Life Insurance Seminar
On November 18, 2009, Saudi held its first Market Seminar for insurance companies in Saudi Arabia. The focus of this first Seminar was Life Insurance and Reinsurance in KSA, and it was attended by 37 representatives of 22 companies in the Kingdom, including 2 representatives of SAMA.
 The striking development and huge potential of the life insurance market in the Kingdom was the initial highlight of the presentation by Ahmed Selim (Saudi Re’s Life Underwriter) and Ralph ElFadl (the Company’s Chief Risk Officer). The Life insurance market in Saudi Arabia is expected to grow over 200% by 2012 (albeit from a very small base), and should (at that point) represent approximately 9% of the total insurance premiums in KSA.
Mr. Selim and Mr. ElFadl noted that most products are now relatively simple and basic life insurance products, reflecting the youth of the market. Only a few more complicated products (such as Unit Linked business) have been sold, usually to Bank-related companies. Group life makes up the largest portion of the business, due to the fact that companies are beginning to provide a life insurance benefit to their employees – who have yet to purchase individual policies. Some companies are now developing a sales force to promote the sale of individual life policies, and this type of product is expected to grow substantially over the next few years.
 The challenges involved in writing Life insurance business in KSA were then reviewed by the two Saudi Re presenters. These involve product design, licensing issues, marketing, underwriting / pricing, administration and claims handling. Each of these challenges was looked at in detail and the assistance that Saudi Re can offer to overcome each challenge was also discussed. It was made clear that this assistance is very much in the background – and that the companies remain in primary contact with their clients.
An active discussion followed during which the various challenges were talked about, and more details regarding the “behind-the-scenes” assistance that Saudi Re can give in product design, underwriting and marketing was provided.
The group then heard from Robert Kotzur of Munich Re, who had a very interesting presentation regarding the “whys” and “hows” of life underwriting in general – and how Munich Re does their life underwriting. The use of risk selection and pricing in the underwriting process were explored, as well as the function of physical examinations and financial questionnaires.
Mr. Kotzur then demonstrated Munich Re’s online life underwriting service, which was very interesting to all who attended.
|
