Auto Insurance companies in MENA region

1.1 MENA region countries

 Algeria
 Bahrain
 Egypt
 Iran
 Iraq
 Israel
 Jordan
 Kuwait
 Lebanon
 Libya
 Morocco
 Oman
 Palestine
 Quatar
 Saudi Arabia
 Syria
 Tunisia
 Turkey
 United Arab Emirates
 Yemen

1.2 Number of Auto-Insurance companies in MENA countries and

number of policyholders
Algeria – 12 companies, Around 3.320.000 policyholders
Bahrain – 20 companies, Around 604.350 policyholders.
Egypt – 18 companies, Around 4.000.000 policyholders
Iran – 29 companies, Around 5.950.000 policyholders
Iraq – 30 companies, Around 526.150 policyholders
Israel – 28 companies, Around 2.700.000 policyholders
Jordan – 24 companies, Around 3.330.000 policyholders
Kuwait – 42 companies, Around 1.785.000 policyholders
Lebanon – 52 companies, Around 70.000 policyholders
Libya – 18 companies, Around 2.800.000 policyholders
Morocco – 19 companies, Around 2.380.000 policyholders
Oman – 20 companies, Around 1.317.000 policyholders
Palestine – 7 companies, Around 1.500.000 policyholders
Qatar – 12 companies, Around 1.349.642 policyholders
Saudi Arabia – 32 companies, Around 5.100.000 policyholders
Syria – 11 companies, Around 2.000.000 policyholders
Tunisia – 22 companies, Around 1.650.000 policyholders
Turkey – 39 companies, Around 18.300.000 policyholders
United Arab Emirates – 62 companies, Around 2.550.000 policyholders
Yemen – 12 companies, Around 977.000 policyholders

2.1 Country Analysis

1. UAE
Motor insurance was affected by changes introduced by the Insurance Authority
UAE in 2018 – including a unified wording, deductibles, and maximum tariff rates –
which have improved both the bottom- and top-line performance of most motor
insurers, many of which are looking to expand their business. Some companies
have been able to secure comprehensive coverage for vehicles up to 15-years old,
and also to increase limits for third-party liability coverage up to US$1 million.
2. Saudi Arabia
Motor insurance comprises an estimated 34% of gross written insurance premiums
in the Saudi Arabian market1. The recent decision to allow women to hold driving
licences is likely to boost demand for motor insurance further. Since an intervention
by the Saudi Arabian Monetary Agency (SAMA) to base prices on actuarial ratings,
there has been a substantial rise in premiums. At the beginning of 2018, price
reductions were controlled via the introduction of a compulsory “no-claims discount”
3. Bahrain
Motor insurance rates are generally increasing due to increased claims.
4. Egypt
Many insurers have revisited their rating models for motor insurance, resulting in
some rate increases. Rates are stable in some other cases where, for example, a
driver has a clean loss record for several years. Motor-vehicle and spare-part prices
have increased dramatically in recent years, due to the devaluation of the Egyptian
pound. The high number of accidents occurring – due to an increased population
and high vehicle purchase rate – has compelled insurers to re-evaluate their rating
models.
5. Oman
Motor insurance is one of the largest types of insurance in Oman by net premium.
Volume of claims remains high but, due to large premium pools and heavy
competition, premium rates have generally been decreasing in recent years.
6. Qatar
The motor insurance market remains competitive, especially fleet insurance, where
some companies are experiencing significant rate decreases. Inflationary claims
trends are a challenge for motor insurers, primarily due to the increased cost of
spare parts and supplies caused by the current diplomatic blockade with
neighbouring Gulf Cooperation Council (GCC) countries. One insurer estimates an
annual increase of 30% in costs. However, increased competition among insurers is
expected to sustain the downward pressure on rates for the short term.
7. Tunisia
Economic conditions remained challenging in Tunisia in 2016. The country’s gross
domestic product (GDP) expanded by a mere 1.0 %, slightly down from 1.1 % in the
prior year. Unemployment stayed at a high 15.5% with young graduates struggling
particularly hard to access the labour market. Inflation receded to 3.7 %, after 4.9 %
in 2015, whilst the Tunisian Dinar depreciated against the US Dollar and the Euro by
more than 8%. Going forward, Tunisia’s economy is expected to stabilize and
accelerate its growth rate to close to 4% for the years 2017 – 2021, roughly in line
with the global average according to the IMF. The country’s insurance sector
outperformed the general economy in 2016. According to the Tunisian regulator, the
Comité Général des Assurances, premiums written expanded by 10.6 % to TD1.8
billion (US$ 720 million), up from a 7.9 % growth in 2015. On average, premiums
expanded by 9.5% annually from 2011 to 2016. As a result, insurance penetration
increased to 2.04%, up from 1.96% in 2015 and slightly above the average for the
MENA region – but still at less than a third of the global average. Within MENA
Tunisia’s insurance penetration ranks 7th. Within the Maghreb region it is only
topped by Morocco’s 3.5%. Premium growth was driven by life insurance, which
expanded by 24.5% in 2016, up from 11.8% in 2015. The life sector has steadily
increased its relevance in the overall portfolio mix of the Tunisian insurance industry.
Over the past ten years, its share in overall premiums has doubled to roughly 20% in
2016, which is still considerably below the global average of 55%. Motor remains the
most prominent line of business with a share of 45.8% of total premiums. In 2016
this line grew by 8.7%, slightly below the overall market. However, motor claims rose
sharply by 12.4% in 2016, increasing the share of motor claims among total claims
to 57.7%. As a result, overall technical profits for Tunisia’s insurance sector declined
by 8% to TD122 million (US$ 49 million), down from TD133 million (US$ 53 million)
in 2015. According to the Comité Général des Assurances, the country’s insurance
market consists of 22 onshore insurers including Tunis Re and six enterprises
regarded as off-shore. In 2016 the top five insurers had a combined market share of
50 %. Five insurers operate in the life segment and three insurers are takaful
providers.

3.1 Key Pulse Readings, financial analysis

4.1 Market overview

MENA GDP growth falls short of global average
This overview covers 14 countries in the Middle East and North Africa: Algeria,
Bahrain, Egypt, Iran, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi
Arabia, Tunisia, Turkey and the United Arab Emirates. The country selection
(hereafter referred to as MENA) reflects the availability of internationally comparable
insurance data. In 2017, these 14 countries, with a total population of about 412
million, generated a combined GDP of around US$ 3.4 trillion, which is equivalent to
4.3% of the world’s total. At an inflation-adjusted growth rate of 3.3% per annum
between 2012 and 2017, the region’s economies (excluding Turkey) grew at a
slightly slower pace than the global economy (3.5%). Going forward, this pattern is
expected to persist, with the region trailing slightly behind the global economy’s
projected growth (see chart 1). Reduced public spending as a result of lower oil
prices and unresolved regional conflicts will continue to weigh on the MENA region’s
near-term economic prospects.

MENA insurance penetration on the rise

Income per capita levels in the MENA region as a whole are similar to the global
average. The region’s insurance penetration levels, however, remain extraordinarily
low. In 2016, insurance premiums accounted for just 1.7% of GDP, slightly more
than a quarter of the global average. Encouragingly, this gap is narrowing as MENA
insurance markets outpace regional GDP growth. Between 2011 and 2016, total
non-life and life insurance premium volumes in the region expanded more than twice
as fast as GDP (see charts 3 and 4). Going forward, this trend is expected to
continue. Swiss Re Institute (Global Insurance Review 2016 and Outlook 2017/18)
forecasts real annual premium growth of more than 5% for 2018 and 2019, higher
than the International Monetary Fund’s economic growth forecast for the region.
According to chart 2, at a share of 16%, life business continues to play a relatively
minor role in the MENA region (in comparison with its global share of 55%)
5.1 Market Trends
The Pulse found that 46% (up from 43%) of respondents believe the overall state of
insurance regulation in the region to be adequate. The share of participants stating
an ‘inadequate’ verdict declined from 33% to 27%. This more favourable
assessment reflects continued progress towards introducing solvency margins or
even risk-based solvency rules, especially in the UAE, following the example of the
Saudi Arabian Monetary Agency (SAMA). By enforcing unified policy wordings in
combination with actuarial pricing and reserving requirements, regulators are making
an increasingly positive contribution to the insurance markets’ overall stability and
health. However, some executives raised concerns over the capacity of the region’s
regulatory authorities to implement new complex regimes, given the lack of qualified
staff. In addition, some interviewees felt that regulators have no clear vision of the
insurance industry’s future role and, rather than setting specific rules and adding
ever more onerous and intrusive compliance requirements, they should focus on a
principlesbased approach founded upon a risk-based capital regime. Other
executives expressed concerns about a lacking or inconsistent enforcement of
regulatory and supervisory regimes which creates strategic and operating
uncertainty. In general, the region remains highly heterogeneous as far as regulatory
sophistication is concerned, ranging from relatively effective and sophisticated
regimes in Bahrain, Morocco (coming close to Solvency II), Saudi Arabia and the
UAE, to rudimentary and/or insufficiently enforced frameworks in parts of the Gulf
region.
 6.1 List of TOP 50 competitors with their growth rate
Rank 2017/2018
Companies Country 2018 2017
2018 evolution *

Qatar Insurance
1 Qatar 3 460 977 300 3 179 292 710 8.12%
Company

2 Bupa Arabia Saudi Arabia 2 280 527 000 2 063 154 000 10.78%

3 Tawuniya Saudi Arabia 2 039 448 000 2 242 899 000 -9.10%

United Arab
4 Daman Health 1 370 000 000 1 498 860 000 -8.59%
Emirates

Gulf Insurance
5 Kuwait 1 101 096 689 1 006 586 200 10.16%
Group

Oman Insurance United Arab

6 1 007 225 836 1 012 105 200 -0.51%
Co Emirates

Orient United Arab

7 1 001 409 060 1 096 149 400 -8.67%
Insurance Emirates

8 Wafa Assurance Morocco 875 272 000 857 304 000 3.99%

United Arab
9 ADNIC 792 161 669 719 505 443 10.07%
Emirates

Al Rajihi
10 Saudi Arabia 791 600 000 852 019 000 -6.89%
Takaful

11 RMA Morocco 684 209 000 662 877 000 5.13%

12 MedGulf Saudi Arabia 550 914 000 711 246 000 -22.37%

SAHAM
13 Morocco 546 138 000 516 099 000 7.78%
Assurance

14 Misr Insurance Egypt 477 572 644 389 363 875 21.09%

Mutulle
15 Morocco 444 694 000 414 125 000 9.37%
Taamine Chaabi

16 Axa Assurance Morocco 442 404 000 437 832 000 2.92%

United Arab
17 Al Ain Al Ahlia 412 336 307 377 948 883 9.07%
Emirates

Axa
18 Saudi Arabia 384 902 000 400 060 000 -3.58%
Cooperative

National Life
19 Oman 350 515 000 298 311 000 17.45%
Insurance

20 Walaa Saudi Arabia 294 151 000 294 102 000 0.24%

21 Salama UAE United Arab 289 412 119 219 944 677 31.55%
 Emirates

Emirates United Arab

22 284 067 459 293 277 535 -3.17%
Insurance Emirates

Al Ahleia
23 Kuwait 275 424 664 237 728 478 16.67%
Insurance

United Arab
24 Union UAE 259 175 719 285 597 140 -9.27%
Emirates

25 ATLANTA Morocco 254 374 000 241 872 000 7.12%

26 SAICO Saudi Arabia 252 898 000 214 661 000 18.07%

27 Trade Union Saudi Arabia 247 515 000 221 777 000 11.85%

28 Allianz Saudi Arabia 231 793 000 246 933 000 -5.92%

29 SAA Algeria 231 673 000 228 141 000 20.10%

30 Misr Life Egypt 221 813 999 182 175 918 20.21%

Bahrain Kuwait
31 Bahrain 215 745 828 157 168 103 37.14%
Insurance

32 SANAD Morocco 211 462 000 204 565 000 5.29%

33 CAAT Algeria 201 935 000 198 901 000 17.52%

34 Salama Saudi Arabia 195 660 000 200 284 000 -2.09%

35 Malath Saudi Arabia 194 087 000 193 958 000 0.29%

36 Marocaine Vie Morocco 190 874 000 183 563 000 5.91%

37 Wataniya Saudi Arabia 189 628 000 154 397 000 23.09%

Doha Insurance
38 Qatar 171 299 410 148 123 148 14.86%
(QSC)

39 Arab Shield Saudi Arabia 166 408 000 158 233 000 5.40%

United Arab
40 Takaful Emarat 163 108 185 158 860 856 2.65%
Emirates

Qatar General
41 Qatar 150 070 128 137 764 897 8.19%
Insurance

42 MCMA Morocco 148 318 000 135 170 000 11.76%

43 ALLIANZ SNA Libanon 145 073 000 140 072 000 3.57%

Allianz
44 Assurance Morocco 142 944 000 132 688 000 9.73%
Maroc

Al Buhaira
United Arab
45 National 134 941 164 146 280 603 -7.78%
Emirates
Insurance
 Allied
Cooperative
46 Saudi Arabia 133 108 000 114 717 000 16.29%
Insurance
Group (ACIG)

47 Wafa Saudi Arabia 133 104 000 133 399 000 0.00%

48 MetLife Egypt Egypt 132 494 782 119 783 378 9.20%

49 CAAR Algeria 127 182 000 130 324 000 11.03%

50 ALICO Libanon 123 352 000 120 859 000 2.06%

25 126 494 24 471 058

Grand total    
962 445

7.1 MENA countries through COVID-19 period

The region’s economies are projected to contract by 5.2% in 2020, which is 4.1
percentage points below the forecast in April 2020, and 7.8 percentage points worse
than that of October 2019, reflecting an increasingly pessimistic outlook for the regional
economy. The region is expected to recover only partially in 2021.

The outlook for MENA’s current account and fiscal balances also deteriorated sharply.
Driven largely by lower oil export revenue, a drop in fiscal revenue, and the large
increase in fiscal expenditure required to respond to the health crisis, the region’s
current account and fiscal balances in 2020 are forecast at -4.8% and -10.1% of GDP
respectively, much worse than the forecasts in October 2019. Public debt is projected to
rise significantly in the next few years, from about 45% of GDP in 2019 to 58% in 2022.

In dealing with the COVID-19 pandemic, the top priority is responding to the health
crisis while aiming to preserve consumption and production capabilities. If financially
feasible, countries should postpone fiscal consolidation until recovery is well underway.
Reallocating spending to deal with the immediate impacts of the crisis and making such
spending more efficient, for example, by proactively reducing leakages to ensure relief
measures reach the intended beneficiaries can help create fiscal space. In the medium
run, there is a strong need to boost productivity to restore growth and stabilize the debt.
A powerful way to do that would be to pursue profound institutional reforms that would
reshape the role of the state, promote fair competition, accelerate the adoption digital
technology, and pursue regional integration, which is the focus of this report.

Countries in the Middle East and North Africa (MENA) face both a COVID-19 pandemic
and a collapse in oil prices. Trade volumes are estimated to have fallen sharply.
Preliminary data for April from the United Nations Conference on Trade and
Development suggests a roughly 40% decline in trade for the region. The downturn is
expected to accelerate in sectors with strong value chains, particularly in electronics
and automotive products.
Trade openness can be significant in achieving inclusiveness. However, to promote
growth that benefits all segments of society, trade reforms must move in parallel with
other policy reforms. The benefits of trade openness might otherwise be canceled by
other economic and social measures. The contributions of trade openness to inclusive
growth can be uneven and cannot be understood without considering how it affects all
factors of production, benefiting some and hurting others.