The Insurance Sector in the Middle East and North Africa : Challenges and Development Agenda
This paper studies the causes of the low development of the insurance sector in the Middle East and North African (MENA) region, particularly for long term insurance. The paper shows that life and non-life premiums, as well as assets, are very low...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110324090347 http://hdl.handle.net/10986/3374 |
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okr-10986-3374 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCIDENT INSURANCE ACCOUNTING ACCOUNTING STANDARDS ADMINISTRATIVE AUTONOMY AGENTS ALLOCATION ALLOWANCES AMOUNT OF CAPITAL ARBITRATION ARBITRATION CLAUSES ASSETS ASSURANCE AUDITS BANK BRANCHES BANKRUPTCY BOND BOND MARKETS BROKER CAPITAL MARKET CAPITAL REQUIREMENTS CAPITALIZATION CASH FLOW CASH SURRENDER VALUE CASUALTY INSURANCE CATASTROPHE INSURANCE CENTRAL BANK COINSURANCE COMMERCIAL INSURANCE COMMISSIONS COMPENSATION COMPETITIVENESS COMPULSORY INSURANCE CONSUMER CREDIT CONSUMER PROTECTION CONSUMERS CONTRACTUAL SAVINGS CONVENTIONAL INSURANCE CORPORATE GOVERNANCE COVERAGE CREDIBILITY CREDIT GUARANTEES CREDIT INSURANCE CREDIT MARKETS CREDIT RATINGS DEBT DEMOGRAPHIC DEVELOPING COUNTRIES DISASTERS DISPUTE RESOLUTION DISPUTES RESOLUTION ECONOMIC DEVELOPMENT ECONOMIC GROWTH EFFICIENCY GAINS EMERGING MARKET EMERGING MARKETS ENTRY REQUIREMENTS FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL PRODUCTS FINANCIAL REPORTING FINANCIAL SECTOR FINANCIAL SYSTEM FOREIGN HOLDINGS FOREIGN INSURERS FOREIGN INVESTMENTS FRAUD GLOBAL INSURANCE GOVERNANCE ISSUES GOVERNMENT GUARANTEES GOVERNMENT SUPPORT GUARANTEE FUNDS HEALTH INSURANCE HOLDING HUMAN CAPITAL HUMAN RESOURCES IMPORTS INCOME LEVEL INCOME STREAM INCOMES INDEMNITY INDUSTRIAL COUNTRIES INFLATION INSPECTIONS INSURANCE INSURANCE BROKERS INSURANCE COMPANIES INSURANCE COMPANY INSURANCE INDUSTRY INSURANCE MARKET INSURANCE MARKETS INSURANCE PENETRATION INSURANCE PREMIUMS INSURANCE PRODUCTS INSURANCE SECTOR INSURANCE SUPERVISION INSURANCE SUPERVISORS INSURANCE SYSTEM INSURANCES INSURER INSURER SOLVENCY INSURERS INTERNAL CONTROLS INTERNATIONAL BANK INTERNATIONAL BEST PRACTICE INTERNATIONAL STANDARDS INVESTMENT CLIMATE INVESTMENT CONTRACTS INVESTMENT FUND INVESTMENT HORIZONS INVESTMENT PRODUCTS INVESTMENT REQUIREMENTS INVESTMENT VEHICLES IPO ISLAMIC BANKING ISLAMIC BANKS ISLAMIC FINANCIAL SERVICES ISLAMIC INSURANCE LACK OF TRANSPARENCY LAWS LEGAL JURISDICTIONS LEGAL PROTECTION LENDERS LEVIES LEVY LIBERALIZATION LIFE INSURANCE LIFE INSURANCE INDUSTRY LIFE INSURANCE POLICY LIFE INSURANCE PREMIUMS LIFE INSURERS LIQUIDATION LOAN LOCAL CAPACITY LOCAL MARKETS LONG TERM SAVINGS LONG-TERM FINANCE MARKET DEVELOPMENT MARKET FRAGMENTATION MARKET PLAYERS MARKET SHARE MARKET SHARES MARKET STRUCTURE MARKET STRUCTURES MINIMUM CAPITAL REQUIREMENTS MONETARY AUTHORITY MONOPOLIES MONOPOLY MORAL HAZARD MORTGAGE MORTGAGE INSURANCE MORTGAGE LENDING MORTGAGE LOANS MORTGAGE MARKET MORTGAGE MARKETS MOTOR INSURANCE MOTOR THIRD PARTY LIABILITY INSURANCE NATURAL DISASTERS NEW MARKETS NON LIFE INSURANCE NON-LIFE INSURANCE OUTPUT OVERHEAD COSTS PENETRATION RATES PENSION PENSIONS PER CAPITA INCOME PERSONAL LOANS POLICY MAKERS POLICYHOLDERS PORTFOLIO PORTFOLIOS PREMIUM REVENUES PRICE COMPETITION PRIVATE SECTOR DEVELOPMENT PRIVATIZATION PROFESSIONAL LIABILITY PROGRAMS PROPERTY INSURANCE PROTECTION OF POLICYHOLDERS PRUDENTIAL STANDARDS RATES RECIPROCITY REFORM PROGRAM REGULATORS REGULATORY CAPACITY REGULATORY PRACTICES REINSURANCE REINSURERS RENEWALS REPUTATION RESERVE RESERVE REQUIREMENTS RESERVES RETURNS RISK AVERSION RISK CAPITAL RISK MANAGEMENT RISK POOLING RISK PREMIUMS SAVINGS SECURITIES SETTLEMENT SHAREHOLDERS SOCIAL INSURANCE SYSTEM SOCIAL PROTECTION SOLVENCY SOLVENCY REQUIREMENTS STAMP DUTY SUPERVISORY AGENCY SUPERVISORY AUTHORITY SUPERVISORY FRAMEWORK SUPERVISORY REGIME TAX TAX POLICY TAX REGIME TAX REGIMES TAX RULES TERMS OF CAPITAL TORT TOTAL COSTS TRADE CREDIT TRADING TURNOVER UNDERWRITERS UNDERWRITING VALUE OF COLLATERAL WEAK CORPORATE GOVERNANCE WEALTH TAX |
| spellingShingle |
ACCIDENT INSURANCE ACCOUNTING ACCOUNTING STANDARDS ADMINISTRATIVE AUTONOMY AGENTS ALLOCATION ALLOWANCES AMOUNT OF CAPITAL ARBITRATION ARBITRATION CLAUSES ASSETS ASSURANCE AUDITS BANK BRANCHES BANKRUPTCY BOND BOND MARKETS BROKER CAPITAL MARKET CAPITAL REQUIREMENTS CAPITALIZATION CASH FLOW CASH SURRENDER VALUE CASUALTY INSURANCE CATASTROPHE INSURANCE CENTRAL BANK COINSURANCE COMMERCIAL INSURANCE COMMISSIONS COMPENSATION COMPETITIVENESS COMPULSORY INSURANCE CONSUMER CREDIT CONSUMER PROTECTION CONSUMERS CONTRACTUAL SAVINGS CONVENTIONAL INSURANCE CORPORATE GOVERNANCE COVERAGE CREDIBILITY CREDIT GUARANTEES CREDIT INSURANCE CREDIT MARKETS CREDIT RATINGS DEBT DEMOGRAPHIC DEVELOPING COUNTRIES DISASTERS DISPUTE RESOLUTION DISPUTES RESOLUTION ECONOMIC DEVELOPMENT ECONOMIC GROWTH EFFICIENCY GAINS EMERGING MARKET EMERGING MARKETS ENTRY REQUIREMENTS FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL PRODUCTS FINANCIAL REPORTING FINANCIAL SECTOR FINANCIAL SYSTEM FOREIGN HOLDINGS FOREIGN INSURERS FOREIGN INVESTMENTS FRAUD GLOBAL INSURANCE GOVERNANCE ISSUES GOVERNMENT GUARANTEES GOVERNMENT SUPPORT GUARANTEE FUNDS HEALTH INSURANCE HOLDING HUMAN CAPITAL HUMAN RESOURCES IMPORTS INCOME LEVEL INCOME STREAM INCOMES INDEMNITY INDUSTRIAL COUNTRIES INFLATION INSPECTIONS INSURANCE INSURANCE BROKERS INSURANCE COMPANIES INSURANCE COMPANY INSURANCE INDUSTRY INSURANCE MARKET INSURANCE MARKETS INSURANCE PENETRATION INSURANCE PREMIUMS INSURANCE PRODUCTS INSURANCE SECTOR INSURANCE SUPERVISION INSURANCE SUPERVISORS INSURANCE SYSTEM INSURANCES INSURER INSURER SOLVENCY INSURERS INTERNAL CONTROLS INTERNATIONAL BANK INTERNATIONAL BEST PRACTICE INTERNATIONAL STANDARDS INVESTMENT CLIMATE INVESTMENT CONTRACTS INVESTMENT FUND INVESTMENT HORIZONS INVESTMENT PRODUCTS INVESTMENT REQUIREMENTS INVESTMENT VEHICLES IPO ISLAMIC BANKING ISLAMIC BANKS ISLAMIC FINANCIAL SERVICES ISLAMIC INSURANCE LACK OF TRANSPARENCY LAWS LEGAL JURISDICTIONS LEGAL PROTECTION LENDERS LEVIES LEVY LIBERALIZATION LIFE INSURANCE LIFE INSURANCE INDUSTRY LIFE INSURANCE POLICY LIFE INSURANCE PREMIUMS LIFE INSURERS LIQUIDATION LOAN LOCAL CAPACITY LOCAL MARKETS LONG TERM SAVINGS LONG-TERM FINANCE MARKET DEVELOPMENT MARKET FRAGMENTATION MARKET PLAYERS MARKET SHARE MARKET SHARES MARKET STRUCTURE MARKET STRUCTURES MINIMUM CAPITAL REQUIREMENTS MONETARY AUTHORITY MONOPOLIES MONOPOLY MORAL HAZARD MORTGAGE MORTGAGE INSURANCE MORTGAGE LENDING MORTGAGE LOANS MORTGAGE MARKET MORTGAGE MARKETS MOTOR INSURANCE MOTOR THIRD PARTY LIABILITY INSURANCE NATURAL DISASTERS NEW MARKETS NON LIFE INSURANCE NON-LIFE INSURANCE OUTPUT OVERHEAD COSTS PENETRATION RATES PENSION PENSIONS PER CAPITA INCOME PERSONAL LOANS POLICY MAKERS POLICYHOLDERS PORTFOLIO PORTFOLIOS PREMIUM REVENUES PRICE COMPETITION PRIVATE SECTOR DEVELOPMENT PRIVATIZATION PROFESSIONAL LIABILITY PROGRAMS PROPERTY INSURANCE PROTECTION OF POLICYHOLDERS PRUDENTIAL STANDARDS RATES RECIPROCITY REFORM PROGRAM REGULATORS REGULATORY CAPACITY REGULATORY PRACTICES REINSURANCE REINSURERS RENEWALS REPUTATION RESERVE RESERVE REQUIREMENTS RESERVES RETURNS RISK AVERSION RISK CAPITAL RISK MANAGEMENT RISK POOLING RISK PREMIUMS SAVINGS SECURITIES SETTLEMENT SHAREHOLDERS SOCIAL INSURANCE SYSTEM SOCIAL PROTECTION SOLVENCY SOLVENCY REQUIREMENTS STAMP DUTY SUPERVISORY AGENCY SUPERVISORY AUTHORITY SUPERVISORY FRAMEWORK SUPERVISORY REGIME TAX TAX POLICY TAX REGIME TAX REGIMES TAX RULES TERMS OF CAPITAL TORT TOTAL COSTS TRADE CREDIT TRADING TURNOVER UNDERWRITERS UNDERWRITING VALUE OF COLLATERAL WEAK CORPORATE GOVERNANCE WEALTH TAX Lester, Rodney The Insurance Sector in the Middle East and North Africa : Challenges and Development Agenda |
| geographic_facet |
Middle East and North Africa Middle East and North Africa |
| relation |
Policy Research working paper ; no. WPS 5608 |
| description |
This paper studies the causes of the low
development of the insurance sector in the Middle East and
North African (MENA) region, particularly for long term
insurance. The paper shows that life and non-life premiums,
as well as assets, are very low relative to expected levels
given per capita income and demographic characteristics, and
examines the causes of such poor performance. There is a
wide range of factors constraining the development of the
industry, including the absence of mandatory insurance in
key areas, the predominant presence of the state in some
countries, gaps in regulation and supervision, unsupportive
tax regimes, fragmented market structures, a chronic lack of
suitably skilled people, as well as the absence of products
that conform with cultural/religious preferences, especially
in the case of life insurance. The lack of development of
the insurance sector is a matter of concern, as research
shows that the sector can contribute to both financial and
economic development. Key recommendations to accelerate the
development of the sector include wider introduction of
mandatory insurance lines that have clear positive
externalities, continuing the privatization process for
government owned insurers, employing non capital techniques
to force rationalization of insurance sectors with too many
small and inefficient players, removing tax distortions,
taking steps to stabilize motor third party liability
markets (typically the largest line of business),
strengthening reporting and disclosure, regulating
banc-assurance, improving consumer protection, further
developing Takaful long term insurance ('Family
Insurance'), and establishing regional centers of
excellence for skills development. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Lester, Rodney |
| author_facet |
Lester, Rodney |
| author_sort |
Lester, Rodney |
| title |
The Insurance Sector in the Middle East and North Africa : Challenges and Development Agenda |
| title_short |
The Insurance Sector in the Middle East and North Africa : Challenges and Development Agenda |
| title_full |
The Insurance Sector in the Middle East and North Africa : Challenges and Development Agenda |
| title_fullStr |
The Insurance Sector in the Middle East and North Africa : Challenges and Development Agenda |
| title_full_unstemmed |
The Insurance Sector in the Middle East and North Africa : Challenges and Development Agenda |
| title_sort |
insurance sector in the middle east and north africa : challenges and development agenda |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110324090347 http://hdl.handle.net/10986/3374 |
| _version_ |
1764386879284707328 |
| spelling |
okr-10986-33742021-04-23T14:02:09Z The Insurance Sector in the Middle East and North Africa : Challenges and Development Agenda Lester, Rodney ACCIDENT INSURANCE ACCOUNTING ACCOUNTING STANDARDS ADMINISTRATIVE AUTONOMY AGENTS ALLOCATION ALLOWANCES AMOUNT OF CAPITAL ARBITRATION ARBITRATION CLAUSES ASSETS ASSURANCE AUDITS BANK BRANCHES BANKRUPTCY BOND BOND MARKETS BROKER CAPITAL MARKET CAPITAL REQUIREMENTS CAPITALIZATION CASH FLOW CASH SURRENDER VALUE CASUALTY INSURANCE CATASTROPHE INSURANCE CENTRAL BANK COINSURANCE COMMERCIAL INSURANCE COMMISSIONS COMPENSATION COMPETITIVENESS COMPULSORY INSURANCE CONSUMER CREDIT CONSUMER PROTECTION CONSUMERS CONTRACTUAL SAVINGS CONVENTIONAL INSURANCE CORPORATE GOVERNANCE COVERAGE CREDIBILITY CREDIT GUARANTEES CREDIT INSURANCE CREDIT MARKETS CREDIT RATINGS DEBT DEMOGRAPHIC DEVELOPING COUNTRIES DISASTERS DISPUTE RESOLUTION DISPUTES RESOLUTION ECONOMIC DEVELOPMENT ECONOMIC GROWTH EFFICIENCY GAINS EMERGING MARKET EMERGING MARKETS ENTRY REQUIREMENTS FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL PRODUCTS FINANCIAL REPORTING FINANCIAL SECTOR FINANCIAL SYSTEM FOREIGN HOLDINGS FOREIGN INSURERS FOREIGN INVESTMENTS FRAUD GLOBAL INSURANCE GOVERNANCE ISSUES GOVERNMENT GUARANTEES GOVERNMENT SUPPORT GUARANTEE FUNDS HEALTH INSURANCE HOLDING HUMAN CAPITAL HUMAN RESOURCES IMPORTS INCOME LEVEL INCOME STREAM INCOMES INDEMNITY INDUSTRIAL COUNTRIES INFLATION INSPECTIONS INSURANCE INSURANCE BROKERS INSURANCE COMPANIES INSURANCE COMPANY INSURANCE INDUSTRY INSURANCE MARKET INSURANCE MARKETS INSURANCE PENETRATION INSURANCE PREMIUMS INSURANCE PRODUCTS INSURANCE SECTOR INSURANCE SUPERVISION INSURANCE SUPERVISORS INSURANCE SYSTEM INSURANCES INSURER INSURER SOLVENCY INSURERS INTERNAL CONTROLS INTERNATIONAL BANK INTERNATIONAL BEST PRACTICE INTERNATIONAL STANDARDS INVESTMENT CLIMATE INVESTMENT CONTRACTS INVESTMENT FUND INVESTMENT HORIZONS INVESTMENT PRODUCTS INVESTMENT REQUIREMENTS INVESTMENT VEHICLES IPO ISLAMIC BANKING ISLAMIC BANKS ISLAMIC FINANCIAL SERVICES ISLAMIC INSURANCE LACK OF TRANSPARENCY LAWS LEGAL JURISDICTIONS LEGAL PROTECTION LENDERS LEVIES LEVY LIBERALIZATION LIFE INSURANCE LIFE INSURANCE INDUSTRY LIFE INSURANCE POLICY LIFE INSURANCE PREMIUMS LIFE INSURERS LIQUIDATION LOAN LOCAL CAPACITY LOCAL MARKETS LONG TERM SAVINGS LONG-TERM FINANCE MARKET DEVELOPMENT MARKET FRAGMENTATION MARKET PLAYERS MARKET SHARE MARKET SHARES MARKET STRUCTURE MARKET STRUCTURES MINIMUM CAPITAL REQUIREMENTS MONETARY AUTHORITY MONOPOLIES MONOPOLY MORAL HAZARD MORTGAGE MORTGAGE INSURANCE MORTGAGE LENDING MORTGAGE LOANS MORTGAGE MARKET MORTGAGE MARKETS MOTOR INSURANCE MOTOR THIRD PARTY LIABILITY INSURANCE NATURAL DISASTERS NEW MARKETS NON LIFE INSURANCE NON-LIFE INSURANCE OUTPUT OVERHEAD COSTS PENETRATION RATES PENSION PENSIONS PER CAPITA INCOME PERSONAL LOANS POLICY MAKERS POLICYHOLDERS PORTFOLIO PORTFOLIOS PREMIUM REVENUES PRICE COMPETITION PRIVATE SECTOR DEVELOPMENT PRIVATIZATION PROFESSIONAL LIABILITY PROGRAMS PROPERTY INSURANCE PROTECTION OF POLICYHOLDERS PRUDENTIAL STANDARDS RATES RECIPROCITY REFORM PROGRAM REGULATORS REGULATORY CAPACITY REGULATORY PRACTICES REINSURANCE REINSURERS RENEWALS REPUTATION RESERVE RESERVE REQUIREMENTS RESERVES RETURNS RISK AVERSION RISK CAPITAL RISK MANAGEMENT RISK POOLING RISK PREMIUMS SAVINGS SECURITIES SETTLEMENT SHAREHOLDERS SOCIAL INSURANCE SYSTEM SOCIAL PROTECTION SOLVENCY SOLVENCY REQUIREMENTS STAMP DUTY SUPERVISORY AGENCY SUPERVISORY AUTHORITY SUPERVISORY FRAMEWORK SUPERVISORY REGIME TAX TAX POLICY TAX REGIME TAX REGIMES TAX RULES TERMS OF CAPITAL TORT TOTAL COSTS TRADE CREDIT TRADING TURNOVER UNDERWRITERS UNDERWRITING VALUE OF COLLATERAL WEAK CORPORATE GOVERNANCE WEALTH TAX This paper studies the causes of the low development of the insurance sector in the Middle East and North African (MENA) region, particularly for long term insurance. The paper shows that life and non-life premiums, as well as assets, are very low relative to expected levels given per capita income and demographic characteristics, and examines the causes of such poor performance. There is a wide range of factors constraining the development of the industry, including the absence of mandatory insurance in key areas, the predominant presence of the state in some countries, gaps in regulation and supervision, unsupportive tax regimes, fragmented market structures, a chronic lack of suitably skilled people, as well as the absence of products that conform with cultural/religious preferences, especially in the case of life insurance. The lack of development of the insurance sector is a matter of concern, as research shows that the sector can contribute to both financial and economic development. Key recommendations to accelerate the development of the sector include wider introduction of mandatory insurance lines that have clear positive externalities, continuing the privatization process for government owned insurers, employing non capital techniques to force rationalization of insurance sectors with too many small and inefficient players, removing tax distortions, taking steps to stabilize motor third party liability markets (typically the largest line of business), strengthening reporting and disclosure, regulating banc-assurance, improving consumer protection, further developing Takaful long term insurance ('Family Insurance'), and establishing regional centers of excellence for skills development. 2012-03-19T18:01:17Z 2012-03-19T18:01:17Z 2011-03-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110324090347 http://hdl.handle.net/10986/3374 English Policy Research working paper ; no. WPS 5608 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Middle East and North Africa Middle East and North Africa |