Summit opens on kingdom's insurance boom ...

Huge growth potential seen in Saudi Arabia?s newly liberalised market.

Saudi Arabia?s newly liberalised insurance market comes under the spotlight this week with estimates that a market currently worth around $1.5 billion annually could soar to $8 billion within 10 years.

An elite speaker faculty of key international and regional professionals will be taking part in the 2nd Saudi Insurance Summit at the Jeddah Hilton Hotel 29-30 October 2007. The Summit, taking place with the approval of the Governor of Jeddah Prince Mishaal bin Majed bin Abdulaziz, is expected to be attended by more than 300 insurance professionals, regulators and key industry players.

The Saudi Arabian Monetary Agency recently reported the insurance market grew 35% in 2006 alone. Gross premiums rose to $1.8 billion from $1.3 billion in 2005. General insurance premiums, which represented 65% of the insurance market, increased by 25% to $1.2 billion in 2006 compared with $959 million in the previous year.

Protection and savings insurance premiums, which represented a mere 3% of the insurance market, went up by almost 16% to $59 million in 2006 compared with $51 million in 2005.

But it is health insurance that is attracting the most attention ? representing 32% of the insurance market ? and saw premiums increased by 57% to $589 million in 2006 compared with $375 million in 2005. This growth is mainly driven by the decision to make health insurance mandatory for all expatriate workers as well as favourable economic conditions.

New laws require the kingdom?s seven million expatriates to prove that health insurance cover is provided to them by their employers. The first phase demanded compliance from companies with over 500 employees by July this year. Remaining companies have until March 2008 to ensure their workers are covered.

The opening up of Saudi Arabia?s insurance sectors has injected hundreds of millions of dollars into the market with more to come through new company licensing and public offerings.

All insurance companies operating in the Saudi market must obtain a license by March 2008 or cease operations. The capital requirements for gaining a license are $26.67 million for insurers and $53.33 million for reinsurers with an additional 10% statutory deposit. Companies are also obliged to float at least 25% of their shares on the Tadawul and meet other regulatory requirements before receiving a licence.

At present, 18 companies have been licensed, with 24 more expecting to be granted approval.

?The new laws have led many in the industry to forecast excellent growth in the non-life sector in Saudi Arabia with predictions of $4 billion growth by 2009 being touted,? said Deep Marwaha, Senior Conference Manager, of IIR Middle East, organisers of the 2nd Saudi Insurance Summit

?Within this high growth market, the landscape is shifting dramatically,? said Marwaha. ?The 2nd Saudi Insurance Summit aims to ensure that key players keep abreast of new developments in what is a breakneck business environment.?

In addition to the two-day Summit, there are two practical workshops. The first is on the principles of Islamic insurance ? Takaful structures and Shari?ah compliance, conducted by Rodney Wilson, Director of Postgraduate Studies and Professor of Economics at the University of Durham?s School of Government and International Affairs, UK.

A post Summit workshop ? Mind the Gap! How Can We Bridge the Insurance Skill Shortage? ? will be led by Ian Wilson, Head of Insurance Programmes at the Institute of Banking, Saudi Arabian Monetary Agency.

Among more than 30 leading international and regional speakers taking part in the Summit will be Dr Muhammad Al Jasser, Vice Governor of the Saudi Arabian Monetary Agency; Ali Al Subaihin, CEO of the Company for Co-operative Insurance (NCCI); Brad Bourland, Chief Economist of Jadwa Investment Company, Saudi Arabia; Tal Hisham Nazer, Managing Director BUPA Middle East; and Dawood Taylor, Group Head, Takaful Ta?awuni, Bank Aljazira, Saudi Arabia.

NCCI are diamond sponsors of the Summit; Medgulf and Bank Aljazira are platinum sponsors; Takaful Re is a gold sponsor; and Salama Co-operative Insurance Company and HiQSys Saudi are silver sponsors.

Source: http://mainefarmsforthefuture.com/summit-opens-on-kingdoms-insurance-boom

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