41% of insurers in KSA and UAE toward improving risk management
Tuesday, 06 23 2015, Category: Insurance and Reinsurance, Country: Gulf Cooperation Council
A report prepared by Ernst & Young (EY) in collaboration with “Munich Re” under the title “Insurance Enterprise Risk Management in the Middle East and North Africa” showed the increasing importance of risk management. There is also increasing debates about it and the necessity of adopting it and integrating it in the main function of insurance companies in the Kingdom of Saudi Arabia and the United Arab Emirates, in lights of the strengthened regulatory procedures in the sector. The survey revealed that 41% of insurance companies in the Kingdom of Saudi Arabia and the United Arab Emirates advocate the necessity of improving the risk management framework.
Sanjay Jain, Director, MENA Insurance Advisory Services, EY said: “the insurance market continues its growth in the Middle East and North Africa region, given the increased spending on infrastructure backed by governments, the giant development projects and compulsory insurance (vehicles and health insurance). And the regulatory environment witnessed lately large changes supervised by the legislative authorities in the Kingdom of Saudi Arabia, the state of Qatar and the United Arab Emirates. As a result of the regulatory framework change, risk management takes a great part of the agenda of the executives of the Middle East and North Africa. And risk management is gaining an increasing importance in the daily activities and the long-term sustainability of insurance companies. But this path is still long since 40% of the companies which participated in the survey in the United Arab Emirates and the Kingdom of Saudi Arabia do not have a dedicated risk management department”.