Aug
19
Insurance Market in UAE grows 9.8 Percent in 2009
Filed Under Life Insurance, Medical Insurance, Middle East, UAE Insurance | Leave a Comment
The insurance industry in the United Arab Emirates seemed unaffected by the global downturn in 2009, growing 9.8 percent over the previous year and generating AED 20.1 billion (USD 5.5 billion) in premiums for the year.
A report issued by the UAE’s industry watchdog, the Insurance Authority, showed that the insurance industry contributed AED 23.7 billion (USD 6.5 billion) towards the economy, compared to AED 21.6 billion (USD 5.8 billion) during 2008.
Property and Casualty business in the UAE pulled in AED 16.8 billion (USD 4.6 billion) in gross written premiums in 2009, an increase of 7.7 percent over the AED 15.6 billion (USD 4.2 billion) in gross written premiums in 2008. Of all premiums underwritten in the property and casualty sector, accident and casualty insurance made up 46.7 percent of premiums, medical insurance comprised 24.5 percent, fire insurance totaled 12.7 percent, and land, sea and air transport business made up 12.1 of underwritten premiums, with the remaining 4 percent coming from other business.
National insurance companies in the UAE accounted for 76.3 percent of all underwritten property and casualty insurance business, with the remainder being comprised of foreign companies. The Insurance Authority’s report pegs earned premiums from property and casualty insurance at AED 16.3 billion (USD 4.4 billion).
While the insurance industry in the UAE did well in 2009, it remains to be seen whether it will continue to do so in 2010. With nearly half of all underwritten premiums coming from accident and casualty insurance, which directly pertains to insuring construction projects among other things, the insurance industry could see a drastic drop in this sector of business considering that the construction industry is still trying to come back from its near total collapse in 2009.
Major construction companies are reeling from the aftermath of Dubai’s economic crisis, with many projects having been postponed and property prices falling sharply across the UAE. Arabtec, one of the UAE’s construction giants saw a 40 percent year-on-year drop in profits for the second quarter of 2010, while British construction company Balfour Beatty reported a 10 percent drop in revenue from its Middle Eastern construction business for the first half of 2010, compared with the same time period last year. If the construction industry in the UAE continues to flounder, then it has a potential knock on effect on the property and casualty insurance industry.
Life insurance and fund accumulation operations in the UAE made AED 3.3 billion (USD 898 million) worth of underwriting premiums in 2009, growing 22.22 percent year-on-year. National companies accounted for a 35.1 percent share of the premiums, while the claims ratio for the life insurance business in the UAE rose from 58.8 percent in 2008, to 59.1 percent in 2009.
At the end of 2009, there were 58 insurance companies operating in the UAE, 32 of which are national companies, while the number of insurance brokers working in the country dropped 20 percent to 169 companies. The large drop in the number of insurance brokers was due to many of them being found not in compliance with a regulation of the insurance brokers profession, namely ministerial resolution (543)/2006.
Aug
2
Health Plan Options Expanded in the Middle East by Aetna
Filed Under Aetna, Expat Insurance, Healthcare, Middle East, UAE Insurance | 1 Comment
The Regional Healthcare Plan (RHP) already offered by AGB to companies in need of healthcare cover for their expatriate employees living across the region has been expanded. There are now two Regional Healthcare Plans on offer: RHP Lifestyle Plus and the RHP Lifestyle plan, which have different levels of cover and benefits, and complement the portfolio of products for individuals and groups of all sizes offered by AGB.
Employers in the Middle East can look forward to an expanded choice of cost-conscious plans and options that can be customised to maximise their investment in employee benefits.
Benefits not normally offered under a local healthcare plan feature in the new Regional Healthcare Plan, in addition to covering both hospital stays and out-patient treatment, Regional Healthcare Plans include the following:
Access to the Aetna Global Benefits’ international healthcare provider network, consisting of over 750 hospitals, labs and medical centres in the Middle East, South-east Asia and Indian Sub-Continent countries;
Cover and evacuation benefits within the Arabian Gulf Cooperation Council (AGCC), Middle East, Southeast Asia and Indian Sub-Continent countries;
Out-of-area cover for accident and emergency treatment and for elective treatment in the country of nationality of a member, should the said country be outside the area of cover; and
Optional benefits including routine dental treatment, pregnancy and childbirth, chronic conditions and wellness.
Members of the RHP also enjoy access to AGB resources and services aimed at helping them achieve optimum health and productivity, including both the online Global Health Databank, and the online Health and Wellness Centre. The Global Health Databank provides a search tool for doctors and medical facilities, city profiles, medical translation services and worldwide safety and security information. The online Health and Wellness Centre contains a wealth of educational information and resources about the key, developing health conditions in the region.
Companies mentioned:
Aetna Global Benefits, the international business segment of Aetna, is committed to helping create a stronger, healthier global community by delivering comprehensive health benefits and health management solutions worldwide. AGB’s expatriate business is one of the industry’s largest and most prominent US-based international health benefits providers, supporting more than 400,000 members worldwide. The organisation’s health management business collaborates with healthcare 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.
Aetna is a leading global diversified healthcare benefits company head-quartered in the US, serving approximately 35.8 million people with information and resources to help them make better informed decisions about their healthcare. Aetna offers a broad range of traditional and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioural health, group life and disability plans, and medical management capabilities and healthcare management services for Medicaid plans. Our customers include employer groups, individuals, college students, part-time and hourly workers, health plans, governmental units, government-sponsored plans, labour groups and expatriates.
Jun
25
Sustained Growth Ahead for the Medical Insurance Sector in the UAE
Filed Under Medical Insurance, UAE Insurance | 1 Comment
A research report entitled “UAE Insurance Market Forecast to 2012” by RNCOS, an India-based market research and information analysis company, points to continued growth in the rates of the medical insurance industry in the United Arab Emirates (UAE). The report projects a Compound Annual Growth Rate of around 42% between the years 2010 and 2013.
Citing the rising healthcare costs and a prospering middle-class population as growth drivers of the medical insurance industry, the report sees a promising future in the coming years, despite the growing concerns about a lack of awareness among the majority of the population.
The government initiatives in place that call for compulsory medical insurance starting this year, plus demand by individuals to take medical cover support the optimistic outlook described in the report.
The current insurance penetration rate of 2 percent in the UAE pales in comparison to the 5 to 15 percent rate of the US and the UK, indicating that there is great potential for growth in this area. Various innovative schemes and better coverage for urban and rural populations will tackle the low penetration rate, supported by strong economic growth and favourable demographic statistics.
An overview of the insurance market structure and trends, covered in the research document, reveals the impacting role that private players are having in the rapid growth of the insurance industry in the UAE. Also covered in the report are the forecasts on various segments of the insurance industry including life insurance, accident and liability, and fire.
Company mentioned:
RNCOS specializes in Industry intelligence and creative solutions for contemporary business segments. The professionals at RNCOS study and analyse the industry and its various components, with comprehensive study of the changing market behaviour. The accuracy and data precision delivered by RCOS proves beneficial in terms of pricing and time management that assist the consultants in meeting their objectives in a cost-effective and timely manner.
Apr
28
Standard Chartered Bahrain to offer insurance for SMEs through Allianz Takaful
Filed Under Allianz, Health Insurance, Income Protection, Medical Insurance, UAE Insurance | 1 Comment
Standard Chartered Bank Bahrain is expanding its offerings targeted at Small and Medium Enterprises (SMEs) by rolling out new insurance products and services through their strategic partner in the region, Allianz Takaful.
The business centric products include office insurance, key person insurance (also known as key man insurance or keyman insurance), group health insurance, as well as corporate savings and pension schemes. Products such as office insurance and key person insurance are designed to protect a business’ assets, financial, human or otherwise, while group health insurance and pension schemes both act as a way to ensure the long term health and wellbeing of staff as well as a perk to help recruit and retain quality staff.
By specifically aiming their new products and services at companies and corporations, business owners, and professionals in Bahrain, Standard Chartered and strategic partner Allianz Takaful are not only trying to open new business avenues, but also providing tools that will help SMEs expand their businesses while managing business risks.
Standard Chartered’s Regional Head of Consumer Banking for the Northern Gulf, Levant and Oman, B. Chandrasekhar said that the “SME sector is one of the key contributors to country’s economic growth and has significant future growth potential therefore we are pleased to be partnering Allianz Takaful, a major global financial services provider with best in class product offerings. As the first Bank in Bahrain, celebrating 90 years this year, the launch reinforces the Bank’s continuous commitment especially to the SME segment in the Kingdom while focusing on the encouragement to SME players for further achievement. Our international network of presence in over 70 countries gives us a distinct advantage to assist the SMEs in Bahrain go global. This, we believe, will go a long way in ensuring we have here for our customer’s successful business growth and expansion.”
Companies Mentioned:
Standard Chartered Bank Bahrain
Standard Chartered Bank Bahrain was the first bank in Bahrain, having been set up there in 1920. Over the years it has grown to the point where it now has the most extensive network among foreign international banks with 5 branch offices and 1 sales center in the country. Standard Chartered Bank Bahrain is the Bahraini branch of Standard Chartered Bank PLC which was established after a merging of the Standard Bank of British South Africa and the Chartered Bank of India, Australia and China, which were both founded in the mid 1800s.
Allianz Takaful
A fully owned subsidiary of the Allianz Group, Allianz Takaful was established in March 2009 and is headquartered in Bahrain. Allianz Takaful is the Allianz group’s first foray into the Gulf Cooperation Council or GCC, and offers Shariah-compliant products and services.
Apr
27
William Russell expands Dubai team on UAE growth
Filed Under Expat Insurance, Insurance Company, International Healthcare, Medical Insurance, UAE Insurance | 1 Comment
William Russell’s distribution deal with the Dubai Insurance Company is paying off, with large demand for William Russell’s Global Plans spurring the company to add additional staff to the Dubai-based team.
The partnership sells William Russell’s Global Health, Global Life and Global Income Protection products, underwritten by Dubai Insurance Company, which are targeted at small and medium sized expatriate employers and individual expatriates in the Gulf Cooperation Council (GCC). In the first quarter of 2010, new group sales have grown 53% over the same period last year and the renewal rate has been at 100% for all plans since November 2009.
With high demand from companies in the United Arab Emirates looking to insure their expatriate employees, William Russell is expanding their office to accommodate the new business, adding a relationship manager for corporate accounts and a claims administrator. Doreen Mboss joins the business as a Corporate Account Manager to maintain and increase business through her client-facing position. Previously, all out-patient claims were processed through William Russell’s UK home office, but with the addition of another claims administrator, eligible out-patient claims will now be processed and paid locally in the Dubai office.
The new additions to William Russell’s Dubai office mean increased levels of service to clients in the area. Customers remain able to freely choose their preferred source of medical treatment, while their claims will now be managed in local currencies within the geographical area, which should expedite claims processing and payment. Group Global Health members are offered access to the Neuron direct settlement network, allowing them cashless access to healthcare facilities in the GCC area.
Companies Mentioned:
William Russell is an international health insurance company, focused on providing health, life and income protection products to expatriates across the globe. Based in the United Kingdom, William Russell opened its doors in 1992 as a family-run company and since then has grown into an international company that does business with people of every nationality in over 180 countries around the world. They have central offices in the UK, Indonesia and Dubai and offer their customers a 24/7 emergency medical assistance hotline.
Dubai Insurance Company
Incorporated in 1970 by the decree of the Ruler of Dubai as a Public Shareholding Company, the Dubai Insurance Company operates as a one-stop insurance shop in the GCC region, selling general, life and health insurance policies.
Mar
26
MetLife planning to Cover the Middle East
Filed Under AIG, Expat Insurance, Insurance Company, Life Insurance, MetLife, Middle East, UAE Insurance | 2 Comments
Following its acquisition of American Life Company (ALICO), MetLife now aims to become a force in the Middle East, which had been missing from its portfolio of 18 countries.
Given that the growth of life insurance sales is happening outside of the US, and ALICO has been in an excellent position to strategically capitalise this segment of the market in Asia, it is only natural for MetLife to take advantage of this opportunity to extend its cover to the Middle East.
Insurers are particularly drawn by the fact that the Middle East is currently under-insured in a severe manner. In developed countries premiums reach about 15 percent of their GDP whilst per-capita premiums in the Gulf account for an average of only 1 per cent of GDP, and it is estimated that insurance premiums grew 28 percent last year.
This calling has brought 58 insurers to the UAE, with approximately half of them being foreign companies. This intense competition has driven down premiums to some of the lowest levels in the world.
Within the particularly undeveloped segment of personal insurance, car insurance and health insurance are the most common products, especially since regulators have started to gradually make them compulsory. Life insurance, the core business of MetLife and ALICO is an even newer concept in this market.
Whilst awaiting regulatory approval for its ALICO purchase, MetLife plans the integration of the two companies and continue watching the markets for opportunities. MetLife hopes to close the deal by 01 November of this year.
Actively present in 55 countries with a 20-million customer base, the presence of ALICO in the Middle East and Japan complements activities of MetLife in China, India and Brazil. MetLife counts with a 70-million customer base.
The success story of ALICO made it one of the crown jewels of AIG, before being bailed out by the US government.
Insurance Companies mentioned:
Possessing over 140 years of insurance expertise, MetLife aims to be an innovator in the field of international Life insurance. Globally, MetLife is able to offer its clients accident and health insurance, life insurance, disability income protection, and retirement and savings products.
Alico provides a broad and innovative range of insurance and savings products to individual customers, corporate clients and high net worth customers. With products to support every aspect of their customers’ lives, and provide comprehensive cover for the employees and commercial needs of their business clients.
Feb
8
Aetna Global Benefits Targets Middle East and Africa Wellness
Filed Under Aetna, Africa, Insurance Company, International Healthcare, Middle East, UAE Insurance | 26 Comments
In an effort to provide more comprehensive levels of coverage and support to policyholders located in Africa and the Middle East, Aetna, a leading international health insurance company, today announced that it would be launching its Online Wellness Center to support plan members in the region.
Aetna Global Benefits, the international arm of the Aetna insurance company, created its Online Wellness Center to help combat some of the more serious health risks throughout the Middle East and Africa. With a higher preponderance to risk of coronary artery disease, cancer, and serious heart conditions, expatriates and local nationals throughout these regions may often be unaware of the serious health risks posed by everyday life. Aetna has designed their online tool with the aim of educating and informing their policyholders, as well as giving them the resources which they need to find adequate and comprehensive care in the event of a serious illness or untoward accident.
Mark Jardin, the Managing Director for Aetna Global Benefits in Africa and the Middle East stated that the company wants “to engage, educate and motivate members through the AGB Wellness Centre.” Mark was appointed MD of the company’s Africa and Middle East business in May 2009.
One of the primary reasons for the deployment of Aetna’s Online Wellness Center is the preponderance of Cancer throughout the region. Currently, cancer is the second leading cause of mortality worldwide, and responsible for a third of deaths in the United Arab Emirates. Aetna’s Online Wellness Center now gives policyholders in the Middle East and Africa the ability to actively manage their healthcare in light of worsening health trends; something which Aetna hopes will promote healthy lifestyles and living throughout the region.
Insurance Companies Mentioned
Founded in 1853, Aetna is one of the leading health insurance companies in the USA. Continually working on innovating and improving healthcare and services for their policyholders, Aetna is committed to providing comprehensive insurance coverage for American citizens.
Aetna Global Benefits:
The international health insurance arm of Aetna, AGB is able to cater to the needs of expatriates located around the globe. With innovative policies, and dedication to service, Aetna Global Benefits exemplifies the commitment to the customer shown by their parent company.
Jan
9
The Recession and Insurance
Filed Under Expat Insurance, Health Insurance, Healthcare, International Healthcare, Medical Insurance, UAE Insurance, United Kingdom | 2 Comments
With news outlets broadcasting dire predictions about the financial downturn like a frothy-mouthed preacher on the apocalypse, we feel it’s time to take a look at how people think the recession will affect insurance. With this in mind, we’ll take a look at projections about how insurers may fare, how your premium could shape up, and other worries and notable points to keep in your head moving forward.
Views on how the insurance industry will deal with the financial climate are a decidedly mixed bag. Larger, more established insurance companies are expected to do well, such as more diversified health insurers. Their size, balance sheets, and diversity of both product and geography are believed to allow a degree of protection from the need to boost operating earnings during the down times. Considering that the international private medical insurance market posted growth rates of around 20% or more for 2008 it’s hard to imagine some of the larger companies needing to start penny-pinching policies which would drive away customers. Combining their growth rates with their long-running operational stability and ratings agencies’ inclination to keep decently performing insurance companies at a favorable rating, and we will hopefully see some benefits for policyholders, not just shareholders. After all, the acceptable balance sheets and relative operating stability mean that your insurer stays in business and keeps offering your plan, plus there’s always the hope that with less of a need to increase earnings and squeeze margins, there may be less pressure to increase your premiums. However, given that insurance premiums have gone up 119% in the last 9 years, don’t hold your breath.
There are also those who believe that the world’s financial nose dive will be a boon to insurers in the international health insurance markets, and their reason is that during recessions, people are more open to traveling to other countries in order to find job openings. With more and more businesses extending their operations into new geographic areas, not only are people more willing to travel to foreign countries for jobs, but companies embracing globalization are increasingly opening branch offices and sending out local staff to manage new operations. This is seen as a potential spike in demand for expatriate insurance products both for individuals and companies. If this is indeed the case, then there are a number of ways this could affect your current policy or your plan to get one. One worry is that the increased demand for international health insurance will lead to increased premiums due to a burgeoning number of clients and the need to cover the increase in claims. I find this assertion extremely dubious, but resisted the temptation to file it under wild conjecture and speculation.
Most international health insurance products are community-rated, which means that their premiums are based on your age and area of cover, and the factors calculated for your premium such as medical inflation, claims ratios from the previous year’s age group are not linked to the number of policyholders in the plan. Simply put, an increase in people paying premiums does not alter the cost of care, or your likelihood of making a claim, and therefore is a highly unlikely reason for an increase in your premiums, so you can rest easy on that count.
Another issue that was raised by some spectators, such as those at the web publication for expatriates, Shelter Offshore, also think that with increased demand for insurance products geared towards expatriates, insurers may become a little choosier about who they will accept for coverage. In contrast with the other claim, this may actually be possible, but then again with tighter budgets all around it would be hard to imagine insurers becoming overly-picky and denying coverage to reasonable applicants who can always look for another policy.
So if the insurance companies seem to at least be lurching by in these troubled days, what about the prospects for your ever increasing premiums? One piece of good news is that with the recession in full swing, it has effectively put a damper on the inflating cost of care. With costs for medical treatments, tests and drugs falling in line with the downward turn in the economy, it should mean that these items won’t be consuming an increasingly large chunk out of insurers’ margins, alleviating some of the need to push up the cost of premiums. Although one problem in at least some sectors has been that during the financial debacle some private insurers’ more risky investments have taken a hit in the market downturn, effectively reducing the amount of cash and assets they have on hand to help pay out claims.
For example, Australia’s private medical insurers have put in a request to the government to allow them to raise their premiums on private health policies. Some of the investments made by the private health funds took a large hit, and the funds now say they will need to find $600 million Australian dollars to make up for the losses, and the plan is to do it through premiums. One firm, HBF is said to have lost approximately $56 million Australian dollars, while another company, MBF, lost about half of that. While this just highlights one geographic sector’s issues, it is seen to be fairly widespread given that at least some private insurers from every walk of life around the globe have taken a hit on their investments with AIG probably being hit the hardest. All in all it’s hard to say for sure whether or not the recession will have a direct and immediate effect on premium rates. While investments were hit, it’s difficult to see how much the decreased rate of medical inflation will contribute to staying the rise of premiums. Add into the equation the fact that many countries are deciding to invest large amounts of money in their public health systems and infrastructure could have interesting effects on premium rates as well.
One thing that has been made clear from reading recent news and stories is that healthcare systems and rules around the world are in a state of change. Highlighting the cases of Bahrain and the UAE, there is a growing trend in some countries to consider enacting rules that make health insurance for expatriates compulsory, meaning that if you are traveling into the country, you must have health insurance. If you do not, you must buy an insurance policy on the spot or possibly be refused entrance into the country, and standing in an airport is not the optimal place to shop for insurance. Additionally, in some countries like Germany, if you do not have health insurance, you may not be able to receive treatment. With this in mind, it is important that even in the tough times it is, at best, inadvisable to neglect paying your health insurance premiums. While the payments may be hard to part with if money is tight, should your cover lapse and there is an accident or an illness, depending on where you are, the best case scenario may end up being financial bankruptcy from medical bills. As for the worst case, it really is no fun having your health disintegrate and possibly die because your lack of insurance precluded you from receiving treatment.
Should you be looking for insurance, I cannot possibly stress the importance of shopping around for the best comparison in quotes. With the shifting sands of business and finance, there are subtle changes in the major insurers which will affect how they will be pricing their insurance products, so it is in your best interests to either canvas the major insurers to find competitive quotes and coverage details or contact a broker who deals with a wide variety of insurers’ products.
Aug
13
Health Insurance Reforms Abound
Filed Under Expat Insurance, Health Insurance, Healthcare, International Healthcare, UAE Insurance | Leave a Comment
It seems that in the current climate of medical inflation many countries around the world are growing increasingly concerned with the ability of visitors to use, and perhaps even abuse, the medical facilities and hospitals in their destination. One of the first places in the world to institute restrictions on visitors receiving medical treatment was
Any visitor wishing to enter
Essentially this reform could be viewed as an attempt by
The obvious question here is why? Its quite simple really. The government of
In an age where medical inflation is becoming a global issue, where hospital overcrowding is not just a ‘poor nation’ problem, and where an inability to afford medical is the number one cause for personal bankruptcy in the USA, we may see this type of ‘automatic’ protection legislation being passed in other nations. Even at a time when places like
That is, unless you have an international health insurance policy….