will ultimately kill them” overlook. If the cake is not getting bigger, and you want a bigger share of it, make sure there are fewer people at the table. Mergers and acquisitions are still hard to achieve in our region as giving up sole control of an organisation is perceived to be a sign of weakness. So that won’t work. But if you undercut prices by 25 per cent your competitors have to be even cheaper. It will ultimately kill them. It might not be very healthy for you either, but that’s another technicality. At the same time publicly accuse them of being overly aggressive and cheap. We don’t want anyone to see you as being the bad guy.

Don’t get distracted by details, think of the big picture Enterprise risk management, risk-adjusted capital and return on equity are for the more narrow-minded. It’s perfectly sufficient if you can talk about it when the audience requires it, as we have seen earlier. I mean, come on, you’ve got it all under control and know what is going on, so why bother implementing processes no one will stick to? Or consider irrelevant things such as accumulation control, which really is just a cumbersome exercise. The wordings are another area you should not waste your time on. What’s all the effort worth when all your losses will be paid anyway, no matter what the policy may or may not say? Your mission in life is much nobler and your place in history will show that you had it right.

If you lose money make sure it’s someone else’s You gotta love the reinsurers. You can request whatever you want, you’ll get it. They may bitch and moan, but as soon as you casually throw in that you might consider changing your panel they will roll over. And if not, just replace them. The great thing is there are so many reinsurers out there you can do this for years. It helps if you don’t have all the statistics they are requesting. Promise them that you will start collecting the respective data as of next year and then forget about it. Repeat this annually if necessary. Also, feel free to ask for outrageous commissions and

On the up: As long as you can keep growing, you can pay last year’s losses

explain how work-intense your business is and how big your acquisition costs. If you charge them 25 per cent, but your real cost is only 20 per cent, you can bear an additional five loss ratio points. Sounds like a plan. And don’t give it all away by keeping any meaningful retention. You know that the business at some point will lose money. But why should it be yours?

“You gotta love the reinsurers. You can request whatever you want, you’ll get it” The world is your oyster You are getting bored and need to spice up your business plan a bit? Or are your competitors announcing expansion strategies that are leaving you looking a bit... dull? Then why not start to do business in other mature markets around the world? If you can make it here, you can make it anywhere – and Brazil is not that far away in this day and age of electronic communication. Make sure you call it geographic diversification and go for a fact-finding trip to Rio with your favourite broker – the one that pays. Global expansion is also helpful when you are being questioned for your results at home. How better to distract from the misery in your backyard than by announcing to enter international high-value assets markets. A bit of Gulf of Mexico windstorm

exposure anyone? I heard the rates are quite high at the moment.

It will be alright. Won’t it? No, I’m afraid, it won’t. If Einstein was right then one of the basic laws of physics is that for every action there is an exact opposite reaction. So, if you are following all of the above steps then someone somewhere must be doing the exact opposite: focus on technical profit, reduce growth during the soft market, keep higher retentions, partner with their reinsurers… Well, either Einstein messed up a few of his theories or the insurance industry is the only known phenomena that defies the laws of physics. Because, for some reason, everyone seems to be doing the same thing at the same time, which really only serves one purpose: to further and further accelerate the development to a moment when it spins out of control. It won’t be a nice sight, but hopefully at least Darwin had it right with his Theory of Evolution and our industry will develop into something stronger and more resistant. CONTRIBUTOR:

Michael Gertsch is chief underwriting officer at Dubai-based reinsurer Gulf Re

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special report_health

healthy outlook? The spread of compulsory medical insurance schemes across the GCC gathers pace, but demographic and pricing challenges need to be addressed, says Dr Dennis Sebastian

T

he GCC private medical insurance industry is undergoing progressive change largely driven by a fundamental shift by the regional governments in implementing a spate of reforms to progress away from a total public sector-funded model, to a competitive market-driven one. This has resulted in the introduction of legislations that require employers to increasingly provide health insurance or bear the health expenses of their workers. This is complemented by a constantly increasing growth in population; changing demographics; a steep rise in the incidence of chronic illness; poorly controlled inflation; global innovation in medical technology and new drugs; increasing medical complexity, and an increase in private-sector participa34 I

tion in healthcare. These are all trends and challenges emerging in the GCC.

Key drivers of healthcare cost and demand‌ Are we pricing enough? Health-risk factors: Among the workingage population in the GCC, lifestyle diseases such as diabetes, high blood pressure, heart disease and obesity have emerged as a particularly serious concern. According to WHO estimates, these illnesses are responsible for nearly 50 per cent of all deaths in the region. Demand for treatment: Over the next 20 years, treatment demand will rise in the GCC by 240 per cent, with cardiovascular disease, diabetes, eye disorders, cancer and

musculo-skeletal disorders topping the list with more than a 250 per cent increase each. Also, as technology advances, so does volume of treatment. Cost of healthcare delivery: Healthcare in GCC countries will cost about US$60bn by 2025, increasing fivefold from today. Cardiovascular disease will become an enormous cost burden on the GCC. Whereas today it already accounts for 12 per cent of total healthcare expenditure in GCC countries, this will double by 2025. In addition, patient expectations in the GCC are rising, which is a key cost driver Population growth: By 2015, the size of the population will increase at a compound annual growth rate (CAGR) of around three per cent, one of the highest in the world. As a result, the total GCC population in 2025 will be almost twice the size it is today. Ageing populations: Older people generally need more medical care

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and have more expensive health profiles than younger people. Improvements in life expectancy over the past quarter of a century have left the GCC with an increasing number of elderly people requiring care.

Cha llenges faced by insurers/ reinsurers: a) Rat race competition As a result of the effects of globalisation on an investment-hungry region, new players are emerging in the market at a worrying pace and regional governments have not been shy in granting licences either. Twenty-four companies have been licensed in Saudi Arabia, while the Health Authority of Abu Dhabi has licensed 27. This, coupled with the presence of government-backed health organisations in some countries, results in the following: • Intense competition leading to severe undercutting • Limitations in access to quality care • Lack in differentiation of benefit offer • Government-backed health organisations having a natural competitive advantage over private players and their relationships with providers • Rapid entry and exit by international and local reinsurers, leading to limited availability of reinsurance capacity b) Profitability? The onset of mandatory health insurance has opened the doors to cover a tremendous number of lives. W hen considering the competitive environment, the payers ideally have to undertake careful and focused planning through met ic u lou s a nd r igor ou s m a r k et assessment and feasibility studies for profitable investment returns. In reality this is not the case. Insurers are largely focused on the last bit of extra commission they can earn, and protecting most, if not all, of their risk with readily available “top-line hungry and experimenting” reinsurers. The case for profitability has not yet been established and all of the drivers of demand for healthcare, as listed earlier, are significant impediments. Additionally with medical inf lation, the inability or lack of initiatives by the regulators to regulate provider pricing and the lack of actuarial data makes pricing difficult and prediction of profitability even harder.

c) Is enough being done for prevention? Most health insurers are focused only in treating the problem as and when it happens. While building a healthier society through better health awareness, incentivising better healthier practices and improving delivery of care and quality will create a financially sustainable healthcare system, and be critical for the future of the health insurance industry in the region. Lifestyle-related illness in particular (which is expected to be the key cost driver) can be prevented through valueadded services such as disease management and wellness programmes. As they say: “In medical insurance every penny saved has a value for a better bottom line.” Is enough being done by the payers? No.

“Insurers are largely focused on the last bit of extra commission they can earn”

d) Is out s ou r c i ng to t h i rd-pa r t y administrators effective? The business model of most regional TPA is top-line, volume-driven “critical mass”, as they call it, while the business model of payers ideally is bottom-line, profitability-driven. This alone qualifies for an immediate case for a conflict of interest. To top this, TPA also has additional revenue through annual volume discounts and a sharing of the negotiated discounts in full is questionable. Then what would be the driver for an independent TPA to reduce claims cost? Better accountability and improving transparency to align mutual interests is an additional challenge, which can yield better and sustainable results.

Challenges faced by providers of care An increasing flow of patients from the public to the private sector has resulted in the following challenges: • Need for infrastructure changes – some providers have had to perform a total overhaul • Overburdening of an underdeveloped private sector November-December 2010 I

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special report_health

Progress report on mandatory health Insurance – Where are we now? Bahrain

• General Organisation for Social Insurance (GOSI) provides insurance services to expatriate workers • Mandatory insurance for expatriate workers in companies with more than 500 employees in planning phase; expected to be introduced in 2011

Saudi Arabia

• • • •

Abu Dhabi

• 2006 – Health insurance made compulsory for expatriates of companies with more than 1,000 employees • 2007 - Health insurance mandated for all expatriates • 2008 – Health insurance plan extended to all UAE nationals in Abu Dhabi

Dubai

• Plans to introduce mandatory health insurance for expatriates and nationals by 2011

Qatar

• Plan to introduce compulsory health insurance for expatriates • On producing a government-issued card, non-nationals can avail subsidised healthcare services at government hospitals

Kuwait

• Expatriates need to pay a health insurance premium to the government

Oman

• Mandatory health insurance law at planning stage

2006 – Regulation was passed requiring compulsory health insurance for firms with more than 500 expatriate employees 2007 – Law extended to firms with more than 100 expatriate workers 2008 – Law extended to firms with more than 50 expatriate workers 2009 – Extended to all companies

• • • • • •

Need to improve clinical accountability • Limited opportunity for proactive – deliver higher standards of care and participation to plan better outcomes. better reporting standards Conclusion Financial outcomes – improved but Healthcare demand and spending are rising interrupted cash flow sharply in the GCC. If governments want Resources – need for increased insurance-related staff and technical the private sectors, both service providers resources, a function hitherto that may and financiers, to play a bigger role in their not have existed in their scheme of things healthcare systems, then they must make Improving regulations major regulatory and policy changes. Recognising health insurance as a separate Better patient awareness, thereby and standalone line of business, as done creating the need for accreditation in Saudi Arabia and Abu Dhabi, is probIncreasing cost for delivery ably a major step for consideration as we of healthcare move from a welfare model to a marketChallenges faced by the insured driven one. Employers have had to quickly adapt to the changes and provide coverage “The business model for t hei r employees. T he appoi ntof most regional ment of specialised employee benefit managers is a growing trend observed TPA is top-line, with large employers. The financial volume-driven impact in an era of global recession has ‘critical mass’” been the key challenge to overcome. Many of them employ “corner- cutting” approaches such as paying short-term premiums until residence permits are Encouraging better private-public stamped, and self insuring until the partnerships, combating the rising incinext residence permit renewal. Key dence of lifestyle diseases through focused challenges faced are: specialty care and preventive/wellness programmes, the government discon• Budget constraints tinuing to be both a payer and provider, • Tougher one-sided regulations and creating a central pool for purchase • Rising cost and impact of medical of medications and equipment and other inflation and chronic illness 36 I

hospital utilities will facilitate a seamless transition and address key challenges of cost of delivery – for better outcomes and a sustainable development for all stakeholders in the health system. Despite all the challenges, there is reason to be optimistic, as nowhere else in the world has there been such a rapid uptake in response to the concept of a mandatory insurance programme. The lessons learnt and problems faced by mature markets in fixing their health insurance systems should enable the GCC countries to have an unprecedented opportunity to learn, plan and design, early on, an ideal insurance model to fit the needs of the market.

CONTRIBUTOR: Dr Dennis Sebastian is the chairman, medical committee, Bahrain Insurance Association, the only ILO trained and certified social health insurance developer in the private medical industry within the GCC, and the assistant director for medical reinsurance at the Arab Insurance Group

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market report_reinsurance

Beyond Reinsurance Convention Predictions If the market is to grow steadily and with less volatility, a firmer commitment to regulatory development, prudential supervision and intellectual professional development is a must, James Portelli says Introduction The Monte Carlo Rendezvous and the Baden Baden meetings herald the major reinsurance renewal season and, with them, a potpourri of predictions and admonitions ranging from broker soapbox sermons to subtler and more learned perspectives from leading reinsurers. Market cycles and competition are recurring themes at these gatherings. Of course, a hot topic this year is the aftermath of the financial crisis. The prevailing sentiment, particularly among brokers (but also voiced by Lloyd’s in the course of this year), is the ‘threat of more regulation’. Many feel, “we’re not the bad guys; the banks are”, leading to a conclusion (in my humble opinion an erroneous one) that perhaps we should 38 I

not be “treated like the banks” by regulators. Little do we realise that the problem was fundamentally not banking- or insurance-related, but a credit problem. Simply because the insurance industry was not a ‘culprit’ this time around does not mean we are immune to it. Do the terms ‘ London Spiral’ or ‘LMX’ from the early 1990s ring a bell? We can spin the story on these two events almost two decades apart whichever way we choose. But, they are intrinsically similar, ie credit (or counter-party credit) problems with governance lapses or market indiscipline or bigotry at their core; one event perpetrated by insurers and the other by bankers or pseudo-bankers. Synthesised, one can encapsulate both into a simple phrase: greed beyond reason.

Ma rket c ycles: cost of capita l vs. catastrophe The topic of the credit crisis (or its aftermath) is also not unrelated from the cyclical nature of the insurance business and also from what some practitioners label as competition. I am not an economist, so if there are any economists reading this who disagree with my arguments, please feel free to contribute. But, as a market practitioner, it appears what we are experiencing is not retail market competition but market aggression. There is excess insurance capacit y relative to insura nce dema nd, a s compa n ies t r y to ma x imise on t heir return on equit y w ithin a w ider, prolonged depressed economic scenario.

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What’s the difference between aggression and competition? rectified in a series of short-run positions. Hence the reason for soft and hard market cycles. In the grander scheme of things a short-run hard or soft cycle is more or less frictional and addressed by controlling the cost components of the ‘office premium’, ie restructuring

The net result may be similar, but the processes leading to it would be different. Therefore the strategies to combat it need to be different. In a competitive situation, ceteris paribus, one witnesses excess supply relative to demand (or vice versa) being

money) as well as at pricing (and what one is giving within that pricing since, as the actuaries would attest, there is no such thing as a free lunch) etc. These are all effective short-run operational tactics when playing the competition game.

of one’s reinsurance (layering, pricing, over-riders, reinstatements), a closer look at claims and their administration costs, a knock-down effect on retail acquisition cost reflecting changes in over-riding commissions, a closer look at one’s credit policy (since time is

FIG 1 provides a snapshot of world premiums over the past two decades, illustrating the otherwise cyclical nature of insurance markets and the prolonged soft market scenario in recent years.

Comparing the rate of global growth GWP to the annual movement in premium as a percentage of GDP, the revelations are stark. We can clearly etch out the three periods of relative market hardening globally during the past couple of decades.

1993

1999

2002

This is post-LMX/London Spiral debacle coupled with the turmoil in the finance/investment market at the time. As insurers we can try to pin the blame on asbestosis, pollution or hurricanes, but the common lapsus was the market’s inability to assess the full extent of the counter-party credit exposure in the insurance, reinsurance and retrocession markets. Post1992 there was a three-year cycle of a relatively harder market. It is interesting to note that the initial year is generally harder, but then starts to settle at a lower level almost immediately (this is evidenced from the premium to GDP percentage).

There was a slight ‘build-up’ from 1997 to 1999 mainly due to the uncertainties and perceived risks associated with the millennium change. When, on January 1, 2000, people realised that no systems had crashed and no Armageddon had occurred as a result of technological hitches, the insurance industry experienced an immediate softening.

The immediate aftermath of September 11, 2001, resulted in a panic surge in some premium classes or products such as marine hull, energy, aviation, terrorism etc. The fears, however, dissipated as fast as they struck.

It is interesting to note that the rate of premium growth internationally between 2003 and 2007 was relatively healthy and does not correspond to the movement in premium as a percentage of GDP for the same period. In fact, the relationship between the two is negative, notwithstanding that global premium and gross domestic product both independently grew during these years. This is attributable to a number of factors. What we witnessed was not a short-run (frictional) competitive scenario but a structural (long-term, sustained) deflationary scenario brought about by a combination of factors. Other

than the small panic blimp immediately after September 11, 2001, affecting specific insurance classes or products, and the earlier perceived millennium threat, the market has had a relatively soft cycle of 15 years. Why is this? The post-9/11 petroldollar boom, the Bush administration spending like there is no tomorrow, irresponsible consumer lending, the unregulated mutation of derivative markets, double-digit inflation in countries showing greatest growth (such as in the BRIC economies and the GCC region), as well as other factors all contributed to a demand that, in hindsight, was synthetic and/or inflated.

Notwithstanding the synthetic nature of demand, this was met with increased insurance and reinsurance supply. The post-crisis result is evident. The UK market as an international insurance melting pot suffered a 50 per cent drop in its insurance consumption growth rate when comparing its rate of growth pre-crisis (2006 to 2007) to post-crisis. And this 2006 to 2009 drop has not only happened in the UK or the USA (13 per cent drop) but, with a delayed effect, is also being witnessed in developing markets (Brazil -25 per cent, Russia -32 per cent, India -18 per cent, China -15 per cent and the UAE -24 per cent), as shown in Figure 2.

FIG 2 effect of catastrophes in retail pricing Sustained excess capacity means sustained lower pricing. Is this competition? No. Particularly in the retail insurance market, is it aggressive under-cutting (ie price-driven tactics)? Yes. Since it is a longer-term structural problem, longer-term strategic

positioning (and not tactical warfare) is required to address this phenomenon. The above clearly illustrates that notwithstanding the widespread devastation of such events as the BP (Gulf of Mexico) oil spill, the myriad of hurricanes and

floods, terrorist attacks, etc it is not these events but the market’s adjustment to credit requirements (whether or not driven by these events) that dictates market cycles. In some markets, ie the GCC insurance markets, such events as

Hurricane Gonu came and went, but because the cost of capacity (in other words reinsurance counter-party credit or newly licenced capital) remained readily available at economic pricing such events have had a negligible effect on retail pricing.

Source: J. Portelli - MSc Insurance & Risk Management Lecture Notes (Glasgow Caledonian University, UK, Sept., 2010)

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Arabian Eye

special report_reinsurance

The UAE market pre- and post-crisis Is the GCC or Middle East insurance market in sync or immune to the above trends and patterns? To what extent is it exposed to the same cycles and counter-party credit exposures? The short answer is that although an emerging market, it is relatively more volatile, but nevertheless showing the same trends as the global picture, as indicated in Figure 3. FIG 3 The following interesting differences do, however, emerge when compared to global statistics As an emerging market, the UAE was going through a period of unprecedented growth, particularly from 2004 onwards. This is witnessed not only in the dramatic growth in GDP, but also in a 66 per cent growth in insurance as a percentage of the GDP. This reflects the growing need of contractually-, project-, financeor compulsory-driven insurances as a result of the infrastructure, economic and demographic growth. As would be the case with any emerging market the relationship between cost of capital and/or credit and insurance growth is more pronounced because insurance

is more of a by-product to other ongoing economic or demographic activity in such markets. Insurance as a percentage of GDP is significantly volatile (unlike global statistics, which are dominated by more mature markets such as Europe and the USA) and one would, for example, expect the rate of growth in insurance penetration in the UAE (represented by insurance as a percentage of GDP) to shrink in the immediate future (2010–2011). There has been a delayed reaction to the economic crisis within the region as far as insurance is concerned because of the relative

availability of economical insurance capital, whether in the form of new insurance licensees over the past five years or in the form of international reinsurers becoming more active in the region. But the impact of the crisis has not been averted; it has merely been delayed, as illustrated in Figure 2. Therefore, given the above trends, how and when will the regional insurance industry emerge from the crisis? Although being part of the tertiary sector, capitalisation, solvency and regulatory requirements inhibit an insurance company’s elasticity of supply.

Therefore, since it is relatively difficult to exit the industry once a company is capitalised, it seems more plausible for several retail insurance companies in the region to continue fighting for market share notwithstanding the prevailing unfavourable market conditions. This is further aided by the availability of reinsurance support. However, the results of several companies in the region (particularly the younger ones) speak for themselves. Figure 4 shows the deteriorating results, even eating into equity, of some of the newer insurance companies in the UAE.

Insurance Companies/Movement in Premium Equity (Results June 2009–2010) (2009-10) (2009-10) Dubai Islamic Insurance +46% -1% Meethaq Takaful +4301% -6% Takaful Imarat +48% -1% Dar Al Takaful +157% -10% Abu Dhabi Takaful -39% +7% Green Crescent +84% -10% Source: Analysis of public domain information of figures as of June 2010 by J. Portelli

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Arabian Eye

FIG 4 Latest UAE Insurance Licensees

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Arabian Eye

The following factors will continue to adversely affect insurance market recovery in the region Insurance, particularly retail insurance, is less (or not) systemic and therefore we tend to ignore the fact that lack of market discipline can lead to structural risk with long-term/chronic effect. There is too much of an ‘each to his own’ syndrome in the current market environment which, unless we address systemically, will only serve to continue hurting net results. Greater market discipline and co-operation is required to counter this. In most of the GCC insurance markets, and more certainly in the UAE, there is still a dearth of technical expertise. This will continue to propagate a tactically reactive, as opposed to strategically proactive, management. It is sound knowledge (not solely experience) that drives

vision. The industry as a whole, probably driven by regulators, needs to commit to structured licence-driven qualifications as well as structured continued professional education; Proper regulation and supervision is still elusive in a number of GCC states. This is even more the case with prudential supervision than with the actual drafting and enactment of regulations. Internationally, some are hoping that Solvency II will bring more discipline to the market and address these problems. However, this might not necessarily be the case for our region for four main factors, namely: Capital in insurance can be bought and sold, albeit at a price. So

more stringent capital requirements under Solvency II will be addressed by higher outward reinsurance from the lower capitalised entities. Out of the top 10 insurance companies in the UAE, for example, nine consistently spend proportionately much more (in percentage terms) on outward reinsurance than they recover on reinsured claims. The above serves to shift competition from the primary (retail) market to the secondary (reinsurance) market. This is already the case in most of the Middle East markets, and certainly in the UAE, where several cedants are little more than ‘reinsurance agents’. Solvency II will not change this. Solvency II, although intended to have far-reaching implications, will

be particularly onerous on the EU market. Europe accounts for about 40 per cent of world premium/ insurance activity. Therefore, in the grander scheme of things, it will not be globally as far-reaching as one would wish it to be. The delays experienced in getting consensus to implement Solvency II seems to suggest a lack of political will on the part of the EU member states. This does not augur well and further suggests that once implemented, it will not solve current prudential issues because these are essentially governance/ operational risk-related and not quantitative issues. The regional market already has its own prudential and/or regulatory challenges to contend with.

Conclusion I n a n ende avou r to ke ep up w it h geometric GDP grow t h, some of t he regional markets ran at a time when they should have been wa lk ing. The disproportionate grow th in capacity, both in the form of new insurance licensees as well as increased reinsurance presence during a period of prosperity, has further heightened the hunger for top-line growth. All of this has not been

matched by the necessar y regulator y development, which is critical (albeit unpopular) for any young market. If the insurance market is to grow steadily and sensibly and with less volatility, a firmer commitment to regulatory development, prudential super vision and intellectual professional development is a must. Will the market survive post-crisis without these factors? Yes.

But why merely survive when you can prosper?

CONTRIBUTOR: A Chartered Insurance Practitioner by profession, James Portelli is also a Fellow of the Chartered Insurance Institute and the Institute of Risk Management. Portelli has been active in insurance in Europe and the Middle East for the past 20 years, first moving to the GCC in 1998. He also coordinates Middle East Regional Group activities of the (UK) Institute of Risk Management. Views expressed are personal. November-December 2010 I

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special report_piracy

troubled waters Swiss Re’s Mario Ciancarelli, Head of Marine for Asia, the Middle East and Africa, says cargo underwriters, especially, are at risk from the growing menace of piracy Hijackings: Gulf of Aden and Somalia

A

ccording to the Kuala Lumpur-based Piracy Reporting Centre, of the 20,000 or so ships plying the waters around the Gulf of Aden and Somalia each year, 217 were subject to hijack attempts in 2009; of these 47 vessels were successfully hijacked and 867 crew members taken hostage. Estimates put average ransom payments for the release of each ship at anywhere from US$2m to a then all-time high of US$7m. Yet cargo and hull underwriters in various markets are still reluctant to introduce special terms, conditions and premiums for the extra expo42 I

sures from piracy that are commonly acknowledged today.

Who pays the bill? As incidents of piracy continue to rise, so do the ransoms paid to these outlaws. As a result, exporters and importers are increasingly reliant on the insurance industry to safeguard the continuity of their own and their customers’ operations. When pirates strike, companies will always make it a priority to save the lives of crew members and passengers. Consequently, paying the ransom is usually the only option.

While governments debate whether to send more warships to patrol the pirates’ hunting grounds and the courts ponder the legal conundrums of piracy, there is little other help for ship owners or charterers. Arrest and prosecution is sometimes problematic and often not an effective deterrent. Some help does come from Kidnap & Ransom (K&R) insurers, who are at the forefront when it comes to negotiating and deciding ransom payments. But where such coverage is absent, a significant part of the expenditure is ultimately borne by the cargo interests.

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This is because even before ransom changes hands, the ship owner will often claim reimbursement plus related expenditure from cargo, ship and freight interests as a general average contribution. Cargo owners end up footing most of the bill as their contribution is based on the undamaged cargo’s net value at the place where the voyage ends. Investigations into such payments take time, though, involving not only the general average adjuster but also other costly adjusters, advisors, negotiators and lawyers, as well as protection and indemnity (P&I) clubs and insurers.

Who is most affected? Detailed figures on how insurers are affected by piracy are often confidential. K&R underwriters are usually the hardest hit, followed by their cargo counterparts. Ranked third are war and strikes/hull underwriters, followed by P&I underwriters. Not included in this list are governments, which sometimes pay out substantial sums for ransoms while financing navy engagements at the same time. The other “payers” listed have no need to be out of pocket: if they charge an adequate price and take the necessary measures at short notice, they can achieve an underwriting profit. Not so for the cargo underwriters, though, who often seem to be the last to catch on. They not only become involved too late in piracy cases, but also many are unable to tender short notice for piracy risks. Moreover, there has been a long tradition of not charging extra for ever-more-complex piracy related exposures – except where the Cargo Piracy Notice of Cancellation JC2008/024 11/12/2008 is in use. Cargo interests, therefore, need to be reminded that where no or insufficient insurance and no loss prevention programme is in place, they, too, are probably at risk. This exposure can include losing control over the goods; having to send new shipments; facing company pressures (to either find a new carrier or renegotiate terms); foregoing prepaid freight monies and losing valued customers. No matter where a company’s position is in the supply chain, everyone recognises this situation is unsustainable and must be improved for the good of all. The question is how.

Involvement of u nder w r it i ng community is crucial As an important stakeholder when it comes to piracy crimes, the underwriting communi-

ty’s active involvement is pivotal to achieving any change. This involvement starts with a more thorough understanding of some key principles. Piracy is not the same as terrorism: The prevailing view is that piracy is perpetrated for purely personal gain. This is in contrast to terrorism, which is politically motivated or carried out for religious reasons. Both legally and in marine insurance, piracy is treated very differently from terrorism. In addition, there is no credible link between piracy and terrorism in Somalia and the Gulf of Aden. But if any link to terrorist activities were to be established, payment of ransom would be illegal according to most national laws. Security measures a must: A key terrorism-related security measure was taken after September 11, 2001, with the introduction on July 1, 2004, of the International Ship and Port Facility Security Code, or ISPS Code. Although non-compliance discharges a marine insurer from liability,

this measure is not applicable to piracy, even if the affected ports, ship owners and waterborne risks are virtually the same, and shipping and insurance intentions are alike. It is reasonable to assume that if port or ship owners are not ISPS Code-compliant, they will be more vulnerable to piracy attacks. It is conceivable, therefore, that marine insurers might cite ISPS Code noncompliance to escape piracy-related claims. The same could apply to the duty to disclose: An assured is obliged to disclose every material circumstance known or which ought to be known. If an assured party fails to make this disclosure, and in the absence of any other provisions, the insurer is under no obligation to pay. Cover is neither consistent nor unconditional: Even for the same underlying risk, different types of marine insurances may not provide the same coverage. Thus, piracy may at times be covered, excluded, or not properly defined. November-December 2010 I

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special report_piracy

Some covers – including hull, piracy, war and strikes – are placed with the same underwriters, some are placed elsewhere, or self-retained. Some markets circulate lists grouping locations by different severity risk categories. Changes are frequent and diverse, and so are insurance standards. Nor can you count on sue and labour or ‘non-insurance’ institution general average – whoever sits on the other side of the table is basically not keen on paying a bill for something they did not order. It would be unwise to rely on your marine insurance to pick up any kind of piracy-related expenditure that has not been documented in writing. Remember, too, that whereas piracy is covered under many cargo and hull clauses, ransom is not an ordinary marine peril and not listed under the risks covered. But even this starts to blur if the question is raised as to whether piracy coverage automatically extends to ransoms. Accepted practice, primarily in AngloSaxon marketplaces, has been for ransom payment in a piracy case to be included in 44 I

contributions for general average or sue and labour. But given the characteristics of modern piracy and changes in average ransoms over recent years, interpretations of marine insurance coverage are likely to change, too. Cargo owners and underwriters share an interest in protecting their valuable property. Therefore, if they anticipate a need for piracy-related ransom coverage, they should express this need clearly in special terms, conditions and premiums. Not doing so allows the insurer to decide each case solely on its own merits.

Let common sense prevail Generally speaking, assureds and parties with an insurable interest should not rely on others to mitigate the threats piracy poses to their ability to pursue a profitable business. They need to assume the responsibility themselves and adopt a common sense approach. And the very first question they should pose is: Would we place ourselves at risk by travelling in these

waters? If yes, what route and precautions ought to be taken? It is always useful to talk to the marine insurer to clarify questions or special precautionary measures before embarking on a journey. Besides when adopting best management practices to deter piracy in the Gulf of Aden and off the coast of Somalia, it is important to make sure that there is ISPS Code-compliance of ship and ports en route. An additional point to consider is to check whether ship owners or charterers have purchased bespoke K&R insurance, which offers rapid advice, negotiators and ransom payment. One should also aim for maximum possible transparency and inform the marine insurer of logistics arrangements as well as the shipping company’s piracy prevention activities and piracy attack response plans. It is also crucial to give clear instructions in contracts with sellers, buyers, freight forwarders and carriers regarding the best possible route and seaworthy ships.

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special report_gulf conference

IAIS 2010: moving towards macro-governance? We report from the 17th Annual Conference of the International Association of Insurance Supervisors held in Dubai recently

I

t is interesting that this year’s International Association of Insurance Supervisors (IAIS) Conference held in Dubai in October more or less coincided with the annual reinsurance convention in BadenBaden, Germany. Intriguingly, despite the array of topics and the different audiences in these gatherings, the key ‘take-home’ message for both events was similar: There is a need for greater discipline and co-operation whether at company, market or industry level. The two distinct audiences – regu46 I

lators at IAIS on the one hand and market practitioners at Baden-Baden on the other – may have differed in opinion as to the extent or nature of governance, but there was, nonetheless, a unifying theme between the two, perhaps synthesised in the words governance, discipline and co-operation in an otherwise competitive market. One of the by-products of the financial crisis has been a sustained soft market in both retail insurance as well as reinsurance, as excess supply, created during the years

of plenty, seeks to fill the demand void for the years that followed. The sustained deflationary market is being viewed by many as a threat in various insurance industry or practice strata. For example, quoting Ludger Arnoldusson, a member of Munich Re’s board of management at Baden-Baden this October, the company said it would continue to walk away from inadequately priced business. Similarly, at the same convention, Martin Albers (Swiss Re) renewed his call for companies to focus on profits rather than premium.

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Optimistic: Braumüller expressed confidence the IAIS will be able to tackle any challenges

At another convention, on another continent and in front of a different audience, speakers at the IAIS Conference in Dubai discussed how to counter this adverse state of affairs. Among the measures they proposed were the implementation of the Comframe Directive, Future Safety Net & Resolution Framework; and concerted efforts in the implementation of IAIS Standards internationally. The Comframe Directive is aimed at supervising internationally active groups. The industry’s view, encapsulated in a recent Geneva Association paper, is that the insurance industry per se is not systemically relevant. This means it is largely believed that if an insurance company fails, because of such factors as the nature of the business, and the way it was run, etc, its failure would probably not have negative repercussions on the wider economy. That being said, there are some companies that, perhaps due to their size or international reach, may be deemed to be systemically relevant. Among these one would include the larger international insurance groups.

“…the international architecture for insurance supervision is currently weak…”

Important role: DFSA’s Paul Koster says the insurance industry is key to stability of markets

The aim of the Comframe Directive is to provide the necessary framework for the supervision of such groups. Monica Mächler of the Swiss Financial Market Authority described Comframe as a multilateral, multi-disciplinary and multiperspective framework for conglomerate supervision. While in principle a recommendation for conglomerate supervision in respect of large, international and systemically relevant insurance groups is a step in the right direction, various industry figures provided their perspective on what is essentially a pioneering project in macro-governance. Michael Butt from the Bermuda Association of Insurers said: “If we are adding a new layer of supervision then we need to add efficiency, and not complexity and cost.” Karel Van Hulle of the European Commission said Solvency II may be a good model for Comframe to learn from. He added that if it is designed as a ‘principle-based’ framework it could risk becoming irrelevant. There was also a general consensus that the international architecture for insurance supervision is weak, and this was perhaps further attested by a “better than the Jones” sentiment turning into a friendly but heated debate between the panelists from the US and the EU. During the keynote address, Lord Adair Turner, chairman of the UK Financial Serv-

ices Authority, said the keys for financial services regulatory success, which could also be applied to the Comframe Directive, were that firstly such regulation should be sufficiently consistent to eliminate regulatory arbitrage; and secondly it would need to be continuously updated, particularly on interconnected and/or systemic risks.

“…there is a need for greater discipline and cooperation whether at company, market or industry level…”

One should also take into account that internationally active groups have more to do with complexity than size. A typical case, for example, would be a Lloyd’s syndicate writing business with as widespread a portfolio of work as that of a much larger international reinsurer active in several countries. The objectives of the Conframe Directive, once implemented, would be twofold: addressing the complexity of a group and reducing the complexity of an otherwise fragmented regulatory approach. This signals an expansion of the current prinNovember-December 2010 I

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special report_gulf conference

New horizons: Ian Johnston believes financial boundaries have shifted from west to east

ciple of ‘local’ regulation of entities, even if forming part of a larger conglomerate to macro-governance. Professor Fernando Coloma, from the Chilean Superintendence of Securities & Insurance, presented a paper entitled Concerted Efforts in the Implementation of IAIS Globally. It drew examples from Basel II and its relative weakness, exposed by the financial crisis, in perhaps relying too much on risk models.

“…the insurance industry per se is not systemically relevant…” As the deadline for the implementation of Solvency II approaches, there is an urgent need to: • Leverage preservation in addition to risk-based capital implementation • Preservation of prudential limits of invest ment • Postponement of the internal model implementation The internal model issue is often the subject of heated debate among various regulators in view of the relative subjectivity surrounding it, and hence the inherent possibility of regulatory arbitrage. On the topic of global implementation of IAIS standards, Jonathan Dixon, from the Financial Services Board of South Africa,

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Reforms: Lord Turner called for change in global insurance regulation and supervision

said regulation cannot be achieved through the widespread enactment of rules and/ or core principles, but only through their strong implementation. This is particularly relevant from a Middle East perspective, as regulation can only be as strong as the supervisory regime it underpins. The topics discussed were inevitably within the context of the current financial crisis. For example, Adel Mounir of the Egyptian Financial Services Authority led a discussion on the Impact of the global financial crisis on policy-holders and on Market Conduct Issues. An earlier panel debated the similarities and differences between supervisors’ responses to the 2009 crisis. In the second keynote speech, Ian Johnston, deputy chief executive, Dubai Financial Services Authority, set the tone for one such debate. The underlying theme of his speech was that financial boundaries have shifted geographically during the past decade from west to east. The Middle East’s share of global trade, for example, doubled between 2000 and 2008. Although an increase in the share of wealth does not mean the wealthier can supplant the influential, it does mean more equitable decision-sharing is warranted. In relation to this, Jose Ribiero from Lloyd’s of London, holding the fort for industry practitioners on a panel with higher regulatory representation, argued the case for micro- rather than macro-

governance. He quoted IMF findings when stating that the most vulnerable consumers were retail clients. Ribiero urged regulators present not to adopt a one-size-fits-all approach in spite of buyers and tax payers currently demanding higher consumer protection.

“…we need to add efficiency and not complexity and cost.”

The ultimate panel in the IAIS Conference focused on takaful and regional issues, more specifically the ability of takaful operators to restore market confidence post-crisis. Allusions and allegories of doors, walls, windows, fairytale figures and a Basel Museum were used to dress up what was otherwise an ostensibly pedantic subject of laws, rules, codes, core principles, regulation and governance within a framework of arguably the worst financial crisis since the Great Depression. In addition to stressing the importance of greater market discipline and cooperation, IAIS 2010 also underlined that “safe is good” and, in the words of Danielle Boulet, from the Autorité des Marchés Financiers, Canada, “If safe is boring, then boring is good.”

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london eye_news

london

Eye

Reinsurance Capital Set to Become More Accretive than Ever at January 2011 Renewals

A

on Benfield, the world’s premier reinsurance intermediary and capital advisor, recently released its 2011 Reinsurance Market Outlook report, which reveals that, despite a significant number of catastrophic events so far in 2010, the supply of rein insurance capital continues to grow at a faster rate than insurers’ demand for capacity. This imbalance means reinsurance will be the most accretive form of underwriting capital for insurers in 2011, and a primary capital management option for chief financial officers as they manage cycle risk and increasing regulatory and rating agency capital requirements. Meanwhile, chief underwriting officers will be looking to reinsurers to underwrite new products and partner on the challenging innovation work that will be necessary in most mature insurance markets to reverse the tide of declining industrywide premiums. 50 I

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In 2011, some primary markets will see industry-wide non-life premium reductions for the third consecutive year – an unprecedented trend. The ratio of non-life premiums to GDP is now at its lowest point in Aon Benfield’s dataset, which runs from 1970 onwards. To counter this trend, leading insurers will need to innovate their products, reduce expenses, potentially consolidate and return excess capital. Bryon Ehrhart, chairman of Aon Benfield’s Analytics and Investment Banking divisions, said: “Reinsurers are well capitalised and in a position to provide accretive capital management alternatives to CFOs in 2011. Their value proposition in casualty and specialty lines is challenged as insurers seek to retain more risk as revenue pressures continue in a softening global market. We will be leading the process of rekindling the innovation partnership between insurers and reinsurers to increase the value reinsurance can provide in challenging market conditions. Reinsurers will need to help insurers take new risks profitably to help them both grow.” November-December 2010 I

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training_risk & rewards

risk assessment: Uncertainty, Loss and reward W

hatever we do – whether crossing a road, playing football or embarking on a new career – risk and reward are involved. It has been about one year, ie at the height of the financial crisis, since the release of ISO 31000:2009, entitled the International Risk Management Standard. Prior to the release of the ISO standard, risk was generally defined in simple terms as the ‘possibility of loss’. But is it just that? ISO 31000 defines risk as the “effect of uncertainty on objectives” (ISO Guide 73:2009, Risk Management). Although this represents a marked difference from other definitions of risk immediately prior to the publication of the ISO 31000 standard, it also reflects a convergence with a more classical interpretation of risk. Insurance-like practices have existed for ages. In commerce and industry the term ‘risicum’ (N. Luhmann) can be traced back to mediaeval times in Europe. It was closely associated with loss or damage in marine ventures. This was also the time when marine insurance started to develop as a practice between merchants – first in Italian ports and later spreading throughout continental Europe. At the same time, perhaps because of Arab influence, the term ‘rischio’ was also used to signify good fortune. Therefore,

52 I

until the Middle Ages, ‘risk’ denoted uncertainty that could, on the one hand, present the possibility of loss and, on the other, represent good fortune. The subsequent adoption of the word ‘risk’ in English seems to have shed the potential ‘upside’ element of uncertainty, focusing more on loss. This possibly arose from the fact that commerce and industry (ie shipping, banking, insurance, etc.) was developed by the Genovese and the Lombards, who imported with them the more legalistic definition of risk. Consequently, for centuries, the accepted definition of risk concentrated more on the ‘downside’, ie the ‘possibility of loss’. This was not restricted only to insurance. For example, in corporate governance, the COSO report defines ‘risk’ as “the possibility that an event will occur and adversely affect the achievement of objectives”. The main differences between the ISO standard (ISO 31000:2009) and the COSO definitions are: • COSO focuses on events rather than the consequences of events. ISO emphasises ‘effect’ and ‘objectives’. • The emphasis of the COSO (Enterprise Risk Management (Enterprise Risk Management – Integrated Framework, COSO (2004)) definition is on ‘adversely’ (ie, the

potential downside risk). This is absent from the ISO definition. The development of risk management as a profession and its widespread application, particularly in commerce and industry, required greater alignment between risk and reward. Various vehicles, such as insurance, captive insurance, ART and other contractual means, exist for a company to transfer risk. However, risk remains an integral part of the reward process of any enterprise and, therefore, is core to an enterprise’s strategy. This development in risk management thinking over, arguably, the past few decades may have contributed to the paradigm shift in the definition of ‘risk’ from what was widely accepted in, for example, COSO Risk Management Framework to the new ISO 31000:2009 definition.

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To participate in this prestigious event contact: sophie@megaevents.net | t:+971 4 343 1200 | f:+971 4 343 6003 | P.O. Box 72045, Dubai | www.megaevents.net/insurance

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INDUSTRY DIRECTORY_CLASSIFIeDS Marine

We keep people moving. In Business. Through life.

Motor

When it matters most.

Arya Insurance Brokerage Co LLC BROKERS

Al Nabooda Insurance Brokers LLC Contact Person: G Prakash, director (commercial) Address: P.O. Box: 50523, 304 Abu Baker Al Siddique Rd, Diera, Dubai, UAE Tel: +971 4 268 2260 Fax: +971 4 268 2261 Email: contact@nigulf.com Website: www.nigulf.com

A new breed of insurance broker is here. Genuinely caring staff serve customers, reaching out to their heart, providing professional recommendations, in-depth financial analysis and comparisons, redefining conventional insurance and presenting tomorrow’s revolutions in today’s solutions. Experience the Al Nabooda advantage.

Arabian Marketing Services Co (AMS) Contact Persons: Adham Omer, Ahmed Jaad Address: P.O. Box: 52851, Jeddah, 21573, KSA

Tel: +966 2 697 1071/697 1063 Fax: +966 2 697 1039 Email: info@ams-ins-brokers.com Website: www.ams-ins-brokers.com AMS is an insurance and reinsurance broker and consultant, established in 1995 and operating as per SAMA regulations. Its head office is in Jeddah and it has a branch in Riyadh. AMS is one of the few truly independent brokers operating in the GCC markets, providing its prestigious clients with a high level of technical services.

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Contact Person: Sanjay Kalia, General Manager and Deputy Managing Director Address: P.O. Box: 8811, Intercontinental Plaza, Dubai, UAE Tel: +971 4 221 2838/3200 Fax: +971 4 223 8951 Email: aryains@emirates.net.ae; sanjay@aryainsurance.com Website: www.aryainsurance.com We are insurance consultants/brokers assisting our clients in purchasing their insurance needs such as marine, automobile, liability, life and medical from the market with the widest possible terms and lowest possible costs. During its relatively short life span, AIBC has accumulated more than 1,000 loyal clients, from small businesses to large corporations.

Chedid & Associates Contact Person: Joseph Faddoul Address: P.O. Box: 16-6515, Tabaris Square, Ashada Bld, 6 floor, Beirut, Leb. Tel: +961 1 20 22 02 Fax: +961 1 20 22 55 Email: info@chedidre.com Incorporated in 1998, Chedid & Associates is a reinsurance brokerage company that serves the Middle East and Eastern Mediterranean insurance companies. From day one, Chedid & Associates had a clear vision “to offer the insurance industry a performance-driven, customer-focused pool of talent to go the extra mile”. We provide treaty and faculative support for life, medical, property, engineering, casualty, marine and political risks.

Continental Group Contact Person: Alexander Varghese Address: P.O. Box: 26588, Dubai, UAE Tel.: + 971 4 335 3433 Fax: +971 4 335 2553 Email: alex@continental-intl.com The Continental Group is a leading insurance intermediary and financial services solutions provider in the region. Licensed by the Central Bank of UAE and the UAE Ministry of

Marine

Property

Economy, we represent reputed multinational and local insurance and financial institutions. At Continental, we realise that financial solutions are as diverse as your needs, and no one solution can serve everyone. Driven by the philosophy of building long-term, mutually beneficial relationships with our customers, we specialise in providing personalised solutions through a qualified and experienced team of consultants. With more than 14 years’ experience in the UAE and a large client base, we stand proud as one of the leading players in the financial services arena.

Earnest Insurance Brokers LLC Contact Person: Sam Thakker Address: P.O. Box: 114088, Office 113, Umm Suqueim Bldg, nr Noor Islamic Bank Station, 3rd Interchange, Sheikh Zayed Road, Dubai, UAE Tel: +971 4 338 5400 Fax: +971 4 338 8282 Email: earnest@earnestins.com Website: www.earnestins.com A trusted provider of insurance for commercial, personal and industrial risks, Earnest Insurance Brokers commands a unique and secure market position and maintains strategic alliances with only the most secure and well-respected insurers and underwriters. These alliances enable us to secure competitive terms for our clients. With a collective management experience of more than 125 years, our ability to recognise the exacting and often unique requirements of our clients sets us apart in today’s insurance market. Our commitment to risk management ensures we have the trust of all our partner insurance companies and underwriters in the local and international markets.

Public and Product Liability

Expat Services GmbH Dubai Branch Contact Person: Sebastian Opitz Address: P.O. Box: 112354, Dubai, UAE Tel: +971 4 341 5580 Fax: +971 4 341 5590 Email: sopitz@expatservices.ae Website: www.expatservices.ae Expat Services GmbH Dubai Branch (ESDB) is a Member of the BDAE Group of Companies. Its main office is located in Hamburg, Germany. ESDB offers unique Insurance Products for Individuals and Companies. A health insurance portfolio is available called the Expat Series. These products are insured through Emirates Insurance as fronting company, while HanseMerkur Reiseversicherung (Hamburg, Germany) as reinsurer carries 100% of the risk. Administration is carried out by ESDB. Claims are handled by a locally designated TPA.

Nexus Insurance Brokers LLC Contact Person: Paul Bromley Commercial Director. Address: P.O. Box: 124422, Dubai, UAE Tel: +971 4 397 7779 Fax: +971 4 397 4422 Email: paul.bromley@nexusadvice.com Website: www.nexusadvice.com Nexus is the largest independent personal insurance broker in the Middle East with an 20-year pedigree, offering insurance and financial planning solutions to both individuals and business. Nexus only promotes licensed products and is committed to training and business ethics. Nexus is unique in its relationship with the UK’s Chartered Insurance Institute to develop industryrelated training across the Middle East, providing further standards to which Nexus consultants must adhere. Nexus’s general insurance products are exclusive and have been manufactured to ensure that they meet clients’ demands.

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C


ty

INDUSTRY DIRECTORY_CLASSIFIeDS

Computer All Risks

Workmen's Compensation

Northern Insurance Brokers L.L.C. Contact Person: Muhammad Afzal Address: P.O. Box: 96092, Dubai, UAE Tel: + 971 4 258 2700 Fax: +971 4 258 2701 Email: afzal@northerninsurance.ae Website: www.northerninsurance.ae Northern was formed by a group of individuals who passionately believe in enhancing customer satisfaction by exceeding expectations. We are consistently committed to first-class service. Our innovative solutions are customised, contemporary and cost-effective. Rather than depending on conventional insurance policies, we have successfully merged convention with creativity. We study your future plans, envisage emerging risks and analyse the impact of present and future political, economical and legal requirements to create one solution that caters to your diverse needs. Besides insurance, Northern also provides reinsurance solutions. We help the insurers by arranging facultative reinsurance placements with well reputed local and international securities. In all our operations, we are backed by a well-established network of business relations with underwriters in the local and international markets.

Pearl Insurance Brokers Co LLC Contact Person: KA Subbrahmanian Address: M-4 Ahmed Ramadan Building, Salahuddin Road, Deira, Dubai, UAE Tel: +971 4 269 3398 Fax: +971 4 268 3741 Email: info@pibco.ae Website: www.pibco.ae Pearl Insurance was established in 1998 and is an associate of a major business group based in Dubai with an annual turnover of billions of dollars. Pearl is a member of Wells Fargo Global Broker Network – a worldwide network of selected interna-

Contractors and Erection All Risks

tional insurance brokers operating in over 100 countries. (Please visit http://wfgbn.wellsfargo.com/ for more details on the worldwide network). Pearl handles all classes of insurance including aviation, marine hull and oil & energy in a professional and transparent manner. Many corporates have chosen Pearl for handling their complex insurance requirements. Pearl is among the largest insurance brokers in the UAE in terms of premium with head office in Dubai & branch office in Abu Dhabi.

Protection Insurance Services WLL Contact Person: Osama Abdul A’al – MD, Samy Aziz -GM Employee Benefits

Address: P.O. Box: 33133, Manama, Kingdom of Bahrain Tel: +973 17 211 700 Fax: +973 17 215 309 Email: alhimaya@alhimaya.com Website: www.alhimaya.com A professional brokerage firm that completely understands your needs and requirements on reinsurance and provides ample solutions, we act as an intermediary, arranging and providing treaty reinsurance coverage along with facultative services in support. Our operation extends geographically to cover the Middle East. This market exposure has given us a broad experience and a deep understanding of the insurance markets that prevail. Hence, we have been able to develop excellent relationships with our clients and business partners across the Middle East.

Reliance Insurance Brokers LLC Contact Person: Rajan Nireshwalia, Chairman & Managing Director, K Mahendran, Executive Director Address: Flat 201, Mattar Al Tayer Bldg-3, Mina Road, Al Hudaiba, Bur Dubai, Dubai Tel: +971 4 358 0205 Fax: +971 4 358 0209 Email: info@relianceins.ae Website: www.relianceins.ae

Material Damage and Business Interruption Reliance Insurance Brokers has been established to provide professional insurance services for corporate clients. We specialise in the study and design of insurance programmes with a view of obtaining the best available insurance coverage for the various branches of insurance at the most economical cost. We are also a member of Wells Fargo Global Broker Network which is a worldwide network of selected International Insurance/Reinsurance brokers operating in more than 128 countries. (http:// wfgbn.wellsfargo.com). In particular, we also specialise in credit insurance which mainly covers the liabilities of debtors who either go bankrupt or default.

Sun Insurance Brokers LLC Contact Person: Arun Paniyan Address: 303, Gulf Towers, near Wafi City, Dubai, UAE Tel: +971 4 335 5399 Fax: +971 4 335 5393 Email: sunins@emirates.net.ae “Together we are stronger” Awarded Commercial Lines Broker of the Year, Sun Insurance provides cost-effective solutions for risk transfer by way of welldesigned insurance products. With a team of professionals, Sun Insurance Brokers handles the simple to the most complicated and complex insurance needs of corporates and individuals. Professional services Portfolio analysis: Undertake challenging assignments to analyse business activities and recommend cost-effective ways of transferring risks. Claims coordination: We handle claims from the most simple, such as a motor claim, to the most complicated claims that may involve negotiating with loss adjusters, lawyers and insurance companies.

Insurance General

Abu Dhabi National Insurance Company (Adnic) Contact Person: DANA M. HUDAIRI, Corporate Marketing & Communications Manager Address: ADNIC building, Sheikh Khalifa street, Abu Dhabi. P.O.Box: 839 Tel: +971 2 408 0100 Fax: +971 2 408 0625 Email: d.hudairi@adnic.ae Website: www.adnic.ae Adnic is a public shareholding company incorporated in Abu Dhabi, UAE with branches in Dubai, Sharjah, Al Ain and a representative office in London. Adnic offers all types of general & life insurance products including fire & general accident, engineering & casualty, life & medical, marine hull, cargo & aviation and motor insurance. Since its inception, Adnic has endeavored to be the leading and prominent provider of quality and affordable insurance products and services, and has managed to establish itself as The Reliable Insurer.

ACE AMERICAN INSURANCE COMPANY (BAHRAIN BRANCH) Contact Person: Giles Ward Address: Manama Centre, Unit 501 P O BOX 2725, Manama, Kingdom of Bahrain Tel: +973 16 554 400 Fax: +973 16 554 401 Email: mena@acegroup.com Website: www.ace-mena.com The ACE MENA region is an integral part of the global ACE Group of Companies, comprising the businesses of ACE Arabia Cooperative Insurance Company (Saudi Arabia), ACE Insurance Company Egypt SAE, ACE Insurance

To ensure your company’s details appear in this section please email: pamela@mediaquestcorp.com

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INDUSTRY DIRECTORY_CLASSIFIeDS Company (Pakistan), ACE American Insurance Company (Bahrain) and a Representative Office in the UAE. With an established presence in these countries and supporting partners throughout the region, ACE MENA Region provides tailored property, casualty, financial lines, accident and health insurance solutions for a diverse range of clients.

Adamjee Insurance Co Ltd Contact Person: Syed Zulfiqar Ali Address: Deira Tower, Floor 3, Flat 307, Deira, Dubai, UAE Tel: +971 4 222 4098 Fax: +971 4 228 5600 Email: aicuae@emirates.net.ae Website: adamjeeinsurance .com With its head office in Karachi, Pakistan, Adamjee Insurance estabilished a branch in Dubai in 1970 and is one of the oldest general insurance companies serving the UAE. Our core values of integrity, humility, fun at the workplace and corporate social responsibility help us to serve all stakeholders with a commitment to providing the best. We offer insurance services in the following classes of business: • Fire and property, • Marine, • Motor, • Engineering, • Miscelleaneous Adamjee believes in customer satisfaction by providing quality in product and services. Our objectives of providing maximum benefit to clients help us to attract clients from all sections of the community

Aetna Global Benefits Contact Person: Stuart Leatherby BA (Hons) ACII. Managing Director, Aetna Global Benefits, (Middle East) LLC Address: Suite 416, 4th Floor, Oud Metha Building. P.O. Box 6380, Dubai, U.A.E. Tel.: +971 4 438 7518 Fax: +971 4 428 7100 Mobile: +971 50 420 8176 Email: sleatherby@aetna.com Website: www.aetnaglobalbenefits.com, www.goodhealthworldwide.com Aetna is one of the leading diversified health care benefits companies in the US, serving approximately 36.5 million people. Aetna Global Benefits (AGB), the international division of Aetna, is a provider of comprehensive health benefits solutions and health management services for multinational employers, high-net-worth 56 I

individuals and government entities. AGB’s health benefits offerings include medical, dental, vision, life, disability and emergency assistance for employees and high-net-worth individuals who live, work or travel internationally. Health management services include fee-based programmes and products tailored to specific countries. These solutions aim to improve the quality and overall health outcomes within the local healthcare system. With the acquisition of Goodhealth Worldwide, AGB is one of the industry’s largest and most prominent US-based international benefits providers, supporting approximately 400,000 members worldwide from offices throughout the US, Europe, Asia and the Middle East.

AL FUJAIRAH NATIONAL INSURANCE CO. Contact Person: Ram Mohan Address: P.O. Box: 277 Fujairah, UAE Tel: +971 9 223 3355 Fax: +971 9 224 3444 Email: ho@fujinsco.ae Website: www.afnic.ae Al Fujairah National Insurance Co is a public shareholding company, established in 1976 with a paid-up capital of AED75 million underwriting all classes of general insurance through its branches in Abu Dhabi, Dubai, Sharjah, Fujairah and Dibba. It has a team of around 200 personnel.

Al Khazna Insurance Company Contact Person: Mr. Sameer Ebrahim Al-Wazzan

Address: Head Office: Abu Dhabi-East of Al Nahyan CampDelma Street No 13 P0 Box: 73343 Abu Dhabi UAE, Tel: +971 2 696 9700 Fax: +971 2 641 7998 Email: Khazna@emirates.ae Website: www.alkhazna.com Dubai Office Contact Person: Viresh Chand Dubai Branch: Plot 129/304 Business Avenue, Rashid Bin Saeed Al-Maktoum Street, Behind Nissan Automobiles PO Box: 8953 Dubai, UAE Tel: +971 4 294 4088 Fax: +971 4 294 4433 Email: viresh@alkhazna.ae Website: www.alkhazna.com

Al Ain Office Contact Person: Ms Fatiha Yacine Al Ain Branch: Al Khazna Bldg, Oud Al Tuba St PO Box: 20755, Al Ain, UAE Tel: +971 3 766 1700 Fax: +971 3 766 6404 Email: fatiha@alkhazna.ae Website: www.alkhazna.com Al Khazna Insurance Company (PSC) was founded in 1996 with a paid up capital of AED380 million. The company is authorised to write all classes of general insurance and reinsurance business. Today, Al Khazna Insurance Company is enjoying an excellent insurance position in acquiring clients’ trust within the UAE and the GCC. This positioning has encouraged the highly classified international reinsurance companies to provide the Company with outstanding covers and assisted it in maintaining an excellent reputation in the UAE market.

Arabian Scandinavian Insurance Company PLC Contact Person: Ahmad MA Al Kazim, General Manager and Managing Director Address: P.O. Box: 1993, Al Kazim Building III Floor, Al Garhoud, Dubai, UAE Tel: +971 4 282 5585 Fax: +971 4 282 5586 Email: ascana@emirates.net.ae Website: www.ascana.net Established in the 1970s, the Arabian Scandinavian Insurance Company became a wholly owned national company in 1985. With more than three decades’ presence in the country, ASCANA has notched up an impressive performance track record and established a reputation for integrity, efficiency and consistent reliable service to its vast client base providing various classes of insurance including motor, marine, energy, aviation, engineering, fire and allied risks, personal accident, group life and group medical, in an endeavour to keep pace with the emerging needs and to provide best protection with value-added features and benefits that go beyond policy wordings.

AXA Insurance Gulf Contact Person: Alexis De Beauregard, Chief Officer – Marketing and Retail Products Address: P.O. Box: 32505, Dubai, UAE Tel: +971 4 429 3939 Fax: +971 4 429 1380 Email:alexis.debeauregard @axa-gulf.com Website: www.axa-gulf.com AXA Insurance Gulf, with a workforce of more than 620 employees, 12 offices region-wide, a substantial customer base and a gross written premium of more than US$430m, is a major international insurer in the Middle East offering a wide range of insurance products and services for corporate and individual customers. It has grown into one of the largest and best known insurers in the Middle East with a winning combination of international expertise and local knowledge. With 12 branches across Bahrain, Oman, the UAE, Saudi Arabia and Qatar, AXA offers support and expert advice to help you, your company and your family choose the best insurance solution. Simply visit our website for detailed information on all our products.

Get on the list Welcome to Policy’s industry directory, which serves as a quick reference guide for insurance and related businesses, reaching the entire region’s insurance community

To ensure your company’s details appear in this section please contact: Pamela Bayram Business Development Manager- Policy Direct Line: +971 4 446 1658, Fax Line: +971 4 390 8737 email: pamela@mediaquestcorp.com Price: US$1,950 per annum (six issues) which includes complete contact information and 50-60 words on your business activities, which can be updated on an issue-by-issue basis

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INDUSTRY DIRECTORY_CLASSIFIeDS Dubai Islamic Insurance & Reinsurance (AMAN) Contact Person: Hussein Mohd. Al Meeza – managing director & CEO, Mohammed Iqbal Mankani – chief operating officer Address: Oud Maitha Road, Gulf Towers, P.O. Box: 157, Dubai, UAE Tel: + 971 4 319 3111 Fax: + 971 4 319 3112 Email: Iqbal.mankani@aman.ae Website: www.aman.ae Aman is one of the largest Islamic Insurance Companies in the Middle East with a capital of AED200m offering all kinds of Shari’a-compliant products. Aman is rated BBB stable by Standard & Poor’s. Aman offers the highest standard of customer service and is the proud winner of the best takaful operator of the year award in 2008 and 2009 by Policy Magazine.

Dubai National Insurance & Reinsurance PSC Contact Person: Morten Holm General Manager Address: 7th floor, Dubai National Insurance Bldg, near Deira City Centre, P.O. Box: 1806, Dubai, UAE Tel: +971 4 295 6700 Fax: +971 4 295 6711 Email: mails@dnirc.com Website: www.dnirc.com DNIRC is a public shareholding company established in 1992, with a paid-up capital of AED100m and is one of the leading national insurers offering its products and services to prestigious clients from different sectors throughout the UAE. DNIRC provides insurance protection on all classes of risks, such as property, casualty, engineering, marine, motor and life and health, besides bankers blanket bond insurance, professional indemnity, sabotage and terrorism and haulier’s/freight forwarder’s liability.

Euler Hermes Credit Insurance Company Contact Person: Shan Aboo, Business Development Manager Address: P.O. Box: 183957, Dubai, UAE Tel: +971 4 266 3083 Mob: +971 50 900 1072 Fax: +971 4 266 7093 Email: Shan.aboo@eulerhermes com Website: www.eulerhermes.com/uae Euler Hermes is the world’s premiercredit insurer, offering solu-

tions for the management of trade receivables, from credit insurance and financing of trade receivables to bonding and guarantees. With 6, 182 staff worldwide in more than 50 countries on five continents and insuring about 57,000 clients. Having a market share of 36 per cent and with more than 800 billion euros of business transactions protected, Euler Hermes offers a complete range of services for the management of customer receivables. The group posted a consolidated turnover of 2.17 billion Euros in 2008. Euler Hermes, a subsidiary of AGFand a member of Allianz, is listed on Euronext Paris. The group and its principal credit insurance subsidiaries are rated AA- by Standard & Poor’s. Euler Hermes credit insurance is working under the licence of Alliance Insurance PSC.

Green Crescent Insurance Company Contact Person: Kathy Hyde Address: Abu Dhabi P.O. Box: 63323 Tel: +971 2 445 8699 Fax: +971 2 445 8717 Dubai P.O. Box: 505152 Tel: +971 4 439 1400 Fax: +971 4 439 1411 Email: info@green-crescent.com Website: www.green-crescent.com Toll free: 800 42 GCIC (4242) Green Crescent Insurance Company was founded in 2008 as a PJSC funded by a paid-up capital of AED250m. By introducing professional, affordable, and high-calibre healthcare services to its clients, Green Crescent is bringing “health” back into “health insurance”. We currently operate in the UAE, providing tailormade health insurance solutions to groups and corporate clients. What we offer is a commitment to providing world-class healthcare on a global basis by using product innovations, technology, and a network of leading healthcare providers. At Green Crescent, we believe that an ounce of prevention is better than a pound of cure. So along with our commitment to quality, we plan to offer numerous awareness and prevention campaigns to promote a healthier, happier ‘you’.

National Health Insurance Company-Daman Contact Person: Diana Al Sakka Address: Daman Central Branch, Airport Road, Abu Dhabi Tel: +971 2 417 3609 Fax: +971 2 614 5564 Email: Diana.sakka@damanhealth.ae Website: www.damanhealth.ae The National Health Insurance Company – Daman, was established on May 1, 2006. Today it is the region’s leading health insurance company, providing healthcare solutions to more than 1,100,000 customers in the UAE via the largest network of private hospitals and pharmacies. Daman’s health insurance plans offer international standard healthcare insurance cover.

Oman Insurance Company (PSC) Contact Person: Duaa Issam Dablan Address: 7th and 8th floor W-5, Dubai Airport Free Zone (DAFZA) P.O. Box: 5209, Dubai, UAE Tel: +971 4 233 7777 Fax: +971 4 233 7775 Email: duaa@tameen.ae Website: www.oicem.com Oman Insurance Company, ranked among the best insurance companies in the Arab world, is UAE-based and has been serving customers for more than three decades through a strong team of 300-plus employees. It covers all kinds of risks on property, casualty, engineering, motor, marine, life and health. It specialises in tailoring insurance solutions to desired requirements. Interactively rated A- by Standard & Poor’s, Oman Insurance is also a winner of several business excellence awards and certifications.

Qatar Insurance Co - QIC Contact Person: Ali Al Mannai, chief executive officer Alexander, chief operating officer Address: P.O. Box: 666, Doha, Qatar Tel: +974 4 962 222 Fax: +974 4 831 569 Email: qatarins@qic.com.qa Website: www.qatarinsurance.com Founded by an Emiri decree in 1964, QIC is an industry pioneer in the GCC with presence in Qatar, the UAE, Oman, Kuwait and also in Malta. With the State of Qatar being the single

largest shareholder, QIC stands out for its financial strength and quality of service. Its position as a prime insurer today is the result of not only the experience gained over four decades, but also of standards reached including various ISO certifications and an “A” rating from S&P, accredited to its own operations and kept all throughout the financial crisis.

QIC International LLC Contact Person: Ian Sangster Address: P.O. Box 12713, Doha, Qatar Tel: +974 4 910 510 Fax: +974 4 910 515 Email: isangster@qici.com.qa QIC International LLC is the international operating company of Qatar Insurance Company, having been incorporated within the Qatar Financial Centre, (licence no 00034). QIC International LLC owns and manages all of the group operations outside Qatar, these being branches, subsidiary and associate companies.

RSA Contact Person: Nilanjana Ghosh Address: P.O. Box: 28648, Dubai, UAE Tel: (Tollfree) 800 RSA +971 4 302 9800 Fax: +971 4 334 8861 Email: Nilanjana.Ghosh@ae.rsagroup.com

Website: www.rsagroup.ae www.rsadirect.ae With an almost 300-year heritage, RSA is one of the world’s leading multinational quoted insurance groups. It has the capability to write business in more than 130 countries and has major operations in the UK, Scandinavia, Canada, Ireland, Latin America, Asia and the Middle East. Focusing on general insurance, RSA has around 22,000 employees. With a strong track record of delivering quality, innovative solutions and underwriting and claims expertise, RSA provides enhanced operational efficiency, controls and customer experience. For three years in succession, RSA has been awarded Middle East Insurer of the Year at the Policy Middle East Insurance Awards.

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INDUSTRY DIRECTORY_CLASSIFIeDS Saudi Pearl Insurance Co EC / Buruj Cooperative Insurance Co. Contact Person: Samer Kanj Address: Dhabab Street, Canary Center, Riyadh - KSA Tel: +966 1 293 5265 / 5264 Fax: +966 1 217 2350 Email: samer@saudipearlins.com Website: www.burujinsurance.com Buruj Cooperative Insurance Company is the continuance of Saudi Pearl Insurance Company which has been operating in the Kingdom of Saudi Arabia since 1979 and underwriting all lines of insurance business. Saudi Pearl and its parent company, Gulf Insurance KSC, now partner with several local and foreign business and individual investors to form Buruj. With a paid-up capital of SAR130,000,000, a wealth of experience and a strong reputation, Buruj now positions itself to deliver its mission. The Gulf Insurance Co of Kuwait group, which is the largest insurer in Kuwait includes: - Gulf Insurance Co KSC in Kuwait. - Saudi Pearl Insurance Co EC in Saudi Arabia - Fajr Al-Gulf Insurance Co. in Lebanon - Arab Misr Insurance Group (AMIG) in Egypt - Syrian Kuwait Insurance Co. (SKIC) Syria - Arab Orient Insurance Co. (AOIC) in Jordan Total premium as of December 2009 is US$336,376,000. Saudi Pearl has been operating in the Kingdom since 1979 and has enjoyed growth and profitability ever since.

that is associated with some of the premier reinsurance organisations. UIC covers a full range of classes including: property, engineering, general accidents, marine, motor and medical. With branches spread all across the UAE, UIC makes it easy for you to seek expert advice and secure the best insurance solutions for your company.

Warba Insurance Company K.S.C. Contact Person: Tawfik Shamlan Al Bahar Address: Warba Tower, Ahmad Al Jaber Street, P.O. Box: 24282, Safat 13103, Kuwait Tel: + 965 1 80 81 81, +965 229 14041 Fax: +965 2 245 1974, +965 2 246 6131 Email: warba@warbaonline.com Website: www.warbaonline.com Warba has enjoyed three decades of success, employing highest number of professionals. Warba’s premium for 2009 is US$70m; Share Capital is US$60m (second largest in Kuwait) and shareholders equity is US$140m. Warba’s joint venture partners are LIC (int’l) Bahrain, SLIP (Pakistan), InterGlobal (UK)’ IHIBupa (UK), AAA Warranty Services, LIC Housing Finance (India), Ceylinco (Sri Lanka) & Generali to offer services to expatriates and introduce innovative products. Warba is in the process of establishing insurance companies in other GCC countries. Standard & Poor’s awarded rating of “BBB”pi. Warba is ISO 9001:2008 certified company.

Insurance Life

United Insurance Company Contact Person: Sharika Nair Address: P.O. Box: 1888, Nasser Lootah Building, Deira, Dubai, UAE Tel: +971 4 222 2440, 800-842(UIC) Fax: +971 4 222 8668 Email: uic@emirates.net.ae Website: www.uic.co.ae United Insurance Company has been serving the UAE insurance market for more than 30 years. Driven by professionals with integrity and commitment to quality service, UIC is an ISO 9001:2008-certified company 58 I

Friends Provident International Limited ME Contact Person: Matthew Waterfield Address: P.O. Box: 215113, Dubai, UAE Tel: +971 4 299 5910 Fax: +971 4 299 5930 Email: dubaiservicing fpinternational.com Website: www.fpinternational.com

Friends Provident International Limited (Middle East) is a branch office of Friends Provident International. Established in the Isle of Man in 1978, Friends Provident International (FPI) is one of the oldest and most respected offshore life assurance companies in the world. FPI provides savings, protection and lump sum products and a comprehensive range of funds, ideally suited to the international marketplace. The product range is award-winning and, within this, offers a comprehensive selection of single and regular premium products designed to meet all investment and financial needs.

Insurance Portals’

Qatarlyst Contact Person: James Sutherland, CEO Address: QIS LLC, T/A Qatarlyst. Qatar Financial Centre, P.O. Box: 23245 Doha, Qatar Tel: +974 496 8300/1 Email: enquiries@qatarlyst.com Website: www.qatarlyst.com Qatarlyst’s vision is to bring unrivalled efficiency, control and market access to its online community of brokers and underwriters. At a personal level Qatarlyst can provide very significant time savings in the placement and acceptance of business and at a corporate level it provides enhanced efficiency, control, reporting and transparency. Underwriters and brokers benefit from an ‘at a glance’ desk top with the ability to create and respond easily and quickly to submissions with acceptance, requests for further information, counter offers and multiple quotes, all whilst keeping track of the overall negotiation process and enjoying real time reporting and control functions. Qatarlyst is accessible through either a simple log on accessed through any internet browser and is capable of integration with in house systems through ACORD compliant XML messaging.

IT Support Solutions

3i Infotech Contact Person: Shirin Ali Address: P.O. Box: 9109, 301, Bldg No-1, Dubai Internet City, Dubai, UAE Tel: +971 4 391 4900 Fax: +917 4 391 8773 Email: Shirin.ali@3i-infotech.com Website : www.3i-infotech.com 3i Infotech is a global information technology company providing software products and IT services for the Insurance, banking, investment management, capital markets, manufacturing, retail and distribution and government verticals. 3i Infotech is the third largest EAS provider in the Mena region* with more than 100 insurance companies globally as our customers. *(Source: IDC Report 2007)

ARIMA Insurance Software WLL Contact Person: Simon Cox Address: P.O. Box: 15642, ARIG House, Manama, Kingdom of Bahrain Tel: +973 17 544 111 Fax: +973 17 918 111 Email: arima@arima.com.bh Website: www.arima.com ARIMA is a wholly owned subsidiary of the Arab Insurance Group (ARIG), based in Bahrain, specialising in insurance software. Products include private medical insurance, general insurance, life insurance and a reinsurance management system. Takaful-based versions of the products are available.

Agile Financial Technologies Contact Person: Shefali Khera Address: PO Box-503007, 808-A, Business Central Towers, Tecom, Dubai Internet City, Dubai, UAE Tel: +971 4 433 1825 Fax: +971 4 435 5709 Email: info@agile-ft.com Website: www.agile-ft.com Agile Financial Technologies is a leading technology solution provider that offers software, technology services, business and knowledge process

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INDUSTRY DIRECTORY_CLASSIFIeDS outsourcing services. Agile FT’s portfolio of software products cover Policy Administration/Underwriting, Claims, Re-insurance, Accounting and Investment Management for General & Life Insurance, Takaful, Health Insurance, Insurance Brokers and BancAssurance divisions of banks.

the regional healthcare and medical insurance payers and providers.

Rating Agencies

ASSURETECH BUSINESS SOLUTIONS PVT. LTD. Technopark, Trivandrum, India Contact Person: Salim M.K Mob: +91-9645-9645-25 Phone: +91-471-3013440 Fax: +91-471-3013439 Email: salim@assuretech.in Website: www.assuretech.in ASSURETECH - The Insurance software Company - provides world class software solutions and services to the insurance Industry, focusing on the Middle East and Africa markets. The core team in ASSURETECH has more than 15 years of experience in designing, developing, implementing and supporting large insurance applications in the Middle East, Africa, CIS countries and India. Within the first year of its operation, ASSURETECH added 15 prestigious insurance companies in the Middle East to its clientele. ASSURETECH brings a fresh and innovative approach to product development, implementation and consulting services. As a specialist in the Insurance domain, we offer a range of new generation software products and services that manage the entire operations of insurance companies Exceptional functional and technical expertise, coupled with extensive industry knowledge, makes ASSURETECH the ideal choice for an Insurance firm to manage their software system and technology requirements

Waseel Asp Ltd Contact Person: Riyadh M Bajodah Address: P.O. Box: 301370, Riyadh 11372 Tel: +966 1 216 8373 Fax: +966 1 216 8381 Email: info@waseel.com Website: www.waseel.com Waseel was established as the first medical insurance application service provider in the Gulf. It operates a highly secure Internetbased “business-to-business” portal offering IT and e-business solutions to

AM Best Europe Ltd Contact Person: Clive Thursby Address: Sixth floor, 12 Arthur Street, London, EC4R 9AB Tel: +44 20 7397 0279 Fax: +44 20 7626 6265 Email: Clive.Thursby@ambest.com Website: www.ambest.com AM Best is the leading provider of ratings, news, data and financial information on the global insurance industry. Best’s Ratings, recognised worldwide as the benchmark for assessing insurer’s financial strength, reflect knowledge of the insurance industry. AM Best’s London offices focuses on ratings, news, data and information covering Europe, the Middle East and Africa.

Reinsurance

Assicurazioni Generali SPA Contact Person: Bruno Bertucci Address: Suite 6-7, Building 10, The Gate Village, DIFC, Dubai, UAE Tel: +971 4 372 8700/1/2 Fax: +971 4 323 0889 Email: lydia.agassi@generalimiddleeast.com Website: www.generali.com The Generali Group is the third insurance group in Europe and the 30th largest company in the fortune 500 international ranking with a 2007 total premium income of more than 64 billion euros. It’s present in 40 countries, has 54 million clients worldwide and has 66,000 employees. It has assets worth more than 340 billion Euros.

Crescent Global Contact Person: Jamil R Bahou Address: P.O. Box: 1719 Crescent House, Villa 373, Rd 3610, Blk 336, Adliyah, Manama, Bahrain Tel: +973 1 771 3838 Fax: +973 1 771 7166 Email: reinsure@crescentglobal.com Website: www.crescentglobal.com Crescent Global is an insurance and reinsurance broker at Lloyd’s, providing service to the Middle East, Asian and African reinsurance market place. Key areas of strength include all forms of political risks, property, engineering, professional and specialist liabilities, marine, power and utilities, life and personal accident on both a facultative and treaty basis. Crescent Global is head-quartered in the Kingdom of Bahrain, with offices in London, Beirut, and Riyadh. Apart from being the first broker in Asia to be accredited by Lloyd’s of London, Crescent is also an HLA Global network member of the Wells Fargo insurance services international network.

General Insurance Corporation of India (GIC Re) Contact Person: D.R. Arya Address: P.O. Box: 119156 Room No 202, RHS Building Khalid Bin Waleed Road, Bur Dubai, UAE Tel: +971 4 393 6611/2645 Fax: +971 4 393 6672 Email: d.arya@gicdubai.com response@gicdubai.com Website: www.gicofindia.in General Insurance Corporation of India (GIC Re) provides reinsurance capacity on a treaty and facultative basis, in both domestic and international markets, for risks ranging from simple to complex. In a short span of its focused international strategy, GIC Re has established itself as reliable reinsurance partner in neighboring SAARC, south-east Asia, the Middle East and African region. In order to strengthen its mission of emerging as an effective reinsurance solutions partner for the AfroAsian region, GIC Re operates through offices in London and Moscow.

To serve the Middle East markets, GIC Re has started operating from Dubai. A strong asset base and large reserves is a pre-requisite for insurance and reinsurance business. With its total asset base of US$6.44 billion and net worth of US$1.1bn, GIC is rated A – Excellent by AM Best.

Q-Re LLC Contact Person: Dermot P. DIck Address: 10th Flr, Al Fardan Office Tower, P.O. Box: 24938, Doha, Qatar Tel: +974 491 0505 Fax: +974 491 0515 Email: dermot.dick@q-re.com.qa Website: www.q-re.com.qa Q-Re the first professional reinsurance company to be established in Qatar and the first authorised to operate in The Qatar Financial Center. It is an independent and specialist reinsurance company focusing on our core competencies of energy, marine, engineering and property business both facultative and treaty within Afro-Asia region.

Trust International Insurance & Reinsurance Co. B.S.C. © Trust Re. Address: P.O.Box 10002 Diplomatic Area, Manama, Kingdom of Bahrain Tel: +973 17 517 171 Fax: +973 17 531 586 Email: mail@trustgroup.net.bh Website: www.trustgroup.net Trust Re incorporated in 1989 specialized in non-life treaty and facultative business. 2008’s financial highlights revealed a Gross Premium $214.5m, underwriting profit 20%, total assets $539.4m, paid-up capital $100m and 11.5%ROE.Trust Re serves in Afro-Asian countries, leading in Oil and Gas and is rated A- (AM Best) and BBB+Stable (S&P)

To ensure your company’s details appear in this section please email: pamela@mediaquestcorp.com

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INDUSTRY DIRECTORY_CLASSIFIeDS

Run Off Management

Global Reinsurance Consultants Ltd UK Head Office Contact Person: Peter Matthews Tel: +44 1424 776 110 Fax: +44 1424 775 971 Email: peter.matthews globalreconsultants.co.uk Middle East Contact Person: Nada Al Khayer Tel: +963 11 611 8731 Fax: +96311 611 5425 Email: nada@globalreconsultants.co.uk

Website: www.globalreconsultants.co.uk Global Re has an enviable reputation as one of the leading independent consultancy firms serving the insurance and reinsurance markets worldwide. Their office in Damascus provides a vital presence in the Middle East. With almost 70 clients they have a unique and proven ability to supply the most effective exit strategy to legacy business either by managing portfolios or purchasing them through their sister company Global Re Finality Solutions. Global Re also has the flexibility to handle projects on a contingency basis and provide a comprehensive range of other services such as credit control, commutations, static claim reviews, audits and inspections.

Takaful Companies

Methaq Takaful Insurance Company Contact Person: Abdullah Al Maamarri,Managing Director – Khalil Ghneim, COO Address: Abu Dhabi - Al Nahyan Compound Next to One to One Hotel, Villa No. 312B P.O. Box 32774 Tel: +971 2 656 5333 Fax: +971 2 656 5 334 60 I

Email: info@methaq.ae Website: www.methaq.ae Methaq is a registered and licensed General Takaful Company in the UAE. It takes the form of a UAE public shareholders company. With HQ being in Abu Dhabi, and branches in Dubai and Mirfa, Methaq offers Individuals and Corporations a complete range of high quality, flexible, integrated, Shariah-compliant insurance products & services. .

Noor Takaful Contact Person: Parvaiz Siddiq (CEO) Address: Business Central Towers, Tower A, 35th Floor, Sheikh Zayed Road, P.O. Box: 48883, Dubai, UAE Tel: +971 4 426 8400 Fax: +971 4 423 0845 Email: info@noortakaful.com Website: www.noortakaful.com Noor Takaful, the Islamic insurance arm of Noor Investment Group, was founded on the principles of shared responsibility and mutual cooperation. A shari’a-compliant company, Noor Takaful is ideally positioned to play a central role in satisfying the growing demand for globally portable, affordable insurance products in the UAE. Dedicated to consistently delivering exceptional customer experience, Noor Takaful was named the ‘Best Takaful Operator’ for 2009 at the 4th Islamic Business and Finance Awards. Overseen by its distinguished Fatwa & Shari’a Supervisory Board (FSSB), Noor Takaful is licensed by both the Emirates Securities and Commodities Authority (ESCA) and the Emirates Insurance Authority.

Solidarity Saudi Takaful Company Contact Person: Saleh Al Omair Address: P.O. Box: 85770 Riyadh 11612 Saudi Arabia Tel: + 966 1 279 8999 Fax: + 966 1 201 2999 Email: info@sstc.com.sa Website: www.sstc.com.sa Solidarity Saudi Takaful Company is a joint stock company with a paid up capital of SAR555m and will transact all lines of business. Solidarity Saudi Takaful Company is headquartered in Riyadh, Saudi Arabia and will have branches in all major cities.

Takafulhouse PJSC Contact Person: Paul Joseph Manachery VP – Commercial Lines Profit Center Rehan Khan AVP – Personal Lines Profit Center. Address: P.O. Box: 235353، Dubai, UAE Tel: 800 - TAKAFUL Fax: +971 4 422 6090 Email: info@takafulhouse.ae Website: www.takafulhouse.ae Takafulhouse offers takaful products and services designed to meet your specific insurance needs in order to protect and secure your hardearned assets and businesses. Takafulhouse is managed by professionals with a wealth of experience and passion for business. Our insurance contracts are shari’a-compliant, approved by the company’s fatwa and sharia supervisory board.

Third-Party Administrators

AhlanCare – MCB LLC Contact Person: Anil Nair Address: P.O. Box: 95158 Dubai, UAE Tel:+971 4 299 0977 Fax: +971 4 299 0979 Email: anil@ahlancare.com Website: www.ahlancare.com Ahlancare is the only web- based facilitator for provision of outpatient cover. It is one of its kind in the Middle East and the Indian subcontinent. It brings together insurance companies, healthcare providers and the corporates.

Takaful International Contact persons: Younis Jamal Al Sayed, (Chief Executive Officer), Essam Al Ansari (General Manager), Aziz Al Othman (Deputy General Manager). Address: P.O. Box: 3230, Takaful Building 680, Road 2811, Seed district 428, Manama, Kingdom of Bahrain Tel: +973 17 565 656 Fax: +973 17 582 688 Email: takaful@takafulweb.com Website: www.takaful.bh We are an insurance company established in 1989 in the Kingdom of Bahrain. With authorised share capital of US$53m and paid-up of US$13m. The major shareholders of the company include Investors’ Bank, International Investment Group, Gulf Monetary Group, Ministry of Justice and Islamic Affairs and Bahrain Islamic Bank. Our company has been listed on the Bahrain Stock Exchange since 1997.

eKlaim (Pace Technology) Contact Person: Anil Nair Address: P.O. Box: No 86504 Tel: +971 4 299 1848 Fax: +971 4 299 1849 Email: info@eklaim.com Website: www.eklaim.com eKlaim, a third-party administrator, attempts to offer clients the best service. Our goal is to take the burden of managing claims, eligibility and customer service away from the client so that they can focus on managing their plan and controlling costs.

Foster Net TPA (LLC) Contact: Sunil Menon Address: P O Box: 116393 Office No. 502/3, Al Nasr Plaza Bldg. Next to Al Nasr Club, Our Metha, Dubai, UAE Tel: + 971 4 357 3444 Fax: + 971 4 357 3535 Email: sunilmenon@fosternet,com Website: www.fosternet.com Foster Net is a leading TPA company in UAE, focused on providing high-value health benefits services to the customers. Our mission is to demonstrate an exceptional commitment to cost-effective benefits administration. We look forward to strategically expand to the GCC and MENA region soon.

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INDUSTRY DIRECTORY_CLASSIFIeDS MedNet UAE FZ LLC Contact Person: Dr Sukumara Prakash General Manager Address: P.O. Box: 500259 Dubai Internet City, Dubai, UAE Tel: + 971 4 390 0710 Fax: + 971 4 390 8600 Email: info@mednet-uae.com Website: www.mednet-uae.com MedNet has over a decade of local and International expertise in health insurance and managed care. Our services to insurance companies include medical underwriting, network management, claims and cost management, data management, product design and pricing ensuring high performance standards. We provide specialised healthcare services through free access plans and direct billing arrangements to our cardholders. MedNet means “Challenge for Better Healthcare”.

Fax: +971 4 269 7993 Email: nextcare@emirates.ae Website: www.nextcarehealth.com NEXtCARE specialises in providing complete health insurance management, third party administration services to insurers and other payers of healthcare. Since early 2007 NEXtCARE has been a member of the Allianz group the worldleading financial and insurance services provider. The company’s UAEs strength is coupled to regional leadership where NEXtCARE administrates more than 750,000 insured members from insurance companies, mutual funds and self-funded schemes. It has 400 employees, in the UAE, Lebanon, KSA, Egypt and The Kingdom of Bahrain.

NAS Administration Services LLC

training

Contact Person: Dr Sameena Majid Address: P.O. Box: 44505,Abu Dhabi, UAE

Tel: + 971 2 694 0800 Fax: + 971 2 671 7550 Email: info@nas.ae Website: www.nas.ae NAS is a leading TPA company offering local and international healthcare insurers a wide range of services supported by top-notch expertise, a comprehensive network of healthcare providers across the GCC and a sophisticated IT solution. NAS has established its sterling reputation in the industry for its highest standards of quality, professionalism and innovative healthcare solutions.

Neuron LLC Contact Person: Peter Hogg Chief Executive Officer Switchboard: +971 4 399 6779 Direct Tel: +971 4 382 3777 Direct Fax: +971 4 382 3666 E-mail: peter.hogg@neuron.ae Website: www@neuron.ae Neuron provides administration services. Its main line is medical, but it also handles warranty, credit card, travel, mortgage life and pet plans.

NEXtCARE (AGHS LLC) Contact Person: Christian Gregorowicz Address: P.O. Box: 80864, Dubai, UAE Tel: +971 4 605 6700

BIBF Contact Person: Mr. Husain Al Ajmi, P.O. Box: 20525, Manama, Bahrain Address: Building 1456, Road 4034 Block 340, Juffair Tel: +973 1781 5559 Fax: +973 1772 9928 Email: infodesk@bibf.com Website: www.bibf.com The Center for Insurance at BIBF is dedicated to the advancement of insurance as a professional service in the Middle East region, providing world-class professional learning opportunities that improve insurance performance. We work closely with our customers to deliver tailormade packages that help their staff achieve corporate goals. Whether our clients seek to improve the quality of their service or increase revenues, we can provide solutions. Over the last two decades, the Center for Insurance at BIBF has played a significant role in developing insurance human capital in region and is today, the largest specialized insurance training and professional qualifications provider in the Middle East. In order to capitalize on the growing demand to qualify the insurance personnel in the region, BIBF

and the Chartered Insurance Institute (CII) have entered into strategic partnership towards adding professional advantage for insurance people. Commencing from the minimum standard qualifications, all of BIBF insurance certificate programs, diploma programs and professional qualifications are accredited by the CII, which is unique to the region. Furthermore, the center’s professional activities have earned BIBF the membership of the Institute for Global Insurance Education (IGIE), which is comprised of selected independent international insurance institutes worldwide.

Continental Advisory FZE Contact Person: Swati Prabhudesai Address: P.O. Box: 26588, Dubai, UAE Tel.: + 971 4 335 3433 Fax: +971 4 335 2553 Email: swati@continental-intl.com Training and development is a key to any successful business model. At Continental Advisory we provide customized training solutions for the insurance industry; specializing in Bancassurance training. Working together with your sales and operations team, we provide training in various aspects of basic need analysis, soft selling skills, insurance products, client servicing, documentation and processes. We are uniquely equipped to provide know-how, infrastructure and support required to take care of all functions of insurance training. Our professional knowledge stems from 30 years of industry experience enabling us to assess and unleash the potential of the sales force through training. We cater to entire Middle East with our primary focus on UAE and we have dedicated ourselves to providing quality training solutions with dependable and value added services.

Gulf Insurance Institute (GII) Contact Persons: Leanne Abela (Registrar), Mohd Thamer (Marketing) PO Box: 75708, Manama, Bahrain Address: 3rd Floor, NOC Building, Amwaj Islands, Bahrain Tel: +973 16 030 303 Fax: +973 16 030 304 Email: info@giionline.net Website: www.giionline.net

The Gulf insurance Institute is the leading organisation dedicated to provide learning, sustain development and reward achievement to professionals engaged in conventional and Islamic insurance practice, risk management and related financial services in the Middle East. If you are working in the insurance, risk management and financial planning services industry in our region, then GII provides you with your path leading to professional qualifications and recognition by employers and your peers enhancing your potential and opportunities for a successful career. If you are an organisation that employs insurance staff or in some way you are concerned with the development of insurance, risk management, and financial planning personnel, the Gulf Insurance Institute is the partner who can help you achieve your objectives and stay in the lead with professionally trained human resources.

Get on the list Welcome to Policy’s industry directory, which serves as a quick reference guide for insurance and related businesses, reaching the entire region’s insurance community

To ensure your company’s details appear in this section please contact: Pamela Bayram Business Development Manager- Policy Direct Line: +971 4 446 1658, Fax Line: +971 4 390 8737 email: pamela@mediaquestcorp.com Price: US$1,950 per annum (six issues) which includes complete contact information and 50-60 words on your business activities, which can be updated on an issue-by-issue basis

To ensure your company’s details appear in this section please email: pamela@mediaquestcorp.com

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11/22/10 11:43 AM


Bogus Random statistics and a look at the lighter side of the news

1

million US dollars The amount Hollywood star Betty Grable insured her legs for

1.5

million US dollars The amount Rolling Stones guitarist Keith Richards’ hand was insured for

301 the mane issue The long, curly hair that sticks out of National Football League player Troy Polamalu’s helmet has been insured by a shampoo company for US$1m. Polamalu, a defender for the Pittsburgh Steelers, has been tackled at least once by his distinctive 3ft-long (1m) hair. Shampoo maker Procter & Gamble took out the policy with Lloyd’s of London; Polamalu’s trademark hair has won him sponsorship deals for Procter & Gamble’s brands in the US. In 2006 he was grabbed by the Kansas City Chiefs’ Larry Johnson and pulled down by his hair as he was running for a touchdown. Polamalu, 29, is Samoan by descent and says he has not cut his hair since 2000. Long hair has become fashionable in the NFL in recent years, and an estimated 10 per cent of players now don long locks. Most are defenders, who generally do not get into positions where they could be tackled by their hair. Commentators and fans have been debating the fashion for several years. While it is not against the rules to pull someone down by their hair, in 2008 the NFL’s governing body considered making new rules requiring long hair to be kept under helmets. The suggestion was rejected. 62 I

million US dollars The amount British comedian Ken Dodd’s teeth were insured for

38

million US dollars The amount dancer Michael Flatley’s legs are insured for

Source: BBC News

Bizarre travel claims Monkey Business This butterwouldn’t-melt-intheir-mouth duo caused mayhem in Malaysia recently. Following a romantic night out, a couple returned to their chalet to find their underwear, clothing and belongings strewn across the resort and neighbouring rainforest. Fortunately their insurer paid their claim. Sting in the tale A careless holidaymaker paid a painful price when he dropped his wallet down a drain in Natanya, Israel. The Briton’s claim wasn’t for his cash or credit cards though, it was for hospital treatment. Reaching down the drain he was subsequently stung by a poisonous scorpion. Luckily his travel insurance covered the cost of the treatment. Unhappy campers A family had a shock when on a camping trip in Wales a parachutist missed his target, landing on their camping equipment, destroying it. The family weren’t covered for accidental damage, so their insurer did not reimburse them. Holy smoke A British couple’s idyllic wedding soon took a turn for the worse when the bride’s dress caught alight from a brick of coal that fell from the BBQ. The smart-thinking groom picked up his blazing bride, ran down the beach and threw her into the ocean. Fortunately the couple were able to claim on their policy for their ruined outfits.

I November-December 2010

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Growth? ...supported • Q-Re, Qatar’s only specialist Reinsurance Company•S&P ‘A’ (excellent) Rated•Authorised Share Capital - USD100 million

Focusing on our core strengths in Energy, Marine, Property and Engineering, we cover the Afro-Asian region on both facultative and treaty business.

PO Box 24938, Doha, State of Qatar. Tel: (+974) 491 0505, Fax: (+974) 491 0515

At GulfRe we strongly believe in the value and the development of our local markets. That’s why we focus all our experience and expertise to support our clients in growing their business. Profitably.

Simplifying Reinsurance

www.q-re.com.qa Q - Quality R - Reliability E - Excellence Q-Re LLC, S&P ‘A’ Rated and Incorporated in Qatar Financial Centre - License No.117

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Gulf Reinsurance Limited | P.O. Box 506766 | Dubai, UAE | t: +971 4 382 5700 | f: +971 4 382 5777 | www.gulfre.com Regulated by the DFSA

11/23/10 4:56 PM


Issue 06 06 ||| Issue

”We had to move this 700-tonne component more than 600 kilometres. Scores of risks, but Zurich made us feel confident we were well protected.”

32

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November/December ll 2010 2010 November/December

Herbert Peters, Managing Director, Sasol-Huntsman, Moers, Germany

Volume Volume Volume07 07 07Issue Issue Issue06 06 06 November/December November/December November/December2010 2010 2010

www.policy.ae www.policy.ae www.policy.ae

The The Voice Voice of of Middle Middle easT easT insurance insurance Integrated insurance solutions for even the most specialized projects. We provided Sasol-Huntsman, one of the largest producers of maleic anhydride in Europe, with an integrated insurance and risk engineering solution to address the risks associated with moving a 700-tonne factory component across Germany. By ensuring the necessary precautions were taken and providing coverage for the entire journey, everyone was breathing easy. It’s an example of how Zurich HelpPoint delivers the help businesses need when it matters most. To learn more about this case, visit www.zurich.com/risks Brighter days ahead? Brighter Brighter days days ahead? ahead?

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AAAMediaquestcorp Mediaquestcorp MediaquestcorpPublication Publication Publication

Zurich Insurance Company Limited (DIFC branch) is registered in Dubai, UAE. Registration number 0840. Registered Office: Dubai International Financial Centre, The Gate Building, East Wing, Level 6. Regulated by the Dubai Financial Services Authority. Telephone: +971 4 363 4444. Zurich Insurance Company Limited (Bahrain branch) is licenced by the Central Bank of Bahrain (CBB) and is registered in Kingdom of Bahrain under Commercial Registration No. 74082. Registered Office: 27th Floor Almoayyed Tower, Seef District, P.O. Box 11308, Kingdom of Bahrain. Telephone: +973 1756 3100. Not all products available in all jurisdictions. www.zurich.com

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11/11/2010 8:25:48 AM

18. 18. Takaful Takaful The Thenew new'Regulation' 'Regulation'

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Registered Registered Registeredwith with withDubai Dubai DubaiMedia Media MediaCity City City

11/22/10 11/22/10 11/22/10 11:43 11:43 AM AM 11/23/1011:43 4:56AM PM


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