A recently published report by the Arab Insurance Companies Association shows that 383 insurance and reinsurance firms are presently operating in the Arab World. The report estimates at six billion dollars the total value of insurance installments in this part of the world.
The report also indicated that these insurance companies enjoyed a solid savings base. The investments of the insurance and reinsurance firms in Jordan, Egypt, the UAE, Tunisia, Algeria, Syria, Kuwait, Libya and Oman stands at $7.5 billion, Al-Watan reported.
The report further shows that the main disadvantage of the operating insurance and reinsurance firms in the Arab World is their limited capital base. The report clarified that the capital of 65 percent of these firms stands at less than seven million dollars.
Another problem faced by the Arab insurance and reinsurance companies is that they limit themselves to marketing traditional insurance products. Nevertheless, these firms’ main strong point is the fact that the region has not experienced natural disasters in the recent past and the massive construction of new manufacturing facilities, fleets and housing units in the region. — (menareport.com)
© 2001 Mena Report (www.menareport.com)
