Omar Souhail Bilani is a Lebanese native with a master’s degree in business administration. During his more than 35 years in the insurance industry, he's amassed an enviable track record of developing insurance companies into exceptional performing entities.
His perseverance and determination have helped him survive the industry's many ups and downs. A proud insurer of numerous achievements that spanned decades of hard work in various countries, Omar Bilani is acknowledged for his outstanding work and contribution to GroupMed Insurance which is a well know conglomerate and presently he overwhelmingly busy in expanding the company to various countries in the region and abroad like Turkey.
Since graduation from American University of Beirut in 1981, Bilani started his career at Arab Re for 2 years then he joined Arab Universal Insurance Co.- Lebanon for 3 years. In late 1986, he travelled to Saudi Arabia and lived for 25 years working with Saudi National Insurance Company which was later registered as a public company in the name of Wataniya Insurance Company. His last position at Wataniya was Managing Director and CEO.
In February 2012, Bilani joined Hariri group (GroupMed) with the objective of building the group's insurance arm following the group's exit from MedGulf shareholding. Bilani’s Long term objective is building a network of brokerage and insurance companies across the MENA region and Turkey.
Omar S. Bilani serves as Chief Executive Officer, Managing Director at GroupMed Insurance. He is well known for the outstanding leadership ingenuity in handling the various companies that he joined. Bilani is an epitome of perseverance and success. With all the accomplishments and career heights that he has achieved and yet to achieve, Bilani has maintained a low-profile life behind the success story he built. The height of his achievements has also not been a hindrance in pursuing greater business heights as he continues to support the insurance industry in various callings and appointments. Indeed, he is a reflection of true success as an outstanding businessman and a true-blooded Lebanese.
BL: As one of the leading insurer, what pushed you to start a new career in the brokerage field with a focus on continuous revenue growth and profitability to push forward GroupMed amidst this turbulent markets environment?
Bilani: As you are aware, the insurance industry is a cycle of different professions, whether it is in brokerage (direct or reinsurance), direct Insurance, or Reinsurance underwriting, they are all inter-related and complement each other.
GroupMed has been in this industry as insurers (through their shareholding in Medgulf), and following their exit from Medgulf end of 2010, the decision was taken to remain involved in the insurance business. I joined the group in February 2012 with the objectives of building a regional Insurance and Reinsurance brokerage network, in the short run, and establish a direct insurance underwriting arm in the long run.
BL: What factors will help in the growth of GroupMed regionally and locally?
Bilani: Being part of the Hariri group, our plans for GroupMed Insurance is to operate in the markets where the group has activities and operations to insure and grow with time in building a portfolio of non-captive business. The size of our group business has been the solid grounds on which we are building up our different companies in the different markets. It happens that the markets where the group is operating in are also considered attractive markets from an insurance point of view; we are here referring to Lebanon, Saudi Arabia, UAE, Turkey and South Africa.
BL: What are your present and future plans? How long will it take you to accomplish all your forecasted plans? Kindly elaborate on your expansion plans.
Bilani: The brokerage network (GroupMed Insurance Brokers (“GMIB”)) is almost complete. We are fully operational in Lebanon, South Africa, DIFC (GroupMed Reinsurance Brokerage Limited (“GMRB”)) in UAE, and by the time this interview is published, GMIB Saudi Arabia, as well as an Insurance agency in Turkey will be licensed and operational. In parallel to the brokerage units, the Group acquired in November 2013, a Turkish Insurance company in the name of Demir Sigorta A.Ş. We are seeking acquisition opportunities for insurance companies in Lebanon, KSA and UAE. Until these good opportunities arise, we cannot predict the time it will take to accomplish our forecasted plans.
BL: Is it true that you are targeting to make your group as one of the largest brokerage firms in the MENA?
Bilani: The MENA region is saturated with brokers, however very few are considered professional ones and have reasonable books of business. It is important to have the objectives of being among the largest regional brokers, but it is also important to be among the most professional ones, it is our aim to build a team of trained professionals and experts, and to have a fully compliant institution in line with the increasing regulatory environments building up in the region. Much emphasis is being put on corporate governance, compliance etc… as well as training of staff technically and on regulatory requirements. We believe this way we will be growing on solid grounds and hopefully we will be among the top players in the region.
BL: Does GroupMed as it stands now fulfill the expectations you had when you first joined the company?
Bilani: With the group support and the Insurance team that I am proud of, I believe we have achieved a big progress in establishing the different companies in the different markets with different regulations, some of these new startups are already staffed and operational, and others are ready and awaiting last minute approvals to start operations. I would say I am very satisfied but much is yet to be done before we say whether expectations are fulfilled or not.
BL: In what ways can GroupMed operations be enhanced?
Bilani: The Hariri group is active in different lines of business, from the construction (Saudi Oger) to the telecommunication (Turkish Telecom, Avea, Cell C) and to the banking (BankMed, Turkland Bank). This platform is the best platform for growth in the insurance sector, retail business (Bancassurance or Telemarketing) and/ or cross-selling to the group’s network of clients/ suppliers are fast means of growth provided the right products and the right services are provided. We have been active in these areas and have plans to grow more through these channels as well as the regular growth in various markets whether on the insurance or reinsurance fronts.
BL: What is the difference between conventional insurance and Islamic insurance?
Bilani: In simple terms, Islamic (Takaful) Insurance and unlike conventional Insurance, have to have its products approved by Sharia board. The same applies to the investment of the company’s capital, or policyholders monies; it has to be in Islamic Financial products. Some adjustments on the accounting terms and entries are also needed in Takaful Insurance.
BL: What do you comment on the MENA’s economy and its insurance industry?
Bilani: The insurance industry in the Mena Region has all the growth ingredients, whether it is the population growth, the increased awareness, or the regulations and increasing compulsory lines of business, however and as the economy is directly affected by the political situation, there are lots of question marks and ambiguity as to what to expect in the coming years; the political scenes have directly affected the economies of Iraq, Libya, Egypt, Syria and Bahrain, and indirectly all the markets in the region.
BL: How does GroupMed Insurance add value to your famous group?
Bilani: Besides being the group insurance broker, GroupMed Insurance plays the consultant’s role for all the group companies, we make sure that adequate covers are in place and insurance is done with first class securities. Our involvement extends to ensure smooth claims handling and processing by insurers/ reinsurers.
Developing products that can be marketed through the group network ultimately adding value to our group companies in additional services they are providing to their clients and in additional financial returns they receive out of these services/ products, is also a role GroupMed Insurance plays.
BL: What are the differences between today's Saudi insurance industry and 10 or five years ago?
Bilani: Ten years ago, the Insurance Industry was operating in an unregulated market, while five years back the regulations were in place and Insurance companies were still adapting to the environments.
Today’s Insurance companies are more mature, not only in terms of writing healthy business but in terms of corporate governance and compliance regulations. SAMA as a series regulator played a major role in the development of Insurance companies in Saudi Arabia. They have educated and monitored these companies to work within a regulatory framework, and have strictly imposed actuarial calculations on compulsory classes of business being motor and medical; this step was aimed at avoiding unhealthy competition based on volume underwriting exercised by many companies exposing their capitals to big losses.
BL: Is there a limit to health cost in our region?
Bilani: Our region is not different than other markets in terms of Medical cost increases. With the new and sophisticated technology, medical claims cost is increasing rapidly and claims inflation is inevitable worldwide. What is more of concern to the increase claims cost (that lead to increase in premium cost), is the extent of abuse and fraud in the medical insurance area, unfortunately networks of medical providers (Hospitals, Doctors, Pharmacies) are active in manipulating medical bills and collaborating with insured patients in abusing the system. Should there be a good audit and control systems, the overall cost will be within reasonable increases in any market.
BL: What is the best way to fix the Middle East insurance and do you think that health insurance needs a reform?
Bilani: The insurance in the Middle East is still developing, it has the ingredients to grow as mentioned earlier, yet the sector has to be developed to properly accommodate the increased demand and cope with the regulatory requirements that are of international standards in some of our markets.
Human resources remain a major challenge in the Insurance Industry; training is sought at all levels from management to technical, sales and customer services levels.
Building big institutions with solid financials that can face the upcoming growth is a must; moreover consolidation is inevitable if we want to see big professional players in the market.
As mentioned earlier, abuse and fraud in medical insurance is a given fact, yet it is more dominant in our developing markets that it is in developed countries. Regulators, Insurers, Medical providers and the insured population should all be convinced that they are partners in building a healthy good medical insurance system where all parties will have long term benefits, it is a long term objective that all should work together to achieve.
BL: What does the future hold for this profession?
Bilani: Insurance Industry in the region has a big potential for growth and development, as indicated earlier, population growth, increased awareness, young population, and increased wealth are all factors in the positive direction for this growth. Increased regulations will accompany the development of this sector till it reaches international levels. There will be increased demand for human resources, universities are urged to include insurance programs and young graduated are advised to knock the doors of insurance companies if they are looking for a prosperous and promising long term careers.
BL: How to make changes to existing plans in order to reduce costs?
Bilani: Proper risk management and good management of portfolios are the best tools to control claims and consequently reduce premium cost. That is why we strongly believe in the partnership between insurers and their clients that will ensure in the long run control over claims. Consultants and brokers role is to make sure that clients are buying adequate covers and not paying for risks that are not relevant to them or to their businesses, insurance should be looked at as investment in safety and not an expense item.
BL: Usually, an employer is concerned on how he can increase health care deductibles or otherwise increase employee cost-sharing to reduce overall premiums?
Bilani: Tailor made covers are essential to make sure clients are buying covers they need, deductible/ co-sharing are important elements in controlling cost, in Medical Insurance for example, and knowing that deductibles/ co-insurance paid by employees will reduce drastically any abuse to the policy, underwriters are more than willing to reduce their premium rates should deductibles be increased. Again here, we are talking about partnership that will bring stability and reasonable rating into any account.
BL: How companies might be at risk of being assessed a penalty for not offering affordable, qualified coverage in certain countries?
Bilani: Affordable coverage is dependent on claims experience and track records, Insurance companies follow statistical records when underwriting any piece of business. In free markets, you cannot impose penalties on high or low rates quoted by insurers.
Qualified coverage might be different, you can insure anything provided there is a premium for it, Insurers or brokers can be penalized if mis-presentation or misleading is exercised on the insured at the time of selling him the insurance policy. Exclusions should always be highlighted and explained to clients, and questions should be clearly answered and documented in writing to avoid any disputes at the time a claim arises.
