Ernst & Young: Insurance Opportunities in the Middle East
Thursday, 04 06 2017, Category: Insurance and Reinsurance, Country: Middle East
According to EY’s latest report - ‘Insurance Opportunities in the Middle East’, insurance markets in the Middle East have remained resilient despite economic headwinds and lower oil prices. Two of the region’s largest markets, the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA), have hit the US$10b gross written premiums mark — underlining the region’s increasing significance to the global insurance markets.
However, profitability remains a key concern for MENA insurers. As investment income has not contributed significantly to shareholder returns, insurers have focused on technical profitability and cost reduction. While cost -cutting measures may bring short-term relief, sustained results can only be achieved by a well-executed operational transformation strategy, backed by robust technology and a customer-centric approach.
Sanjay Jain, EY MENA Insurance Leader, says:
“The MENA insurance markets are going through a four-pronged disruption, which is originating from increasing customer expectations, regulatory changes, technological advancements, and economic pressures. Whilst we see pockets of growth, how individual insurers respond to these emerging challenges, will define the future leaders of the business.”
Seven insurance trends are expected to drive the MENA insurance markets in the near future, including: Value Added Tax (VAT), IFRS, Robotics, Analytics, Digital, Technology, and Cyber.
Shaun Crawford, EY Global Insurance Leader, says:
“Emerging markets remain a very exciting story for the insurance sector”.