Takaful operators in the UAE should band together to set up a takaful association which would champion their interests, according to a report by Abu Dhabi-based Truth Economic Consultancy which specializes in economic feasibility studies.

The need exists for an association to represent takaful operators before the Insurance Authority, carry out studies on the development of Islamic insurance, advise on international best practices, and lobby for legislation that would help the sector. The association should also stage regional and international conferences to promote the development of takaful.

Mr Reza Muslim, General Manager of Truth Economic Consultancy, noted that the total assets of takaful companies stand at 3-4% of the total assets of the general insurance market. This small proportion indicates that there is a need for more action to support and promote this type of insurance, including consolidating the related legislation, he said.

He also said that the total revenues of takaful companies came up to about 17% of the total revenue of the general insurance market for  2013, and 35% for  2014. The annual net profit of takaful companies rose to about AED76.4 million for 2014, compared to AED72.1 million for 2013, an increase of 6%. The net profit of takaful operators represented 6% of the net profit of the overall non-life market for 2014, and 4% for 2013.

The call for an Islamic insurance association is made as takaful players are in discussions with the Insurance Authority, on this matter.

There are at least 10 takaful companies in the UAE where the total number of insurers is 60.

Meanwhile, the Insurance Authority has been active in the takaful arena. It is set to launch a Shariah committee for takaful operators by next month which will provide advice on legislation and issues in the sector, Mr Ebrahim Obaid Al Zaabi, Director General of the Authority, said in March.

In 2010, the UAE Insurance Authority promulgated takaful regulations for the first time in the country for Islamic insurers, that are distinct from the regulations governing conventional insurers. In addition, the Authority issued financial regulations for takaful companies, relating to financial, technical, investment, and accounting operations that came into force on 29 January 2015. The new rules include provisions on the distribution of surplus funds to policyholders and separation of policyholders' and shareholders' accounts.

ource: eDaily

Mr Rudy Wuwungan, former CEO of PT MAREIN, ex-Secretary General of the ASEAN Insurance Council, and Lifetime Achievement Award Winner of Asia Insurance Industry Awards, has passed away. Though aged over 70, he had not retired from the industry. He spent more than 45 years in insurance and saw himself as an “obedient servant of the insurance industry”.

He was renowned as an active leader fiercely devoted to the insurance industry right up to his last days.Setting up an insurance research centre in Asia was one of his pet calls. As a member of the Supervisory Board of Indonesian Senior Executives Association (ISEA), he had been planning a public launch of the book on the Asean Economic Community (AEC) at the Asian Motor Insurance Conference next week (18-19 May) in Jakarta. He was also in the midst of setting up a “group of insurance wise men” for the AEC.
Pak Rudi started his insurance career in Malaysia, and then moved to Germany and Hong Kong before returning to Indonesia to join PT Maskapai Reasuransi Indonesia Tbk (PT MAREIN) in 1979, including making the company public. One of his major contributions was encouraging the young by providing them with opportunities. As a veteran, he had many suggestions and projects that he promoted for Indonesia, Asean and Asia.
Pak Rudi served a stint as Honorary Secretary-General of the Asean Insurance Council and as a member of the Supervisory Board of the Asosiasi Asuransi Umum Indonesia (AAUI or Indonesian General Insurance Association).
He was also an active Chairman of PT Asuransi Wuwungan. He spearheaded the publication of several important insurance research including the Sejarah Asuransi Indonesia (The History of Insurance in Indonesia) and the AEC Book.
Our deepest condolences to the family of Mr Rudy Wuwungan.

Source: eWeekly
  

Algeria: 16 Foreign reinsurance brokers to operate in insurance market

Sixteen foreign reinsurance brokers have obtained authorization to operate in the Algerian insurance market through a ministerial decree.

They are from countries such as France, India, Lebanon, Spain, the UK and the US, reported the Algerian Press Service.
There are currently 23 companies in the Algerian insurance market. Apart from life insurers, they consist of six non-specialized public insurers; two specialized public, one state-owned reinsurer; two insurance mutuals and seven privately owned insurers.
The insurance industry achieved a turnover of DZD119 billion (US$1.22 billion) in 2014 against DZD111 billion in 2013, up by 7.4%.

Source: eWeekly

Asia: Trust is the key for insurers

The insurance industry should focus on the effectiveness of its advice rather than just distribution reach, according to AIA's Group Chief Executive & President, Mr Mark Tucker, in Singapore yesterday, emphasising the need for insurers to gain and maintain trust.

Making a summit keynote speech at the opening of Asia Insurance Review’s 25th Anniversary Summit, he said that insurers should not be complacent in discharging their responsibilities to consumers. Instead, they need to uphold the trust of consumers and also restore the faith of regulators in order to reaffirm the benefits which insurance brings to society.
He added agents and financial advisors are the “unsung heroes” of the life industry, and their role will not be usurped, but rather enhanced by technology.
“The evolution of agents, yes; revolution, no,” he said.
“They remain a key touch point, the element of human trust is irreplaceable…but they must know they are advocates of financial literacy and security, not just a company representative out to sell.”
Talking about the chain of trust within the insurance eco-system, he said the trust between regulators and the industry needs to be “restored and repaired” in the wake of the 2008-09 global financial crisis. Reiterating that the industry does not pose a systemic risk, he said the regulatory pendulum has swung too far the other way which could impinge on economic growth.
“Restrictive capital regimes in Europe and North America if followed here will restrain growth in Asia. I must congratulate the regimes in Singapore and China, and their approach towards regulation which takes into consideration local factors should be emulated in Asia.”
Mr Tucker added: “Both regulators and insurers have a common responsibility to preserve the economic health of our societies, so trust is a necessity. Mistrust will lead to higher costs for all involved…so we need to work together to bring the pendulum back closer to the centre.”
Source: eDaily

Takaful: London Islamic insurance body to be launched tomorrow

The Islamic Insurance Association of London (IIAL) will be officially launched tomorrow. The association will represent and promote London as a global centre for Islamic insurance.

The launch will be hosted by the Lord Mayor of London, Mr Alan Yarrow, and IIAL Chairman, Mr  Max Taylor.
IIAL's members include Lloyd's, AIG, Aon, Coblat Underwriting, Clyde & Co, Jardine Lloyd Thompson and Norton Rose Fulbright.
Mr Taylor, a former Chairman of Lloyd’s, speaking at the International Takaful Summit in London in February, said that the UK government has been quite clear that it wants to create a global centre of excellence for Islamic financial services in the city.
He said that the most significant missing piece had been the insurance market. This was despite London having been the home of insurance for over three centuries and still the market where the world brings those risks that require innovative solutions and a bespoke underwriting approach.
The London market can play a leading role in delivering change to the Islamic insurance sector, where there is a real need for greater expertise and knowledge, he added.

Source: Middle East eNews

Health insurance in Iran to reach 10 million slum residents

The Iranian Health Minister has said that 10 million slum residents across the country will receive health insurance plans in the following six months.

There are 10 million people living in slums in Iran, Mr Hassan Qazizadeh Hashemi said. He added that 1.2 million residents of slums and rural areas around the city of Mashhad have so far been given insurance plans, reported the Tehran Times.
The minister added that people younger than 14 are going to receive insurance plans for dental hygiene services.
Last year, the Iranian government launched the inclusive health coverage programme to cover all Iranians. The insurance plan is partly funded by cuts to government subsidies in other areas. Iran has a population of around 80 million.
Source:Middle East

The New South Wales (NSW) thinking deeply on Natural Disasters Fund

The New South Wales (NSW) government is considering a natural disaster fund to protect the state budget from worsening storm, flood and fire events.

This follows last week's storms which are expected to cost hundreds of millions of dollars, mostly in repairs to roads which are uninsured, reported the Sydney Morning Herald.
Ausgrid estimates it has cost A$15 million (US$11.7 million) to roll out 500 kilometres of cable, 300 kilometres of service wire and 20 tonnes of cross arms on electricity poles in recent days to replace damaged infrastructure. The full bill to NSW is certain to exceed the A$95 million set aside for natural disasters in 2014-15.
More than A$2 billion has been spent responding to natural disasters in NSW in the past decade, with costs tripling in the past six years. Contributing to rising costs was population growth in coastal regions with high exposure to flooding and fire.
NSW Premier Mike Baird last year proposed a standalone fund for natural disasters, to reduce the unexpected impact on budget. The concept is being considered.

The Insurance Council of Australia said that insurers had received 24,250 claims by 10am last Thursday from people and businesses affected by storm and flood damage. Insurance losses were estimated at A$161 million.
Mr Rob Whelan, ICA CEO, said: “Most of the claims received are for home and contents, mainly for light damage caused by rain and wind, with a small number of motor vehicle and commercial claims. These are early figures for this catastrophe, and insurers are standing by for many more claims to be lodged over the next few days.
“Thousands of households remain without power and it’s understandable they’re not immediately calling their insurer.”
Mr Baird, who visited affected areas after the storm, said: “When I looked at what I just saw I was in shock, to be honest, in terms of the size and scale of what we are confronting here.
“There is no doubt going to be a very big bill, and it is undoubtedly going to be in the hundreds of millions of dollars.”

Source: eDaily