Company «Ernst & Young» announced in a recent report, the availability of significant opportunities for growth in the insurance sector in emerging markets, such as Saudi Arabia and the United Arab Emirates.
The head of financial services for the Middle East and North Africa in the company Gordon Benny: «the insurance sector is witnessing a steady and rapid growth in countries that previously suffered from low rates such as Saudi Arabia and the insurance companies need which seek to achieve growth and revenue to improve strategies for capital, assets and liabilities and to maintain competitive cost structure without neglecting the needs of its customers, and will be to adapt to market developments and regulatory changes challenge that requires the employment of new technologies and to promote flexibility in all aspects of this sector.
A report, which came in the title of «waves of change: insurance scene in fast-growing markets» Includes the list of risks includes 21 fast market growth and classified according to its future prospects in the insurance sector. The classifications are based on the expectations of economic growth & the growth of insurance premiums until 2020, & to the financial stability &
regulatory changes & the macroeconomic volatility & liquidity risks, and other factors.
Gordon Added that technology continues its essential impact in this sector, as legacy systems limit the ability of some insurance companies to provide analyzes of the data or satisfy customers who prefer digital communication, and the need to provide a strong digital processes and the experiences of rich clients, will be continuous strategic challenge in march of renovation and development of the sector in the coming period, and represents the global expansion opportunities in new markets, a powerful force in accelerating the growth of insurance premiums today, especially in light of the economic challenges in many developed countries.
UAE is considered the fastest growing among the Gulf Council Countries insurance markets, with record compound annual growth rate of 17 percent during the past six years.
UAE market involves the potential for remarkable growth with moderate levels of risks. In a similar form , the compound annual growth rate in insurance premiums per person in Saudi Arabia,exceeds more than 10 percent between 2008 and 2012, most of this growth is due to the mandatory products, such as the adoption of the kingdom on health insurance system, in addition to vehicle insurance against third-party regime.
Tje financial results on the profitability and convenience reflect some concerns in the sector especially in Saudi Arabia, as more than half of the shareholders have scored losses in the first half of the year while many of the companies in the insurance sector has witnessed a decline in equity value for the mandatory required value, issued by Saudi Arabian Monetary Agency (SAMA), which is the regulatory exporting local insurance laws.
The director of the Department of Insurance Consulting in the Middle East and North Africa in the «Ernst & Young» Sanjay Jain said: « technical profitability, & a slowdown in premium growth and compliance with regulatory laws are the three biggest challenges facing CEOs of insurance companies in the Middle East and North Africa, there is clear evidence of what the sector needs of the integration & acquisitions deals, in the light of what has been declared in a limited form in the past six months. »
There are a lot of regulatory developments in the GCC countries, as Saudi Arabia and the UAE and Qatar are witnessing transitional period in terms of regulatory laws. For example, ideals of the Saudi Arabian Monetary Agency seeks to issue guidance notes of new regulatory laws and practices of underwriting ,such as pricing-related to actuarial projections, and requirements of requirements.
By focusing on net profit, can see in areas such as transformation and development using the technology, cost efficiency, and operations restructuring, in order to improve profitability, also companies can consider in the nature of growth and frequency, and mergers and acquisitions, and update strategies, market segmentation, and develop channels distribution focus on the desire of customers and their needs, in order to enhance the overall revenue growth.
The head of financial services for the Middle East and North Africa in the company Gordon Benny: «the insurance sector is witnessing a steady and rapid growth in countries that previously suffered from low rates such as Saudi Arabia and the insurance companies need which seek to achieve growth and revenue to improve strategies for capital, assets and liabilities and to maintain competitive cost structure without neglecting the needs of its customers, and will be to adapt to market developments and regulatory changes challenge that requires the employment of new technologies and to promote flexibility in all aspects of this sector.
A report, which came in the title of «waves of change: insurance scene in fast-growing markets» Includes the list of risks includes 21 fast market growth and classified according to its future prospects in the insurance sector. The classifications are based on the expectations of economic growth & the growth of insurance premiums until 2020, & to the financial stability &
regulatory changes & the macroeconomic volatility & liquidity risks, and other factors.
Gordon Added that technology continues its essential impact in this sector, as legacy systems limit the ability of some insurance companies to provide analyzes of the data or satisfy customers who prefer digital communication, and the need to provide a strong digital processes and the experiences of rich clients, will be continuous strategic challenge in march of renovation and development of the sector in the coming period, and represents the global expansion opportunities in new markets, a powerful force in accelerating the growth of insurance premiums today, especially in light of the economic challenges in many developed countries.
UAE is considered the fastest growing among the Gulf Council Countries insurance markets, with record compound annual growth rate of 17 percent during the past six years.
UAE market involves the potential for remarkable growth with moderate levels of risks. In a similar form , the compound annual growth rate in insurance premiums per person in Saudi Arabia,exceeds more than 10 percent between 2008 and 2012, most of this growth is due to the mandatory products, such as the adoption of the kingdom on health insurance system, in addition to vehicle insurance against third-party regime.
Tje financial results on the profitability and convenience reflect some concerns in the sector especially in Saudi Arabia, as more than half of the shareholders have scored losses in the first half of the year while many of the companies in the insurance sector has witnessed a decline in equity value for the mandatory required value, issued by Saudi Arabian Monetary Agency (SAMA), which is the regulatory exporting local insurance laws.
The director of the Department of Insurance Consulting in the Middle East and North Africa in the «Ernst & Young» Sanjay Jain said: « technical profitability, & a slowdown in premium growth and compliance with regulatory laws are the three biggest challenges facing CEOs of insurance companies in the Middle East and North Africa, there is clear evidence of what the sector needs of the integration & acquisitions deals, in the light of what has been declared in a limited form in the past six months. »
There are a lot of regulatory developments in the GCC countries, as Saudi Arabia and the UAE and Qatar are witnessing transitional period in terms of regulatory laws. For example, ideals of the Saudi Arabian Monetary Agency seeks to issue guidance notes of new regulatory laws and practices of underwriting ,such as pricing-related to actuarial projections, and requirements of requirements.
By focusing on net profit, can see in areas such as transformation and development using the technology, cost efficiency, and operations restructuring, in order to improve profitability, also companies can consider in the nature of growth and frequency, and mergers and acquisitions, and update strategies, market segmentation, and develop channels distribution focus on the desire of customers and their needs, in order to enhance the overall revenue growth.