General Arab Insurance Federation meet proposes coverage of natural disasters
The 34th Conference of General Arab Insurance Federation (GAIF), which commenced on Monday in Muscat, recommended that the insurance sector in the region works on coverage to mitigate natural calamities.
Addressing the opening day of the three-day conference, Chakib Abouzaid, Secretary-general of GAIF, said the calamities that struck the Arab region in 2023 exposed the lack of insurance coverage. “If we exclude one or two cases, all Arab countries remain exposed to natural catastrophes without the minimum insurance coverage,” he said.
“Financial inclusion and sustainability are no longer an intellectual luxury, but rather a necessity and a national duty and social responsibility for us. This calls for a radical change and ensuring that we provide healthcare coverage for everyone, develop agricultural insurance, enhance microinsurance, work on creating coverage to mitigate natural catastrophes, and ensure decent retirement pension through insurance and savings.”
Hosted by Oman Insurance Association in collaboration with GAIF under the auspices of H H Dr Kamil bin Fahd bin Mahmoud al Said, Secretary-general of Secretariat-general of the Council of Ministers, the conference is seeing participation of over 2,200 industry professionals.
The theme of this year’s conference – ‘For a more sustainable and comprehensive Arab insurance industry: Engaging in the artificial intelligence revolution’ - underscores the sector's ambition to integrate advanced technological innovations.
Highlighting the significant growth opportunities within Arab economies for the insurance sector, Ahmed al Maamari, Executive Vice-president of Capital Market Authority, pointed out the current underutilisation of the sector in contributing to the gross domestic product of regional countries, attributing this to a substantial protection gap from risks such as climate change, natural disasters and health issues.
Maamari emphasised that the existing gap indicates vast opportunities for the sector's expansion alongside the economic developments in the region, which necessitate enhanced insurance services.
Mustafa Ahmed Salman, Chairman of Oman Chamber of Commerce and Industry’s Finance and Insurance Committee, drew attention to the need of strengthening ties and cooperation within the Arab insurance markets. He noted the promising outlook of Oman's insurance market, highlighting its rapid growth and significant contribution to the nation's GDP, which stood at 1.23% in 2022. Growth in insurance premiums grew 13% year-on-year, with the capital of insurance increasing 8.46% from 2021.
The conference shed light on the Arab insurance sector's growth, which has kept pace with economic developments in the region. According to the Arab Monetary Fund, the total value of the insurance market in Arab countries exceeded Us$40.9bn at the end of 2021, marking a growth of 1.8% from the previous year.
However, the insurance premium to GDP ratio in these countries remains low at 1.9%, indicating the need for continued development efforts in the sector.
“This edition of the conference continues the dialogue on fostering cooperation and empowering the insurance sector to support broader developmental goals, with particular focus on embracing digital transformation and AI,” Salman added.
The calamities that struck the Arab region in 2023 exposed the lack of insurance coverage, calling for a radical change
CHAKIB ABOUZAID