MENAIR May 2013 www.insurancemena.com
NEWS I NSID E
06 Reinsurance pool for reﬁners using Iranian oil
Focus on Indian plan for a fund of up to INR20bn ($366.8m)
06 Industry brims with conﬁdence Economic growth set to remain powerful driver
07 Al Koot to become a reinsurer Al Koot’s background lies in captive insurance
08 Oman’s ﬁercely competitive market New takaful licensing regulation expected to generate additional competition in Oman
Core lines in Iraq appear set for growth 16
Flying the ﬂag for risk management Common standards are needed for holistic risk management 26
Positive energy Mena’s energy market looks set for continued growth 20
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PAGEANT MEDIA Charlie Kerr Chief executive
Contributors Mahesh Mistry and Yvette Essen, A.M. Best * William Wakeham, AAIB Insurance Brokers * Jamal Asfour, Asia Insurance Company * Gregory Irgin, UrbaCon General Contracting in Qatar * Jonathan Biles, Iraq Gate * Robert Nijhout, ICISA * Massimo Falcioni, Euler Hermes * Kevin Willis, Standard& Poor’s * Dermot Dick, Emirates Insurance * Omar Gemei, Marsh * Rainer Lehner, Asia Capital Reinsurance Group * Nadjib Bouzeboudjen, Trust Re * Giles Hussey, Swiss Re Corporate Solutions * Christoph Schwager, EADS * Khalil Eid, QBE’s Dubai branch * Garry Muriwai, Bahrain Institute of Banking and Finance
ick the Mena insurance market most poised for growth over the next ﬁve years and Iraq is likely to feature very highly, if not top the list. And for good reasons. That’s why this month’s issue drills down into the opportunities and challenges facing the Iraqi insurance market, and why building insurance awareness above all is vital for the market. One major concern raised during the research for the article is the lack of properly registered insurers or brokers in the country. This needs to be clamped down on urgently if further public trust in the industry is not to be eroded. Improving risk management is a major issue for businesses across Mena, like other parts of the world, and a proﬁle of Christoph Schwager, chief risk officer at aircraft manufacturer EADS, on page 26 is insightful. Schwager makes the point that with risk management you are always on a journey, and it’s a continuous evolution, as well as the need for common standards and good holistic risk management. Above all, Schwager stresses the need for risk managers to display an entrepreneurial mindset and show the value that risk management brings to an organisation. Finally, the release of the Mena Insurance Barometer, at this year’s MultaQa insurance conference offers a useful assessment of the way forward for the industry. That a majority of senior executives for the survey said they expect Mena insurance premiums to grow faster than the region’s GDP, is of course, very positive. However, the fact that 56% of respondents felt the overall state of insurance regulation in the region to be inadequate, is a pressing concern that the industry needs to tackle in order to achieve its full potential.
Ronan McCaughey Editor
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#51 IN THIS ISSUE NEWS
India plans reinsurance pool for refiners using Iranian oil
Allianz to acquire Yapi Kredi Sigorta
Industry brims with confidence
Al Koot to become a reinsurer
Key new appointment for Zurich
Oman’s fiercely competitive market
16 FEATURES 16 COVER FEATURE Mission possible Core insurance lines in Iraq appear set for growth
REGULARS 13 INSURER RATINGS Insurer ratings in the Mena region from A.M. Best and Standard & Poor’s, plus Ratings Watch
19 Strength in depth Khalil Eid discusses QBE’s strategy in the Middle East 20 LINES Positive energy Mena’s energy market looks set to grow 24 FEATURE Growing appetite Economic expansion boosts environment for trade credit insurance
26 PROFILE Flying the ﬂag Common standards are needed for holistic risk management
Allianz to acquire Turkey's Yapi Kredi Sigorta Allianz is to acquire the property and casualty insurer, Yapi Kredi Sigorta, including its subsidiary Yapı Kredi Emeklilik, the life and pension business. Yapı Kredi Sigorta is the ﬁfth largest property and casualty insurance company in Turkey with total premiums of $682m, according to Allianz. It added that Yapi Kredi Emeklilik holds a top-four position in life insurance with premiums of $115.6m, a pensions business ranked third and assets under management of $1.9bn. Both deals come as Allianz has also agreed a 15-year exclusive distribution agreement with private bank, Yapi Kredi. Allianz said the combination of Allianz Turkey with the Yapi Kredi insurance operations will create the number one non-life insurer, the number two pensions provider and the number three life insurer in Turkey. Under the terms of the agreed transaction, Allianz will acquire Yapi Kredi’s 93.9% shareholding in Yapı Kredi Sigorta for a total net consideration to
India plans reinsurance pool for reﬁners using Iranian oil India reportedly plans to set up a fund of up to INR20bn ($366.8m) to back local insurers in offering cover to reﬁners who process Iranian crude oil. It is said the money will come from the premiums normally paid by insurers for reinsurance cover.
Yapi Kredi of $878.6m. The remaining 6.1% of Yapı Kredi Sigorta is listed on the Istanbul Stock Exchange and will be subject to a mandatory tender offer by Allianz shortly after closing. Yapi Kredi will retain a 20% stake in Yapi Kredi Emeklilik, the life and pension business which is a subsidiary of Yapı Kredi Sigorta, to support the long-term strategic partnership with Allianz. Oliver Bäte, a member of the board of management of Allianz, said: “Turkey is one of the fastest growing insurance markets worldwide, supported by a robust economic outlook and a large, young population of 75 million people.” The Turkish market offers signiﬁcant growth potential for insurance due to low penetration, with premiums at just 1.3% of GDP in Turkey compared to 7.9% for Western Europe and 2.6% for Central and Eastern Europe, according to Allianz. The transaction is expected to close during the second half of 2013 and is subject to regulatory and competition board approvals.
Insurance companies in India have refused insurance cover to reﬁneries processing Iranian oil as they could not get reinsurance from their European counterparts, according to the Hindu Business Line. India, which reportedly relies on imports for 80% of its crude needs, has cut purchases from Iran along with China, South Korea and Japan in order to secure a waiver from Western sanctions aimed at curbing Tehran's nuclear programme. India is said to be Iran's secondlargest buyer, taking around a quarter of its oil exports worth around $1bn a month, while Teh-
ran has slipped to seventh place among New Delhi's suppliers from second in 2011/12. Insurers typically rely on European reinsurance markets to hedge their risk, but EU sanctions have blocked European reinsurers from any involvement in covering shipments of Iranian oil, reportedly prompting India to set up the limited emergency cover. The EU has imposed a ban on imports of crude oil, petroleum products and natural gas from Iran. The prohibition concerns the import, purchase and transport of such products as well as related ﬁnance and insurance. It also means no vessels designed for the transport or storage of oil and petrochemical products may be supplied to Iran.
Industry brims with conﬁdence A total of 68% of senior executives interviewed for the ﬁrst Mena Insurance Barometer survey have said they expect Mena insurance premiums to grow faster than the region’s GDP, despite challenges arising from the Arab Spring and geo-political tensions. The Mena Insurance Barometer survey, which was published by the Qatar Financial Centre (QFC) Authority, involved 35 senior executives from international and regional insurers, reinsurers, and brokers operating in the Mena region. In terms of the key ﬁndings, robust economic growth is anticipated to continue to be the most powerful driver of insurance market growth. When it comes to the industry’s weaknesses, the survey found that high levels of competition and a resulting pressure on technical results, and acquisition costs in
particular, are the most relevant perceived weakness of the Mena insurance marketplace. Despite the ﬁerce competition in the marketplace, only 36% of senior executives said they expect the Mena insurance sector to consolidate over the next 12 months as average levels of capitalisation are solid and family ownership remains a major obstacle to mergers and acquisitions.
Al Koot to become a reinsurer Qatar insurance provider, Al Koot – a subsidiary of Gulf International Services (GIS) – will be turned into a reinsurance company, according to the country’s ﬁnance and economy minister, Yousef Hussain Kamal. Kamal made the statement at the Multaqa insurance conference in Doha on 11 March, without elaborating in detail about the process and timetable to shape the provider into a reinsurer. Al Koot’s background lies in the captive insurance market and it was incorporated in 2003 as a 100% owned captive insurance company for Qatar Petroleum (QP). In 2008, QP decided to set up a petroleum services company and transferred its ownership of its services companies, including Al Koot, Gulf Drilling International and Gulf Helicopters to the new holding company Gulf International Services (GIS). QP also offered 70% of (GIS) to the public through an IPO process, in line with the state privatisation policy. Asked about the timetable to transform Al Koot into a reinsurer, Shashank Srivastava, CEO and board member of the Qatar Financial Centre (QFC) Author-
ity, said that he did not have all the details. Srivastava said: “Watch this space. It is in the process now. The government is keen to move and make this happen.” In a state“Watch this space. ment, GIS conﬁrmed that dis- The government is cussions were keen to move and still in progress make this happen” between Al Koot and Qatar’s government. GIS said a ﬁrm decision regarding the nature of the involvement of Al Koot had yet to be made. GIS said further details would be provided to the Qatar Exchange in due course.
Key new appointment for Zurich Zurich Insurance Group (Zurich) has appointed 37-year-old Jawed Barna, a German citizen, as CEO for Zurich’s global life business in the Middle East and Africa. Barna, previously head of the CEO Office in Europe for Zurich Global Life, succeeds Thorsten Kocherscheidt. His role became effective from 1 April 2013. Barna will report to Mark Hartigan, regional CEO of Zurich’s Global Life business in Asia-Paciﬁc and the Middle East. Commenting on Barna’s appointment, Hartigan said Barna’s leadership skills, strategic thinking and customer orientation, together with a strong focus on delivering business results, make him an ideal candidate to further develop Zurich’s customer and distribution strategy for global life in the region. Barna joined Zurich in 2001 and has held a number of senior roles in sales operations, group audit and change and transformation
programmes within Europe. He holds a degree in Business Administration from the University of Bonn.
Experts remain positive on energy Senior insurance executives are bullish about the Mena energy insurance market. Dermot Dick, chief underwriting officer (international) at Emirates Insurance, said the price of oil is high enough to drive continued infrastructure spending on exploration and production, despite the absence of large numbers of high proﬁle new projects. In terms of the latest trends, Dick explained that upstream/offshore business is less competitive due to there being fewer players in that market, but onshore/downstream is still over-capacitated and competitive. Omar Gemei, vice-president of Marsh’s UAE energy practice, said the major opportunity for the Mena energy insurance market is insuring Arab interests abroad. Gemei said: “Sovereign wealth funds, national oil companies and conglomerates are investing in Europe, North America and the Far East and there will be opportunities for Mena-based energy insurers to underwrite such risks.” According to Nadjib Bouzeboudjen, chartered insurance energy underwriter at Trust Re, Saudi Arabia, UAE, Algeria and Iraq are where the greatest opportunities lie, supported by the amount of investment in the energy sector being put forward by these countries, which he says accounts for more than half the investment for the whole Mena region. Dick identiﬁed Dubai, Kuwait, Abu Dhabi and Qatar as being key areas for opportunities.
Oman’s ﬁercely competitive market Continued growth is forecast for Oman’s insurance market, but new takaful licensing regulation is expected to generate additional competition for an already crowded market, according to a new report by A.M. Best. As with other GCC countries, the report said Omani insurance market has strengthened with gross premiums written (GPW) nearly doubling from OMR144m in 2006 to OMR282m in 2011, albeit from a low premium base. From 2007 to 2010, A.M. Best said GPW annual percentage growth was in double digits, however, its pace declined in 2011 to a more modest 6% rise. Despite this slowdown, the report said: “The Omani insurance market is wellpositioned to grow as revenues from the energy sector continue to ﬁnance infrastructure projects. Oman’s economic growth has increased since 2009, averaging 4% to 5%, with gross domestic product (GDP) expected to rise by 3.9% in 2013.” It added that major construction projects include a regional maritime transit-trading hub and tourist attraction in Duqm. In addition to the insurance market beneﬁting from infrastructure development, medical health care is expanding and is likely to grow further
Insurance awareness week promoted in Bahrain The Bahrain Insurance Association (BIA) has been hosting an insurance awareness week as part of a concerted campaign. This insurance week ran from 21 - 27 March and aimed to educate consumers about the role played by insurance in protecting people’s property and their possessions.
over the short-to-medium term, said the report. Signiﬁcant downside risks for insurance growth include Oman’s slowing economy and the dependence on the state-owned energy sector, according to A.M. Best. The report also noted that as with the other GCC countries, social unrest in the region could present a risk to growth. Despite the low total premium volume, the Omani insurance market is fragmented with 22 active insurers, half of which are local companies. The remainder comprise regional and international companies – including AXA, Zurich and Chartis – with partnerships or branches within the country. The pending introduction of Takaful licensing regulation by the insurance regulator – the Capital Market Authority (CMA) – is likely to create further interest from new entrants, or result in existing companies establishing Takaful windows. While this is seen as a positive regulatory development, A.M. Best expects an inﬂux of fresh capital trying to service a small market to result in a more saturated one, unless takaful offerings – three of which have already received initial approval – can open up a previously untapped market and increase overall insurance penetration.
The campaign was centred on a lifeline concept that illustrates the journey that everyone undertakes during his or her lifetime. The lifeline featured a number of stages in life such as birth, education, career, and family, retirement, where a suitable insurance product can make a positive change. The centrepiece of the awareness campaign was a public event, which was due to be held from 21 - 24 March at Bahrain City Centre, and included a brand mascot called ‘Amna’, which means safety and peace in Arabic.
Younis Jamal, chairman of the BIA, said: “The perception of insurance has changed largely over the years from protection against life’s unfortunate events to investments that support life’s dreams and aspirations. We want to capitalise on this by educating the public about the advantages of having insurance products that suit everyone’s lifestyle needs. The Insurance Awareness Week is a critical step in this direction." BIA promoted the awareness week in conjunction with the Central Bank of Bahrain.
Clements Worldwide launches Dubai operation Insurance provider Clements Worldwide has opened an office in the Dubai International Financial Centre (DIFC), its ﬁrst on-theground location in the Mena region. Clements said the new sales ofﬁce will extend the delivery of commercial cover and its specialty risk insurance products, such as coverage against political violence and kidnap and ransom. Andy Grimes, the newly appointed director of Clements Dubai, said: “The Mena region is one of Clements’ largest markets as far as our client base is concerned.” He added: “The Dubai office will enable us to better service our existing and expanding client base as well as elevate our organisational proﬁle on a global scale.” Grimes will report directly to Clements’ senior vice president, Dan Tuman, who commented: “This expansion is critical to our global strategy, and while we’ve been successful in the Middle East and North Africa region for decades, there still exists an enormous amount of untapped potential.”
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GLOBAL VIEW Dr Suzanne Corona, head of natural perils at Asia Capital Reinsurance Group, explains the importance of food security
he issue of food security is one of primacy for Asia, if not the world. According to the Asian Development Bank, Asia “faces a formidable challenge of feeding ﬁve billion people by 2030”. Central to the issue is the role of the agriculture industry, which currently contributes to between 20 and 50% of intermediate consumption for the production of food in a country. Apart from the moral considerations of managing food security, history is also replete with examples of the attendant risks to social stability. Adequate protection of agricultural interests is therefore fundamental in managing food security, an area in which the (re) insurance industry has an important role. Recent developments have shown the increasing preference of governments to use insurance as a risk transfer tool. They often utilise sustainable risk pool solutions, and subsidise farmers’ insurance to help them mitigate potentially large accumulations of losses from mega catastrophes. The case for a collective risk management scheme in the form of agriculture pools to mitigate the risks associated with food security is strong. Take the Southeast Asian grouping of the ASEAN nations for example – a pan-ASEAN agriculture pool could bring together capacity from the member states, who could each take its share of risk in terms of both premiums and losses. This is the manifestation of the principle of solidarity. The innovative feature of such a pool is that net importing (“consuming”) and net exporting (“producing”) countries are brought together in one scheme. The issue of food security for Asia is not one that can be optimally managed by a single stakeholder alone – private/ public partnerships are the way forward for the development of a sustainable risk management solution for the region, if not, the world.
Greater insurance awareness needed in Iraq
BIA elects new board
Iraq’s corporate insurance market urgently requires an educational and awareness campaign to overcome mistrust towards the sector. This is the clear message to emerge from an analysis of the sector and interviews with senior industry executives. The scale of the task facing existing and new insurance players is tough. William Wakeham, CEO of AAIB Insurance Brokers, explained that there is a traditional practice for many companies in Iraq to self-insure, the insurance culture is not strongly embedded and in some cases insurance demand is driven only by contractual requirements. Wakeham said: “It’s a complex picture. Demand for commercial insurance also varies by sector – the logistics, aviation, construction and energy sectors, for example, are more familiar with insurance products than companies in some sectors, and have a higher level of understanding of the coverages and the benefits of these.” The public’s lack of trust in private insurers and local private banks is a major trend in Iraq, said Jamal Asfour, CEO of Asia Insurance Company, and this is the reason why the Iraqi banking sector lags behind the petroleum and telecom sectors in terms of growth. In Asfour’s view, the ﬁrst challenge for the Iraqi insurance industry is to “revitalise the image” of private insurers by offering state-of-the-art products with international standards. Read more on pages 13-15.
The Bahrain Insurance Association (BIA) has elected a new board for its next term 2013-2015. During the BIA’s annual general assembly meeting at the Gulf Hotel in Bahrain on 28 March 2013, Younis Jamal Al Sayed was elected as the chairman of the board and Waleed Mahmoud was elected as the vicechairman. Stephen Wagstaff has been assigned as the board secretary and Mohammed Radhi as ﬁnancial treasurer. An additional ﬁve members of the board have also been elected. These are: Fouad Abdulla Aziz; Robert Grey; Fadi Al Khatib; Steve Samson; and Youssef Al Kareh.
S&P 'optimistic' on KSA's insurance sector Prospects appear to be improving for Saudi Arabia’s insurance industry, according to a new report from Standard & Poor’s (S&P) Ratings Services. S&P credit analyst David Anthony said the company is “guardedly optimistic” in terms of insurance earning in 2013 because the Saudi Arabian Monetary Agency (SAMA) has been actively encouraging insurers to price cover at a rate that will enable them to make a proﬁt, which is expected to lead to more realistic pricing. The report said: “We also anticipate a resurgence in residential construction, fuelled by mortgage loans to individuals, when the 2012 Mortgage Law comes into effect."
THE POLITICAL RISK CHALLENGE Domestic and geopolitical instability are a major concern for the insurance industry By Ronan McCaughey countries experiencing downgrades in comparison to 21 in 2012. sk any insurance execuIn the Mena region, after domitive or broker in the Mena nating the downgrades in 2012, insurance industry to three Middle Eastern countries, name the top threats facing the Bahrain, Oman and UAE were industry and political instability upgraded in 2013, reﬂecting a will certainly feature highly. stabilisation and differentiation of Most interviewees in the 2013 political risk in the Mena region. Mena Insurance Barometer, for Phil Bonner, head of credit and example, rated political instability, ﬁnancial risks at Aon Benﬁeld, says: both domestic and geopolitical, as “The insurance market’s ability to the most relevant threat to their absorb risk and react to the changoperating environment. ing world highlighted in the map is Similarly, in Mena Insurance Reto a large extent dependent upon view’s Mena 2013 Broker Survey, reinsurers’ capacity for single and 30% of respondents said political aggregated risks. instability is the biggest challenge “There is current uncertainty facing the sector in 2013/14. surrounding the levels of contagion Certainly, the Arab Spring has risk – the extent to which ﬁnancial raised awareness of political difficulties will spread from one or risk throughout the region. The more banks to a large number of release of Aon’s 2013 political risk other ﬁnancial institutions within map, which indicates some stabiligeographic regions.” sation of political risk in the Mena As a report published by Marsh in region, is therefore welcome. December 2012 points out, political The map measures political risk is about fortuity. It says: “No inrisks, political violence and terrorvestors commit time and money to ism in 163 countries and territories to help companies assess the risk levels of exchange transfer, legal and regulatory risk, political interference, political violence, sovereign non-payment, and supply chain disruption. For 2013, Aon's political risk map shows an increase in the number of countries with upgraded political risk ratings. Thirteen countries were upgraded in 2013 as opposed to three in 2012. The 2013 map also shows only 12 Ewen McRobbie, former CEO of Q-Re
“Political instability is clearly a major risk factor in the Middle East. However, this is likely to be a short-term hiatus and not expected to eclipse the strong, long-term fundamentals of the region”
a project they believe will be prejudiced, but government changes are unpredictable.” The Marsh report explains that political risks differ depending on the type of project being undertaken. For a government-owned and operated project, the risk for the contractor is, in case of a war or an embargo, not being able to ﬁnish the project, experiencing payment risk, and the damaging of equipment on site. For private sector-owned projects, the same types of risks apply for the construction period, but the risks increase when the asset becomes operational. Factoring in political risk is therefore likely to remain a key constant for the Mena insurance sector during 2013 and 2014. However, it can be argued that the political situation has been coped with by insurance markets domestically and internationally. Furthermore, since political unrest can signiﬁcantly impact the insurance industry in terms of premium ﬂows and rising claims, it is in everyone’s interests that the Mena region experiences sustained stability. As Ewen McRobbie, the former CEO of Q-Re was quoted in the 2013 Mena Insurance Barometer as saying: “Political instability is clearly a major risk factor in the Middle East. However, this is likely to be a short-term hiatus and not expected to eclipse the strong, long-term fundamentals of the region.”
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RATINGS WATCH Compulsory medical insurance offers growth opportunity By Mahesh Mistry, director, analytics at A.M. Best and Yvette Essen, director, industry research, Europe & Emerging Markets, A.M. Best
he Qatari insurance market is well-positioned for continued strong growth as strong economic development enables infrastructure expenditure. The proposed introduction of universal compulsory medical insurance by 2014 would provide another substantial boost to the market, which saw gross premiums written (GPW) reach QAR3.8bn ($1bn) in 2011.
“The introduction of compulsory medical insurance in Qatar is regarded as one of the greatest opportunities for growth” Qatar’s insurance market has grown from approximately QAR 2.5bn in 2006 at an annual compound growth rate of about 10% from 2006 to 2011. Nevertheless, insurance premium as a percentage of gross domestic product (GDP) was one of the lowest in the Gulf Cooperation Council (GCC) at just 0.6% highlighting both the potential and the challenges for growth of the Qatari insurance market (see table). While opportunities for market growth exist, Qatari insurers
will reinforce the need to focus face a range of challenges. on prudent underwriting. A recently published A.M. Qatar’s insurance market is Best report, Qatar’s Insurance focused heavily on the energy Market Is Well-Positioned for and construction sectors. ThereStrong Growth, notes increased fore, insurers must manage competition is expected, which high value and volatile risks and may place greater pressure on consequently retention levels companies’ technical pertend to be low. A dependence formances. Insurers face the challenge of growing their franchises in a “Insurers face a prolonged competitive environment while maintain- period of low investment yields, ing profitability. which may make it difficult for Qatar’s investment some Qatari insurers to achieve markets have suftheir return-on-equity targets” fered less than their GCC counterparts, although investment on international reinsurance income has been restricted in markets for support can lead recent years by the depressed to significant levels of counterequity and real estate markets. Insurers face a prolonged period party credit risk and potentially higher costs driven by internaof low investment yields, which tional market forces. may make it difficult for some In common with other GCC Qatari insurers to achieve their countries, the enterprise risk return-on-equity targets and
Qatar Market Summary INSURANCE PREMIUMS ($M) Life
PREMIUM PENETRATION (% OF GDP) Life
NUMBER OF COMPANIES Insurers
Sources: International Monetary Fund, World Economic Outlook Database, October 2012, Swiss Re sigma No 3/2012, A.M. Best Research
management (ERM) frameworks for some Qatari companies have evolved over the years, but require further development. Insurers need to continue developing internal ERM capabilities and processes. More robust models and techniques need to be adopted by Qatari insurers to enable them to keep pace with the changing environment. The introduction of compulsory medical insurance in Qatar is regarded as one of the greatest oppor-
tunities for growth. A.M. Best expects initially, this business will be profitable overall as demand outpaces supply and claims do not rise as fast as premiums. However, in the medium term, margins of medical business are likely to be in low single digits with only a handful of experienced insurers making a profit out of the business. Compulsory medical insurance has the potential to be a major challenge for the market if not managed properly.
AM BEST AM BEST
Al Ittihad Al Watani Société Generale D’Assurances
Arab Reinsurance Co.
Arabia Insurance Co.
MOROCCO Société Centrale de Réassurance
As of 28 March 2013
National Life & General Insurance Co. Oman United Insurance Co.
QATAR Al Khaleej Takaful Group
Doha Bank Assurance Co.
Doha Insurance Co.
Qatar General Insurance & Reinsurance Co.
Qatar Insurance Co.
Compagnie Centrale de Réassurance
SAUDI ARABIA Arabia Insurance Cooperative Company
Al Sagr Cooperative Insurance Co
ACR Retakaful Arab Insurance Group Bahrain Kuwait Insurance Co. Bahrain National Insurance Co BSC
Mediterranean and Gulf Co-operative Ins and Re-Ins Co
Saudi National Insurance Co. Takaful International Co. Trust International Insurance & Reinsurance Co.
Saudi United Cooperative Ins Co.
Trade Union Cooperative Insurance Company
Wataniya Cooperative Insurance Co.
Weqaya Takaful Insurance and Reinsurance Co.
TUNISIA Compagnie d'Assurance et de Réassurance Tuniso-Européenne
Société Tunisienne de Réassurance
UNITED ARAB EMIRATES Abu Dhabi National Insurance Co.
EGYPT Arab Misr Insurance Group
Hannover Retakaful Life Insurance Corp. (International)
Malath Cooperative Insurance & Reinsurance Co.
Al Ain Ahlia Insurance Co. bbb
Al Dhafra Insurance Co.
Arab Orient Insurance Co.
Al Sagr National Insurance Company
First Insurance Co.
General Arabia Insurance Company
Orient Insurance Company
Jordan Insurance Co.
Dubai Insurance Co.
Middle East Insurance Co.
Dubai Islamic Insurance & Reinsurance Co. (Aman) a-
Emirates Insurance Co.
Al Ahleia Insurance Co. Al Fajer Re
The Arab Investment and Export Credit Guarantee Corp Boubyan Takaful Insurance Company KSC
Gulf Insurance Co.
Gulf Life Insurance Co.
Kuwait Reinsurance Co.
National General Insurance Co.
National Takaful Company (Watania) PJSC
Noor Takaful Family
Noor Takaful General
Al Buhaira National Insurance Co.
The Company for Cooperative Insurance (Tawuniya)
Q Life & Medical Insurance Co
AM BEST AM BEST
Oman Insurance Co. BBB+
Ras Al Khaimah National Insurance Co.
Warba Insurance Co.
Salama - Islamic Arab Insurance Co.
Wethaq Takaful Insurance Co.
Iraq Gate Insurance Brokers Baghdad, Basrah, Erbil
International Insurance and Reinsurance Brokers Authorised and regulated by the Iraq Insurance Diwan
IRAQ Ten years on from the Iraq war, low penetration rates, a lack of awareness and public trust and a volatile security situation mean Iraq’s insurance is not for the fainthearted. But there are encouraging signs for the future By Ronan McCaughey
raq’s corporate insurance market urgently requires an educational and awareness campaign to overcome low penetration rates and mistrust towards the sector. This is the clear message to emerge from an analysis of the sector and interviews with senior industry executives. The scale of the task facing existing and new insurance players is tough. William Wakeham, CEO of AAIB Insurance Brokers, explains that there is a traditional practice for many companies in Iraq to self-insure, the insurance culture is not strongly embedded and in some cases insurance demand is driven only by contractual requirements. Wakeham says: “It’s a complex picture. Demand for commercial insurance also varies by sector – the logistics, aviation, construction and energy sectors, for example, are more familiar with insurance products than companies in some sectors, and have a higher level of understanding of the coverages and the benefits of these.” The public’s lack of trust in private insurers and local private banks is a major trend in Iraq, says Jamal Asfour, CEO of Asia Insurance Company, and this is the reason why the Iraqi banking sector lags behind the petroleum and telecom sectors in terms of growth. Asfour says the context behind this lack of faith in the private sector is that historically, the financial sector was controlled by government-owned companies and there is a tendency to insure with a government-owned insurer, and do banking with a governmental bank. “Corporates still view private insurers as premium swallowers,” says Asfour. Given that many companies previously rejected claims, he says this then cast the rest of the country’s insurance sector in a negative light. In Asfour’s view, the first challenge for the Iraqi insurance industry is to “revitalise the image” of private insurers by offering state-of-the-art products with international standards. Insurance awareness is another issue that “needs devotion” from all players as insurance should be viewed as a requirement, says Asfour. Lines growth Wakeham says the AAIB team expects to see the core lines of commercial property, construction and liability classes undergo “reasonable growth” over the 2013-2014 period.
COUNTRY FOCUS 17
He says this view is based on inward investment flows, projects awarded to international oil companies plus various projects focused on developing infrastructure, including transport and residential developments. Meanwhile, Asfour says health insurance is the business line most in demand. “The Iraqi market lacks a proper healthcare sector, which upon development will revolutionise the health insurance sector.” Given the need for health insurance, Asfour says Asia Insurance Company intends to focus on promoting its own products in this area. Gregory Irgin, group risk and insurance manager at UrbaCon General Contracting in Qatar, says there has been some speculation about an increase in activity in the motor market, which can be managed successfully locally. Irgin says: “Therefore, this is a definite growth area being monitored by brokers and insurers alike.” He adds there is also a deduction on auto-fuel revenues on Iraqi gas stations by the National Insurance Company of Iraq to insure drivers. However, Irgin says it remains a little known or used insurance by Iraqis, with drivers settling matters for themselves.
REGULATORY ENVIRONMENT AS OF NOVEMBER 2012 Source: Sergey Lapko, senior insurance officer at Lukoil
REGULATOR: Iraqi Insurance Diwan MARKET: Two state direct insurers and one state reinsurer Approx. 30 licensed insurers REQUIREMENTS: Insurers, brokers and loss adjusters must have a license Licence annually renewed Minimum capital for insurers: IQD 5bn ($4.3m) No mandatory cession to state reinsurer Iraq Re Mandatory types of insurance: Motor Liability
Iraqi market “ The lacks a proper healthcare sector, which upon development will revolutionise the health insurance sector” JAMAL ASFOUR, ASIA INSURANCE COMPANY
Irgin also points to the visit to Kurdistan by SACE, an Italian insurance and finacial group. “There is apparent real intent from SACE to the Kurdistan International Bank to provide educational activities promoting the use of suitable insurance and related financial instruments.” In his opinion, this development gives added support to financial institution insurance awareness that reinsurance markets have been looking to manage and develop with large banks in Kurdistan. Any insurance player considering or seeking to enter the Iraqi insurance market needs to bear in mind five economic and socio-demographic trends shaping Iraq’s corporate insurance market: security; energy policy and infrastructure; legislative reform; governance standards and demographic changes. For example, Wakeham notes that Iraq’s largely state-run economy is dominated by the oil sector, which provides more than 90% of government revenue and 80% of foreign exchange earnings. In addition, Jonathan Biles, CEO of Iraq Gate Insurance Brokers, says: “There are very few properly licenced insurers or brokers giving an international level of service [in Iraq]. The competition that we face in Iraq is largely with illegally operating insurers and brokers from outside the country.” When referring to Iraq, Irgin also stresses that it is important to recognise there is Iraq, and then there is Kurdistan. For example, Iraq’s constitution recognises the Kurdistan Regional Government (KRG). KRG also exercises executive power according to the Kurdistan Region’s laws. As an example of this power, to rapidly benefit from its oil and gas resources, the KRG says it has signed more than 45 production sharing contracts with companies from 17 countries. Irgin observes that as neighbouring territories
18 COUNTRY FOCUS: IRAQ
Iraq and Kurdistan, similar to the situation in North and South Sudan, have great economic opportunities that markets want to tap into, but stability appears to be a distant wish. Looking ahead to 2013 and 2014, Asfour highlights that “weak” inspection measures are allowing many companies to insure abroad without an Iraqi front. This is despite the fact that Iraq’s insurance regulator, the Iraqi Insurance Diwan in Baghdad, and the Ministry of Finance in Kurdistan, have clear instructions, says Asfour.
He says: “This is a critical issue that will be the regulators’ task to tackle. The MOF in Kurdistan is looking to implement a strict policy on this and is planning to have 20% of all premium proceedings to support such an initiative.” Overall, there are encouraging signs for new and existing players in the Iraqi insurance market – despite low penetration rates, a lack of awareness and public trust and a volatile security situation. It is also likely that the market would be boosted by a concerted effort from all players to shift perceptions towards it and raise awareness. Q
VIEWPOINT William Wakeham, CEO of AAIB Insurance Brokers
Mena Insurance Review (MIR): What is the state of Iraq’s corporate and commercial insurance market? William Wakeham (WW): The state of the corporate and commercial insurance market is competitive. International insurers have taken a growing interest in the market over recent years and this, coupled with a larger number of domestic players, has provided ample supply of coverage and resulted in pressure on rates. MIR: What current or future regulatory developments are impacting/will impact the Iraqi corporate insurance market? WW: AAIB have staff permanently based in the country and we are closely networked with the local market. From conversations we’ve had, it appears that there are some instances of non-registered insurance brokers doing business in Iraq, raising the question of the legality of policies that have been arranged and the likelihood of claims being met. This is a real concern. We feel conﬁdent that there will be stronger action taken by the regulator in this area to strengthen consumer protection. Another area that could be reviewed will be capital requirements of insurers. The present WILLIAM WAKEHAM minimum capital requirement is low by regional standards and many insurers are small. An increase in the minimum capital needed, even if over a phased period, will bring greater consolidation and increased ability to retain more of the larger risks. There is also the possibility that the state insurers will be privatised so as to bring in fresh investment, additional expertise, greater product innovation and strengthened links to international markets.
However, if privatisation takes place, it will not be in the short term. MIR: Which insurance lines are soft or hard? WW: Ratings for employee beneﬁt covers softened last year and remain soft; cargo rates softened last year but have seen ﬁrmer rating so far in 2013 while liability and property rating has seen mild downward pressure. Construction rates remain ﬁrm. MIR: What is your outlook for the Iraqi corporate insurance market in 2013 and 2014? WW: The outlook for the Iraqi corporate insurance market this year and into next must be positive. The sheer volume of investments made both from domestic sources and foreign sources will boost demand for insurance coverages.
“The sheer volume of investments made both from domestic sources and foreign sources will boost demand for insurance coverages”
MIR: What is AAIB’s outlook on pricing of key lines of insurance/reinsurance in Iraq in 2013 and 2014? WW: We expect pricing to remain under pressure for the key lines of insurance and reinsurance business in Iraq throughout this year and into 2014.
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Q&A: QBE 19
Strength in depth Khalil Eid, general manager and senior executive officer of QBE’s Dubai branch, talks about the provider’s strategy in the Middle East for 2013 and areas for product development BY RONAN MCCAUGHEY Mena Insurance Review (MIR): What’s the winning formula QBE has, that in your opinion, led it to win the commercial lines insurer award at the Mena Insurance Awards in January 2013 in Dubai? Khalil Eid (KE): We understand what we do and know exactly what we are good at. We put a lot of emphasis on training and empowering our underwriters to make sure they have the right skills and tools to deliver their business plans. Before accepting a risk, we do everything we can to understand it so that we can then price it appropriately. Understanding risks is a pre-requisite of sound underwriting. We also have a large pool of expertise in London. QBE has the largest capacity in the Lloyd’s market and our underwriters in London underwrite business on a global basis with many years experience of doing business in the Mena region. Our Dubai team is at the heart of business here and so understand local challenges, market conditions and importantly opportunities. MIR: What’s QBE’s strategy in the Middle East in 2013? KE: This year will primarily be about strengthening our offering. Maintaining our high service levels is a critical factor for us and to ensure this is not compromised by our expansion, we are hiring more underwriters. The second part of our strategy is identifying
opportunities in new areas. QBE is the fourth largest commercial insurer in London and the UK market, which means that we have considerable expertise and many product innovations to bring to the Middle East market. At the moment, we are considering a variety of products including trade credit and aviation liability. Dubai is a business hub and many companies that are based here have trade credit requirements. We also believe that general aviation, and its associated airlines, products and airports risks, is an area worth exploration for us. We can support local insurers who are happy to write primary hull and liability policies, but don’t want to run the large liability limits that may be required by their clients owing to lease, or regulatory requirements. We are in the process of evaluating the market currently which will inform our decisions on the people we would want to approach, the best distribution model and the business sectors and territories we wish to target. MIR: What commercial lines of insurance is QBE focusing on in the Middle East?
Khalil Eid, QBE
KE: Insurance growth in the Middle East is inextricably linked to GDP growth. While insurance penetration rates themselves have not changed much over the past ten years, the insurance sector has experienced significant growth as the economy has grown, notably on the back of construction projects and investment in infrastructure. As a new entrant to the market in 2009 and as a facultative reinsurance player, we have concentrated our efforts on property, casualty and construction lines. We have enjoyed success in our core lines of business and in our strongest areas of professional indemnity and general liability, we are now one of the largest underwriters of these classes in Dubai. MIR: What areas does QBE in the Middle East need to improve on? KE: With four years of development in Dubai behind us, we believe that the keys to our success come from a continued emphasis on profitable growth, delivering high quality products, and building trusted partnerships with brokers and cedants. Q
20 FEATURE: ENERGY INSURANCE
Mena’s positive energy T Mena’s energy insurance market is set for continued growth as established players increase capacity and multinationals establish offices to service a region, where the World Bank estimates that more than $30bn of energy investment is required annually until 2040 BY PAUL GOLDEN
here are several reasons to be bullish about the Mena energy insurance market and the outlook is positive with continued growth and increasing competition expected. Dermot Dick, chief underwriting officer (international) at Emirates Insurance, says the price of oil is high enough to drive continued infrastructure spending on exploration and production, despite the absence of large numbers of high-profile new projects. In terms of the latest trends, Dick explains that upstream/offshore business is less competitive due to there being fewer players in that market, but onshore/downstream is still massively over-capacitated and very competitive. Dick says: “Among the local players [including] Emirates Insurance, Q-Re, Trust, Oman, AAA, Adnic, IGI, there is probably $250m upstream and downstream, enough to place a medium-sized upstream risk. Add in AIG, Zurich, ACE and Liberty and you get to well over $600m.” He adds: “Upstream pricing is pretty stable – there is pressure for 5% rises but this is not always achieved. Due to over-capacity and competitive tendering of major accounts, downstream is probably minus 10% risk adjusted.” Omar Gemei, vice-president of Marsh’s UAE energy practice, says there is a significant amount of capacity in the market versus the probable maximum losses of most downstream energy construction projects. He says many underwriters are targeting regional business due to positive risk features, such as no natural catastrophe exposure and the quality of hardware and software used in energy facilities. Rainer Lehner, senior executive officer at the Dubai
FEATURE: ENERGY INSURANCE 21
branch office of Asia Capital Reinsurance Group, explains there have also been concerted efforts on risk management and despite competitive rates, onshore energy lines have been profitable. “However, the offshore sector has experienced some significant losses over the last few years, leading to negative results for some reinsurers,” he adds. Competition As well as growing interest from global and regional insurers, Lehner refers to local players becoming more willing to participate in large capital risks due to the region’s low catastrophe exposure and attractive loss ratio. “While differences exist in individual markets, the Mena energy insurance market as a whole has become more competitive. Rates have been relatively stable over the last 12 months and treaty renewals have done well for many local markets so far and I expect that trend to continue. “Slight increases have been seen in some offshore accounts and the same goes for selected onshore accounts, which have been impacted by losses over the same period. Well-performing onshore accounts, however, may have experienced some minor discounts.” With the development of the (re)insurance industry across the region and capacity being more readily available locally, Lehner expects more risk to be placed with international players operating locally rather than being placed abroad. Nadjib Bouzeboudjen, chartered insurance energy underwriter at Trust Re, says underwriting discipline
“Rates are flat with an upward trend on mostly catastrophe-prone areas. The main factors are increased catastrophe risk, recent losses, increased reinsurance costs and increased fixed costs.” Regulation has a limited impact on the market, he suggests. “Regulation is quite mature in this market and thus is already well embedded within operations and in the way of doing business Opportunity According to Gemei, the major opportunity for the Mena energy insurance market is insuring Arab interests abroad. “Sovereign wealth funds, national oil companies and conglomerates are investing in Europe, North America and the Far East and there will be opportunities for Mena-based energy insurers to underwrite such risks.” According to Bouzeboudjen, Saudi Arabia, UAE, Algeria and Iraq are where the greatest opportunities lie, supported by the amount of investment in the energy sector being put forward by these countries, which he says accounts for more than half the investment for the whole Mena region. Dick, meanwhile, identifies Dubai, Kuwait, Abu Dhabi and Qatar as being where the major opportunities lie. He says: “Dubai is eying Singapore as an energy/maritime hub and seeking to develop rig repair/ construction and related legal and adjusting activities. With the reinsurance market developing in and around the DIFC there is a concentration of business, and the Dubai market can take its share of business from south east Asia and also from Africa, which is seeing a huge boom in energy activity. Iraq is a huge future opportunity but probably restricted to Kurdistan for now.” Gemei expects the Mena energy insurance market to experience continued growth as established insurers increase their capacity, multinationals establish regional offices and new insurers/reinsurers are created. Giles Hussey, senior underwriter for mining and energy onshore at Swiss Re Corporate Solutions Dubai, says the outlook for 2013 is for a stable market with underwriters looking to hold firm on terms and conditions, while brokers look for other ways to retain existing clients and look to new clients to achieve their growth targets. Dick downplays the impact on the market of the political and economic environment in the region and is bullish about the prospects for the next 12 months. “I expect continuing growth and increasing competition for what has been traditionally a very cheaply priced but profitable book.” Q
wealth funds, national “ Sovereign oil companies and conglomerates are investing in Europe, North America and the Far East and there will be opportunities for Mena-based energy insurers to underwrite such risks” OMAR GEMEI, MARSH
has created ‘cautious competition’, but also accepts that there are certain prestigious accounts for which competition is fierce and where limits can exceed reasonable levels.
22 FEATURE: ENERGY INSURANCE
INSIDE VIEW Giles Hussey, senior underwriter for mining and energy onshore, focusing on the Mena region at Swiss Re Corporate Solutions Dubai, gives his view on the latest trends and outlook for Mena’s energy insurance sector
hereas the global upstream energy market has had another year without significant losses, 2012 will be viewed as a sub-standard underwriting year for the downstream market. With 2012 downstream losses estimated to be greater than $2,500m, many downstream energy underwriters, especially those who write a broad global portfolio, are likely to have returned loss ratios significantly higher than 100%. However, recent global insurer results have generally been above average, despite Hurricane Sandy, and the insurance sector appears to continue to provide stable and acceptable returns to shareholders and capacity providers. No one is therefore expecting any significant withdrawals from a market that is still extremely well capitalised. Against this backdrop, following a number of years of disciplined underwriting, upstream underwriters will face pressure on rates. The downstream underwriters will, however, instinctively seek to re-address recent poor results and will look to increase rates, especially as the general view is that rates bottomed out quite some time ago. Underwriters’ progress in achieving this will continue to be offset against the plentiful supply of capacity to this sector. Interestingly, the 2012 downstream energy losses resulted from a much higher than normal frequency of operational “risk” losses, rather than natural catastrophe losses. Even the esteemed Mena region, which most in the industry regard as a relative safe haven with its perceived high-risk quality and lack of nat cat exposures, suffered a significant downstream energy operational loss.
Risk-selective Given the higher-than-normal operational frequency losses, downstream underwriters who have adopted a more ‘risk-selective’ approach to underwriting this book, will have probably enjoyed better results than those who take a broad portfolio approach. This will encourage the risk-selective underwriters to continue with this approach and, if the portfolio underwriters become more selective and less accommodating with regard to pricing, the market will surely be hoping that it can achieve the desired improved pricing. Focusing on the Mena region, while the downstream market has suffered a regional loss, the view is that the region continues to harbour above-average risks in a low nat cat environment. The regionalisation of the energy market has developed quickly and underwriting companies mostly prefer their regional underwriters to handle regional business. Whether you agree that there is now as much as $2bn of downstream energy capacity available in Mena, no one can argue that there is plenty of regional capacity available for most regional downstream energy risks. Even a risk-selective approach will therefore recognise the continued above-average risk quality and lack of nat cats in the Mena region, so rate increases will be harder to achieve for Mena energy risks. While the global market continues to maintain a watchful eye on their contingent business interruption (CBI) exposures following the 2011 Asia Pacific nat cat losses, as the Mena downstream sector continues to expand, CBI is becoming a key risk issue here, particularly given the high dependency on a small number of suppliers in the region. We spend most of our time considering traditional property and business interruption exposures. Among the emerging risks we face, the market continues to treat political risks carefully, especially with continued unrest in some Mena territories. Many underwriters would be happy to see the standalone political risk market absorb these exposures, particularly in territories that have a perceived threat. However, in more stable territories SRCC is often still covered. Whether it is increased CBI exposures, political or cyber risk, or indeed increasing awareness of exposing ourselves to sanctions relating to refining Iranian crude, the market will continue to invest in its energy offering in the Mena market to ensure we can meet traditional and emerging risks faced by our Mena region energy clients. Q
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06 Q-Re appoints Gunther Saacke as new CEO
06 ACE plans new Tunisian operation
Aim is to grow Q-Re into a leading global reinsurance company
Facultative reinsurance hub plan
06 Takaful sector requires ‘regulatory progress’
Importance of coherent provisions stressed
08 ADNIC targets engineering community Exclusive partnership with the UAE SoE revealed
10 Aon Benﬁeld awarded DIFC licence
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Firm aims to grow its Middle East division
This year’s Mena Insurance Awards celebrate the star performers 17 LINES
Rising interest Demand for ﬁnancial lines insurance is set to grow in Mena 31
Putting clients ﬁrst Insurance players need to become customercentric
For more up-to-the-minute news visit www.insurancemena.com
06 AIG rolls out trade credit insurance in UAE UAE seen as ‘ideal’ for trade credit insurance
07 United Insurance Company’s GM sets broker goal James Portelli explains the future strategy
08 SAMA’s outsourcing regulation seen as “progressive” Latest update from Clyde & Co
Industry alert on insufficient broker training sparks debate 14 PROFILE
Raising the bar A more sophisticated approach to risk management is crucial 26
Momentum needed Political uncertainty continues to act as a brake on the Egyptian market
For more up-to-the-minute news visit www.insurancemena.com
24 LINES: CREDIT RISK
Growing appetite A
Insurance players across the GCC sector are increasingly likely to seek trade credit insurance as economies expand BY PAUL GOLDEN
ccording to the International Credit Insurance & Surety Association (ICISA), 2012 was a good year for Mena trade credit insurers, particularly those in the UAE, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain. “Estimated premium for the region last year was around $50m – an increase of approximately 15% – and the average loss ratio is expected to be between 20% and 25%,” says Robert Nijhout, ICISA executive director. “Economies and related demand for trade credit insurance are growing, making it more worthwhile for new players to enter the market. Reinsurance capacity is adequate and expected to increase. Competition is increasing, in particular on terms and rates and also for existing policyholders with good claims performance.” However, he also refers to a possible lack of transparency when it comes to financial informa-
LINES: CREDIT RISK 25
tion, inaccurate information and loose bankruptcy legislation in several countries as factors hampering growth. “Whole turnover cover is the dominant product, although some demand for non-traditional cover is also seen, in particular from banks, manufacturers and global trading houses.” The ICISA’s 2013 market outlook refers to political instability in Mena causing concern while sentiment is more positive across the GCC. Massimo Falcioni, CEO of Euler Hermes GCC, says he is confident that credit insurance growth will remain robust in 2013. Growth drivers Falcioni says the Arab Spring and international community sanctions on Syria and Iran have redistributed trade dynamics and GCC countries were the first beneficiaries of such events, capturing most of the trade activities thanks to their political stability and openness to trade and export. Other factors that he believes are driving the trend for trade credit insurance in the Mena region include increased sensitivity to trade credit risk among CFOs; sustained economic diversification in the GCC countries; and the implementation of Basel III requirements impacting banks’ operations in financing receivables. According to Falcioni, the UAE and Saudi Arabia are key markets for Euler Hermes GCC. He is also positive about economic growth in Qatar and Kuwait. Meanwhile, according to Coface Emirates Services, trade credit insurance in the UAE is reportedly predicted to grow by 50% within two years in terms of volume of transactions covered. Gregory Le Henand, Coface’s GCC country manager, has been reported as saying the growth in trade credit insurance reflects the UAE’s premier position as a regional and international hub for import and re-export. Given that credit insurance is not yet very well known, Falcioni says: “More education is required. In addition, pricing is still perceived as a commercial element to negotiate rather than a technical risk based feature.” Kevin Willis, director of financial institution rating services at Standard & Poor’s, says the major trade credit insurers often partner with local insurance companies to which they provide underwriting support. “Appetite among insurers/agents/brokers to offer credit insurance is growing. It is still a relatively low profile service, but as economies and exports grow its use will increase. “Users driving the sector are those companies exporting goods from and within Mena countries, with perishable goods, typically agricultural produce, and ‘low technology’ manufacturers tending to be the initial drivers for cover.”
Massimo Falcioni, Euler Hermes
Market share Nijhout says Atradius, Coface, Euler Hermes and the Islamic Corporation for the Insurance of Investments and Export Credit (ICIEC) account for around 85% of the Mena credit insurance market, with total current insured exposure estimated to be in the range of $35bn-$40bn. “The market is generally soft, thanks to a good claims performance and positive economic outlook for the main markets involved, but expectations for the year ahead are mixed. Concern is expressed about political instability in parts of the region, although the GCC is one of the areas where notable growth in demand for trade credit insurance is expected for 2013.” Willis also expects demand to continue to grow over the next 12 months. “GCC economies are expanding and as they seek to diversify their business bases, both regionally and internationally, credit
among insurers/ “ Appetite agents/brokers to offer credit insurance is growing. It is still a relatively low proﬁle service, but as economies and exports grow its use will increase” KEVIN WILLIS, S&P
management will become increasingly important for businesses working in unfamiliar areas.” This upbeat outlook is further substantiated by a reader poll conducted by Mena Insurance Review (see page 6). Asked whether demand for trade credit insurance in the Mena corporate insurance industry is expected to grow over the next two years, 57.1 % said they expected demand for it to rise moderately. A further 17.9% of readers said they expect substantial demand for trade credit insurance over the next two years. The November 2012 HSBC Global Connections report also said while many countries in north Africa have seen their economies disrupted by political turmoil over the past two years, the longer term outlook is encouraging. For example, the report predicts Egypt will eventually record annual export growth of 12-15%, fuelling demand for financial instruments that offset the risk of non-payment. Q
26 RISK MANAGER PROFILE
Flying the ﬂag for risk management Christoph Schwager, chief risk officer at aircraft manufacturer EADS, speaks to Ronan McCaughey about the risks faced by the business, the importance of the Mena region for EADS and how the Mena corporate insurance industry can improve its risk offerings MENA INSURANCE REVIEW (MIR): WHAT DO YOUR DAY-TO-DAY DUTIES INVOLVE? CHRISTOPH SCHWAGER (CS): My job is to be the second line of defence for good risk management. This means supervision of all the risk management practices in the group down to the shop floor, de-risking of the enterprise, active involvement in de-risking, a constant push for a good risk culture, as well as supplying tools and training. With risk management you are always on a journey – it’s a continuous evolution. You permanently improve but you should never lose sight of the goal, which is to have manageable risks. MIR: HOW MANY PEOPLE ARE IN YOUR TEAM? CS: We are the umbrella organisation that overlooks all the risk management activities in the group, which
risk management you “ With are always on a journey – it’s a continuous evolution” CHRISTOPH SCHWAGER, EADS
I head. I have about 30 full-time risk managers just dealing with risk management. This is not in terms of insurance management, but risk management. In addition, there are many risk managers embedded in the business, and my team orchestrates this network. The risks we cover include: operational, strategic, compliance and financial risk management; project risk management; opportunity management; HR risk management; supply chain risk management; internal control, reputational risk management, as well as IT risk and cyber risk and any other that you can think of. MIR: WHAT RISKS ARE MORE OF A PRIORITY THAN OTHERS? CS: There are a couple of very big ones. The most important risk is to ensure we satisfy our customers for the big aircraft programmes. Cyber security is another big risk and is always on the agenda because as a group like us we could be the target for hackers who want to have [the inside] track on the technology and engineering. Currently, my first [major] risk is operational risk. The second is supply chain risk and the third is cyber risk. We are approached by all the big insur-
RISK MANAGER PROFILE 27
ers [for cyber risk] but, so far, I can’t really see a product that is interesting for the industry. It’s because the topic is so fresh and it will take some more time to get to a certain level. For any good insurance, it needs to be to the benefit of the company and the insurer. There needs to be a good understanding of the risks and opportunities and I think we are not yet there. There are regions [in the world] where people are more risk averse and others are more risk-seeking, but the question is always which kind of risk. For Mena, what I’ve found is that people try and protect reputational risk probably more than in Europe. Tailor-made products are the way forward for the insurance business. MIR: HOW DEVELOPED IS ERM IN THE MENA CORPORATE INSURANCE SECTOR? CS: It depends. I’ve had good talks with some of my colleagues in the Mena region. It is not like you can say the risk management is perfect, but you can find examples where it is better and others where it is less. This is true of Europe, the US and any other region.
we need are common “ What standards for good holistic risk
MIR: HOW CAN THE MENA CORPORATE INSURANCE INDUSTRY IMPROVE ITS RISK OFFERINGS? CS: What we need are common standards for good holistic risk management and so far we are lacking that. We do not even have it for the insurance industry. If necessary, then maybe there should be some pressure from regulators.To improve, there needs to be a good understanding of the business and risk management practice. MIR: HOW IMPORTANT IS THE MENA REGION FOR EADS? CS: It is very important because many of our aircraft are sold to [customers in] the Mena region. They are the biggest customers for the A380 aircraft, for example. The Mena insurance industry is a developing market, the speed it is developing at is very fast and the challenge for Mena is to absorb this. In Europe, we have had hundreds of years to do it.
management and so far we are lacking that. We do not even have it for the insurance industry” CHRISTOPH SCHWAGER, EADS
MIR: HOW CAN RISK MANAGERS BECOME CHAMPIONS OF RISK MANAGEMENT IN THEIR RESPECTIVE COMPANIES? CS: We need competent people. Risk management is a question of methodology and experience. You need to have a great amount of endurance. Be desperate. See the advantage. Show an entrepreneurial mindset and always show the value you bring to an organisation, and talk to the top management. It must not be considered a bureaucratic burden. Very importantly, benchmark with others. Q
28 ASIA INSURANCE COMPANY SPONSORED FEATURE
Focusing on Iraq’s health insurance market In a region that has been blighted by war in recent years, Mena Insurance Review talks to Jamal Asfour, CEO of Asia Insurance Company, about the Iraqi health insurance market
development, local insurers are reluctant to begin writing health insurance. However, Asia Insurance took the initiative by establishing a health insurance arm and began its journey in Kurdistan Iraq, which is considered a safe haven zone in Iraq. We commenced operations in mid-2012 and started building the health insurance infrastructure by training medical providers in line with regional benchmarks. We hope such benchmarking techniques will be adopted by all concerned parties to revitalise the infrastructure of the health sector, which will have a positive impact on insurance companies. MIR: How competitive is the market? Do you predict much consolidation in the future?
n the 1970s and 1980s Iraq boasted one of the most advanced medical sectors in the entire Middle East, including free healthcare for every citizen. Few countries in the region could match Iraq’s 172 modern state hospitals and 1,200 primary healthcare centres in operation by the late 1980s. However, the aftermath of political isolation and the 2003 war caused a total collapse of the healthcare sector; doctors ﬂed the country, medical equipment was damaged and/or in a state of disrepair. Thus, the government began serious plans to reconstruct the damaged health sector which, due to instability and other factors, was beset by delays and failures. To ﬁnd out more about the Iraqi health insurance market, Mena Insurance Review spoke to Jamal Asfour of Asia Insurance Company. Mena Insurance Review (MIR): How has the Iraqi health insurance market developed in recent years and in what ways does it need to improve? Jamal Asfour (JA): The growth of the health insurance market is somewhat co-related with the healthcare sector. As the healthcare sector is still under
JA: The health insurance market is still lagging compared to other countries in the region and it still needs a lot more health insurance providers to cover all governorates in Iraq. Thus high service standards, such as direct billing for example, cannot be granted all over Iraq. This is certainly linked to the country’s security and economic stability which is still a serious concern. In addition, the lack of insurance awareness is another issue which we, as insurers, are trying to tackle through educational campaigns. This means that, currently, it is not possible to measure competition level. MIR: What opportunities does Asia Insurance Company foresee in the market? JA: Asia Insurance believes the Iraqi market will witness a new era as foreign investors set up new standards with regards to granting employee beneﬁts like health insurance or workers’ compensation insurance. This will encourage local companies to follow suit and thus create corporate demand for such products. As for individuals, we believe that we will reap the beneﬁts of our ‘Know Insurance’ campaigns
ASIA INSURANCE COMPANY 29 SPONSORED FEATURE
in the near future, especially with the opening of new private health facilities like hospitals. In addition, the improvement in security and stability will have a positive reﬂection on the life pattern of the population as they will begin seeking private health insurance with reputable, trustworthy partners. MIR: What expertise can Asia Insurance Company offer in this sector? JA: At Asia Insurance we are committed to adding value to all our clients and associates. We believe in long-term relationships and will seek to have solid partnerships with each of our clients and associates, based on exclusivity, mutual trust, transparency and quality of service. Prior to its launch, Asia Insurance was keen to partner with the world leaders in insurance in line with their approach. For health insurance, Asia Insurance teamed up with Munich Health and formed MedNet Iraq. Thus, we consider ourselves the pioneers of health insurance in the Iraqi market. We are currently the only company with direct billing facilities, and we automatically include Jordan in our medical network. Asia Insurance also teamed with Assist America to offer global emergency assistance to its health insurance members in addition to other insurance products. Asia Insurance’s majority shareholders, Faruk Group Holding, will also launch the Faruk Medical Centre, which is a $250m project offering state-ofthe-art facilities and equipped with the latest technology. This will further strengthen our health insurance product offering position. MIR: Are there any regulatory issues that concern you? JA: The implementation of inspection measures on non-admitted insurance policies is a key concern for all local players. Although it’s not allowed, many local companies are not following instructions, which has resulted in insurance premiums being leaked outside of Iraq. Also, it is worth noting that there are two regulatory bodies in Iraq; the regional law (Kurdistan region) and the central government law (Baghdad). Companies that operate in both regions will need to comply with both legal bodies which can create a burden on insurers, especially with regard to the compulsory ﬁ-
nancial deposit and other regulatory fees that have to be paid by insurers to regulators. MIR: What do you think will happen to health insurance costs in the short and long term? JA: The costs will remain stable in the short term but, upon the completion of new hospitals, prices will automatically increase in order to cover for the unprecedented developments in quality and the improved medical treatment levels. Indeed, the accommodation facilities offered by the new hospitals will be a key differentiator with other existing facilities. MIR: What do you think will revolutionise the Iraqi health insurance market? JA: The government’s vision and political willingness is vital to begin revolutionising Iraq’s health insurance market. The implementation of this requires dedication, education, ﬁnancial planning and contribution from all parties (insurance companies, TPA, direct payers, hospitals, clinics and regulators). To propose solutions, I would initially suggest compulsory health insurance for the expat workforce in Iraq, which we are already pursuing at Asia Insurance with the Kurdistan regional government. In addition, it is even more important to restructure the whole system and involve insurers with the public healthcare systems in order to increase quality standards and reduce various costs. Finally, focused government initiatives to develop the infrastructure of the health sector including the training of providers, increased privatisation, and benchmarking will support the other points mentioned above and lead to the recovery of Iraqi health infrastructure damaged by war. Q
implementation of “ The inspection measures on nonadmitted insurance policies is a key concern for all local players” JAMAL ASFOUR
30 AIG SPONSORED FEATURE
The Mena insurance market: an oasis of opportunities Neil Ross of AIG talks to Mena Insurance Review about the opportunities and difficulties that lie ahead in the trade credit space
s the European insurance markets continue to face difficulties or fall out of favour, many global companies are looking to increase their exposure and foothold in the markets further aﬁeld. The Middle East and North Africa offer a wealth of strong prospects and diverse sectors to those who are willing to dip their toes in the water. AIG is one such company and Neil Ross explains the rationale behind its trade credit strategy. Mena Insurance Review (MIR): What’s your view of the current regulation in the places where AIG operates in the Middle East and how does it compare to European legislation? Neil Ross (NR): AIG has been underwriting trade credit for over 40 years and we have a long tradition of insuring sales in the Middle East from Europe, the Americas and the Asia Paciﬁc region. We have steadily seen the importance of the Middle East in global trade growth, with Dubai establishing itself as one of
the world’s key trading and ﬁnancial hubs. The expansion of trade credit has played an important role in accelerating the region’s growth, however the speed of economic and political change in the region has highlighted the need for companies to manage and protect themselves against non-payment risk. One of the biggest challenges for credit insurers operating in the region is to get access to meaningful risk information in order to assess the credit risk on companies. In most European countries, companies are required to publically ﬁle their ﬁnancial statements, whereas ﬁnancial statements are rarely available in Middle East. Therefore, underwriters are making risk assessments and setting credit limits by piecing together a proﬁle of the buyer from varying sources. MIR: How do opportunities for growth in the Mena insurance market compare to the European market? NR: The European market is a mature credit insurance market with relatively low growth and stagnant economic activity is impacting on insurers’ potential for growth. Recent statistics on the UK market indicate that the market premium and number of policyholders has deteriorated over the last 10 years while the country’s risk exposure has increased by more than 50%. Not surprisingly, insurers are following the growth of trade into new markets and the Middle East region offers exciting and dynamic prospects for insurers. The ﬁrst policies to be offered in the Middle East were traditional ground-up policies but more recently, we have seen a signiﬁcant growth in demand for more sophisticated excess-of-loss products, as more professional credit management procedures are adopted.
AIG 31 SPONSORED FEATURE
MIR: Looking at the Mena market as a whole, what are the main challenges? Are they similar to those you experience in Europe? NR: To sustain growth, companies need access to increased working capital. However, the banks that provide liquidity to companies have themselves been hit by recent regulatory changes, driving them to strengthen their capital ratios. The ﬁnancial crisis of
is built on trust, “ Insurance which is especially important in the Middle East region” NEIL ROSS
2008, the recent banking scandals involving rogue traders and mis-selling and the predicted collapse of the euro have all had an adverse impact upon the stock price of many leading banks, blocking their ability to raise new capital. Business units within banks are competing with each other for the allocation of this rather scarce capital and the potential returns on capital are driving the business decisions within the banks as to where that capital is allocated. This has impacted the availability of liquidity to support trade ﬁnance and not surprisingly there has been a ﬂight to quality. Banks are becoming more cautious to deploy capital against sub-investment grade or unrated companies where full capital allocation is required under Basel III. In Italy, it is predicted that 25% of companies will be unable to meet operational expenses as they are starved of liquidity due to their poor rating. In the Middle East, banks face a different set of challenges, namely in obtaining the relevant ﬁnancial information needed to rate a company. Increasingly, banks are recognising the need to lay off credit risk on their balance sheets and this presents a real opportunity for Credit Insurers who can use their rating strength to deliver concrete beneﬁts to both banks and clients. MIR: How important are brokers to your business and do you think their role is changing in the Middle East?
NR: AIG has no direct sales arm and, therefore, brokers act as our main distribution channel into the market. AIG Trade Credit is well known for building long-term partnerships with both our clients and brokers. Insurance is built on trust, which is especially important in the Middle East region. We are working closely with brokers and are building a strong reputation which is helping us to enter new markets. As trade credit insurance is used more and more to support trade ﬁnance, brokers are expanding their own knowledge and expertise to help meet the growing demands of clients. Excess-of-loss is also a relatively new product promoted in the region and the support we have received from the brokerage market has been extremely encouraging. MIR: What can you see the next 12 months holding for AIG’s operations in terms of challenges and opportunities? NR: AIG Trade Credit aims to grow a strong local underwriting team to provide tailored solutions to our clients. We recognise that each market is different and the challenge will be to quickly develop local products which meet the speciﬁc needs of home-grown companies and banks. A key opportunity will lie in working with banks to provide effective support for trade ﬁnance across the whole region. Q
Dubai has established itself as one of the world’s key trading and ﬁnancial hubs
GARRY MURIWAI Director of the Bahrain Institute of Banking and Finance (BIBF)
There is a need for training programmes that help talented locals take the next step
Firms are not only looking for trained staff – they are looking for staff trained to international standards”
he insurance sector in Bahrain and in the wider Mena region has been very successful in recent years, growing quickly from a low base. A region that was almost entirely without insurance until 30 years ago is now attracting major international players who are looking to the Middle East, and particularly the Gulf, as a strong growth market. Of course, this rapid growth means that the demand for trained professionals – and particularly trained local staff – has often outstripped supply. Understanding what training is needed and how to provide it is vitally important, both to the countries in the region and to the insurance firms operating here. As with any emerging insurance market, basic technical understanding is lower than in most markets and many of our training courses are based around providing a sound technical knowledge to new entrants to the sector in a region where the insurance culture is much less embedded. Of course, firms are not only looking for trained staff – they are looking for staff trained to international standards. For international firms, best practice needs to mean global best practice. That’s why the courses within the Centre for Insurance at the BIBF are accredited by the Chartered Insurance Institute (CII) – the world’s foremost insurance learning and qualifications provider. It’s also important to remember that firms are looking for local staff at all levels. Training for lower-level staff is important in giving the regional industry the scope it needs to expand. But, sometimes, too much focus is paid to training at this level, and not enough to the sort of training and coaching that can develop professional skills and prepare future managers and leaders in the industry. A model based on expat managers and a local workforce is not a sustainable one.
So there is a need for training programmes that help talented locals to take the next step – something we have already seen in Bahrain. In terms of what represents best practice for training in the industry, there are a couple of key elements that will help firms to improve the quality of their products and services or increase their revenues. First, the theory that underpins insurance and corporate insurance in particular. In a market where insurance understanding is comparatively low and local penetration is a small proportion of its potential, we see a lot of demand from brokers for courses that provide a thorough theoretical underpinning. Second, alongside the theory, there is also demand for practical sessions that help people to put it into practice. Alongside practical sessions in the classroom, this training also involves site visits and the opportunity to work on real insurance claims. This means that students don’t come out with just a theoretical knowledge, but also with the ability and confidence to put that knowledge into action straight away. This can be particularly helpful in the Middle East as there are specific requirements for training within the region. We have pioneered a world first international qualification in Islamic Insurance (takaful) and have led the way in insurance terminology that had not previously existed in Arabic. Training for the Mena region often needs to be bilingual, meaning students need to be given the ability to transform unfamiliar concepts or terms into easily understandable colloquial Arabic. Demand for insurance training in the Middle East will continue to grow as the industry expands – it is important that the training that is provided continues to match the needs of business. [This requires] a strong theoretical and technical underpinning, complemented by practical, hands-on sessions tailored to local requirements and challenges.Q
Service directory < 33
APEX INSURANCE JORDAN OFFICE Address: 21 Barakat AL Zu’bi St., 7th Circle Amman, P.O.Box 451Amman, Tel: +962 6 5861222, Mobile: +962 79 7544440, email: email@example.com, web: www.apexib.com APEX strives to be the partner of choice; catering to our clients’ needs under an umbrella of experts and professionals in the field. APEX functions and operates within a balanced relationship with all partners; this guarantees a win-win scenario for all parties involved. We are unique in our risk management and reinsurance services, solutions are based on a passion for our clients’ success. We operate within the MENA region and beyond.
JLT SPECIALTY LIMITED Address: The Exchange Building, Suite 604, Dubai International Financial Centre, PO Box 506519 For more information, contact Peregrine Muncaster; tel: +971 4 360 0530; email: Peregrine_Muncaster@jltgroup.com JLT has a long tradition of transacting insurance and reinsurance business in MENA. Our specialist focus and broad market access means we add value to the insurance market and the insurance buyer.
LOCKTON (MENA) LIMITED Dubai International Financial Centre, Gate Precinct Building 2, PO Box 506794, Dubai, UAE Lockton MENA is one of the fastest growing brokers with in depth experience working in the region and are ideally located to service clients’ insurance and reinsurance requirements spanning across all classes of business.
ASIA INSURANCE COMPANY Jamal Asfour, CEO, email: firstname.lastname@example.org, Asia Insurance Company, Salim Street, Sulaimania, Kurdistan Region, Republic of Iraq. Tel +964 53 330 1811 Offering all non-life classes and licensed to practice insurance activities by the Ministry of Finance in the Kurdistan Region and by the Insurance Diwan for the Rest of Iraq. With a strong capital base of US$25m, we do guarantee extra peace of mind to our various stakeholders. For more info please visit our website www.asiainsurance.net
JORDAN INSURANCE P.O.Box 279, Amman 1118 Jordan, Tel: 962 6 4634161, Fax: 962 6 4637905, email:email@example.com Jordan Insurance Company takes pride in being the oldest insurance company in the Hashemite Kingdom of Jordan having been established in 1951. Growth and development are always among the company’s foremost priorities and objectives, and its diligent hard work and efforst have awarded JIC the leading position in the insurance sector, as it strengthened its ﬁnancial poisition and its insurance activities, and raised its capital to JD30 million in 2006.
ORIENT Contact: Omer Elamin, senior managing director, Orient Building Al Badia Business Park, Dubai Festival City, P.O. Box 27966, Dubai, U.A.E., Tel: +971 4 2531 301, email: firstname.lastname@example.org, web: www.insuranceuae.com
Orient, a member of Al Futtaim Group, commenced operations in 1982. With a paid up capital of 405,000,000 the company is counted now among the leaders in the region and it is the only insurance company in the Middle East which has an “A” rating from AM Best and S&P combined. The company has won in 2012 and 2013 the “UAE Insurer of the year” award and was selected by Forbes Middle East as the best performing company in the Arab world.
AIG MEA LIMITED Address: The Gate, West Wing, 11th Floor, DIFC, Dubai. P.O.Box 117719, UAE, Tel: +971 4 362 1700 Fax: +971 4 362 0841, web: www.aig.com AIG is a world-leading, property-casualty and general insurance organisation serving more than 40 million clients in over 160 countries and jurisdictions. With a 90-year history, one of the industry’s most extensive ranges of products and services, deep claims expertise and excellent financial strength, AIG enables its commercial and personal insurance clients alike to manage virtually any risk with confidence. AIG is the marketing name for the worldwide property-casualty and general insurance operations of AIG Inc.
34 > Service directory
AETNA GLOBAL BENEFITS LIMITED Address: Gate Village Building No. 7, Unit 101, DIFC, P.O. Box 6380, Dubai, UAE. HEALTH & LIFE BENEFITS
Tel: + 971 4 4330 400, Fax: +971 4 4287 105, web: www.aetnainternational.com Aetna is one of the industry’s largest and most prominent international health benefits providers, supporting more than 500,000 international members, backed by 155 years of experience including nearly 40 years in the international marketplace. Aetna’s health management business collaborates with health care systems, government entities and plan sponsors around the world to design and build locally applied health management solutions to improve health, quality and cost outcomes.
MUNICH RE Königinstr. 107, 80802 Munich, Germany, Tel.: +49 (89) 3891-0, Fax: +49 (89) 39 90 56, web: www.munichre.com Munich Re stands for exceptional solution-based expertise, consistent risk management, ﬁnancial stability and client proximity. Especially when clients require solutions for complex risks, Munich Re is a much sought-after risk carrier. As one of the world’s leading reinsurers, Munich Re attaches great importance to its client service, which regularly receives top ratings.
QBE INSURANCE (EUROPE) LIMITED (DUBAI BRANCH) Office 411, Level 4, Gate Village 4, Dubai International Financial Centre (DIFC), PO Box 506840, Dubai, UAE, T +971 4 508 1400, email: email@example.com, web: www.QBE.ae Dubai Enquiries, T: +971 4 508 1400, email: firstname.lastname@example.org QBE has a long-standing history as a commercial insurer and reinsurer across the Middle East. The proximity of our Dubai operations to this region allows us to provide a first class service to brokers and clients underpinned by underwriting expertise and local knowledge.
SAUDI RE King Fahd Road, Bahrain Tower, P.O. Box 300259, Riyadh 11372, Saudi Arabia
Tel: +966 1 201 97 98, Fax: +966 1 201 97 87, web: www.saudi-re.com Saudi Re is a full-fledged cooperative reinsurance company established in Saudi Arabia. With a capital base of 1 billion Saudi Riyals (US$267m), Saudi Re is considered among the financially strongest reinsurers in the Mena region. Saudi Re offers comprehensive reinsurance solutions to clients throughout the Mena region in facultative and treaty both on proportional and non-proportional basis.
NEXtCARE Contact: Lama Amin (Customer Service), Tel: +9714 2095200, Fax: +9714 2095302 email: email@example.com www.NEXtCAREhealth.com The Dubai-based NEXtCARE is one of the MENA region’s largest claims administration companies operating 24/7 with multilingual support, with a direct and partner network encompassing over 4,000 providers in 14 countries and more than 1,5 million members under management. NEXtCARE administers a portfolio of over US$550m claims in value and 4 million claims in volume annually for more than 80 clients; including insurance companies and self-funded schemes.
LIBERTY INTERNATIONAL UNDERWRITERS Office 408, Floor 4, Gate Village Building 5, DIFC, Dubai, United Arab Emirates. Tel: +971 4 302 8000, email: firstname.lastname@example.org, web: www.liudubai.com Liberty International Underwriters (LIU) is the global speciality lines division of Liberty Mutual Insurance Group and distributes its products exclusively through a network of independent brokers. LIU has operated in the Mena region since 2006 providing clients with local expertise, financial strength and a diverse product range including general liability, directors & officers, event cancellation, financial institutions, marine/energy/construction, professional indemnity and terrorism.
To s e c u r e y o u r c o m p a n y ’ s l i s t i n g , p l e a s e e m a i l s . b r o o k s @ p a g e a n t m e d i a . c o m or call +44 (0) 20 7832 6582
With specialist knowledge comes greater understanding. When it comes to performance and quality, you get more with a specialist. QBE is a leading business insurance specialist. Whatever your clientâ€™s business, we know what it takes to better manage and reduce risks. We find innovative solutions and support you with proactive services backed by in-depth understanding. For over 125 years, weâ€™ve been insuring business and now we are one of the worldâ€™s leading insurers and reinsurers, operating out of 48 countries. For business insurance with specialist expertise, visit www.QBE.ae
Business insurance specialist QBE Insurance (Europe) Limited (Dubai Branch) is regulated by the Dubai Financial Services Authority. QBE Insurance (Europe) Limited, trading as QBE Insurance (Europe) Limited (Dubai Branch) is registered as a Recognised Company at the Dubai International Financial Centre, registered no. 0806 with registered office at Level 4, Gate Village 4, Dubai International Financial Centre, PO Box 506840, Dubai, UAE