Read Full Magazine Here. Since its establishment in 2009, Yemeni Qatari Insurance (YQI) Yemeni Shareholding Company established with a capital of YER. 1,000,000,000 (paid up capital 800.000.000 YER) with Yemeni Qatari Joint capital to provides all classes of insurance.
YQI established by Doha Insurance Group (Qatar) and selected eminent Yemeni businessmen. Doha Insurance Group has a very distinguished relation with reinsurers and Doha Insurance Group has a current financial strength rating of (A-) Excellent with a stable outlook from Standard & Poor’s, as well as global application performance standards to meet the requirements of businesses and large projects and this point gives YQI a competitive advantage in the insurance market and the confidence of experienced businessmen who chose YQI to protect their businesses and their insurance requirements. YQI follows international performance standards selected by Doha Insurance Group. YQI depends on Yemeni experts with high reputation of their long experience in the field of insurance. In addition, the company seeks the service of both foreign and Arab expertise to qualify and develop its local staff.
The company has been providing stability and reliability to its clients since 2009 to help them in providing protection for their property & lives with confidence, to give them peace of mind.
The company undertakes the tasks of ensuring the private sector and individuals, and it actively contributes to its main field of insurance and compensation for losses. As well as adding various insurance coverages in various fields.
Geographical spread and service marketing mechanisms: In order to provide an easy and affordable service to all its customers, Yemeni Qatari Insurance Company has provided a wide presence throughout Yemen. Behind its wide presence, stands a technical, administrative and financial cadre at the highest levels of qualification and practical experience.
The company has continued to play a role in supporting the economic activity in Yemen.
At YQI (Yemeni Qatari Insurance), management focuses on their customer’s needs. They are a progressive and innovative company using its resources to develop the best possible insurance products. No two people and no two countries are quite the same, and they know from their many years of international experience that insurance needs differ. YQI, therefore, has developed a concept which ensures its clients access to first-class Insurances.
Mujib Radman has 30 Years of experience in the insurance sector.
He holds Certificate: MAC, PIC, CPA.
Since 2012 and until today, Mujib Radman is the General Manager at Yemeni Qatari Insurance Company.
He is member in the following: Member BOD Yemen Insurance Federation; Member of the Committee for the Adoption and Application of International Accounting, Auditing and International Financial Reporting Standards in Yemen; Member of Yemeni Association of Certified Accountants; Member of Arab Federation of Accountants and Auditors and Chairman of The Banking and Financial Sectors Committee of the Federation of Yemen Chambers of Commerce and Industry.
His Previous Positions: In early 1993, Mujib Joined the Insurance sector; 2003/2011 General Manager at Al-Watania Insurance Company; 2010/2011 Vice Chairman of Yemen Insurance Federation; 2012/2014 Chairman of Yemen Insurance Federation and 2012/2014 Member BOD Arab Insurance federation.
Has has Lectured in various training courses and publications on insurance subjects.
Additionally, Mujib Radman attended various Conferences and Seminars on insurance in England. Germany, France, Denmark, Turkey, India, China, Qatar, Egypt ,Jordon, United Arab Emirates , Bahrain, Lebanon ,Tunisia, Morocco, Oman, Syria , Malaysia , Algeria.
Mujib Radman is highly well-informed on topics related to: Insurance and Reinsurance Administration; Technical Treaty Negotiations; General Insurance and Reinsurance Underwriting Techniques; Auditing and Corporate Finance, and Human Resources Development.
In a recent meeting, BUSINESS LIFE reporter talked with Yemen’s knowledgeable insurer, Mujib Radman who is the current General Manager at Yemeni Qatari Insurance, on the status of insurance companies in Yemen.
BL: What are the facts and aspirations of health insurance in Yemen? And What is expected from health Insurance?
Mujib Radman: Health Insurance is an important subject, which has surfaced in recent times as a major subject.
The importance that health insurance portrays in the economies of developing countries encompasses an important drive and conviction for those who possess the power of authority to initiate the health insurance programme. Considering that improvements in the standard of living for citizens demands interest in health care.
Persons enjoying peace of mind, are those confident of receiving suitable health care for themselves, their children and family members and are those capable of working and producing.
We expected from Health Insurance: Participation in the establishment of a fair and equitable distribution of health services to all citizens irrespective of affiliation to party, place, size, type of corporation or company employed with; participation in the establishment of mental, social, and economic stability for all social rank of laborers and citizens; participation in the improvement of the standard of health services offered to citizens by volume and quality thus reducing pressure on the free public resources provided by the public health services and the creation of an adequate supplement for the provision of good quality and reasonably priced health services; participation in the provision of sufficient financial revenues to fund the health sector to contribute in the reduction of the burden on public funds provided by the government, to corporations and companies or the individuals responsible for providing treatment for those working with them; participation in the provision of more job opportunities in the insurance sector within the authorities that provide health services; participation in supporting the national economy by the creation of more investment opportunity in the health sector and its various affiliated branches thus encouraging investors make investments in health projects; participation in the rise of ratios of health manpower, their families and health entities in compliance with the rate in increase of population; interest in preventative health comprehension and concentration on it as a focal point and on early health care leading to the elevation of the health standards and the de- escalation of the disease ratios and decreasing expenditures in the exorbitant costs of treatment.
BL: How is the health and motor business in YQI?
Mujib Radman: Motor business is less than 20% of the company’s portfolio with the remaining business coming from general and health business. “YQI is conservative in accepting motor insurance since establishment, we opt to act professionally and avoid price competition taking diversifying sources of income as the main strategy. In my opinion, the losses in motor and health insurance in the market are due to the focused-on tampering with the technical aspects and frantic competition.
Motor and Health Insurance have to professionally manage risk in underwriting and adapting to the event and dealing with it with high professionalism.
BL: What is the impact of climate change and ongoing war on Yemen’s insurance and reinsurance business?
Mujib Radman: Climate change is a global threat and has to be dealt with sincere authority. Insurers are required to assist in finding means to deal with the growing threats evolving from these risks. Combined efforts are required by Insurer creating a pool to confront incoming threat from this risk. Insurance can assist to some extent unless a joint deed is formed to meet the threat.
First effect of war - destabilize economically & commercially in the country. Although insurance was seriously affected due to economic & currency restrictions but gradually begin gaining as the situation improve but effects of war require time and efforts.
In recent years, the Middle East also experienced a significant increase in the number of natural catastrophes. Floods and sand storms have accounted for most of the frequent events, causing human losses and important material damages. Most affected countries by these weather events are Yemen, Saudi Arabia, Egypt and Lebanon.
BL: How do you assess the negative effects of the Covid-19 pandemic on the insurance sector?
Mujib Radman: The world has witnessed many hazards such as natural disasters, wars, epidemics and famines, which affected life, but the Corona epidemic (Covid-19) is unprecedented in its nature, threat and wide spread, which affected economic and non-economic life, and it is expected that the global economy will take longer than initially expected to fully recover from the shock caused by the outbreak of the emerging Corona virus, which has weighed not only on the insurance sector, but on all productive and service sectors and the world fell into The deepest recession since the Great Depression in the thirties of the last century. Affected aviation, tourism, hotel, restaurants, conferences, exhibitions, festivals, export sector, logistics sector and trade and industry sector all affected the insurance sector and even more so resulted in some of the losses borne by the insurance sector, especially for documents that cover epidemics as well as for documents that were not expressly excluded.
BL: Going back to Yemeni Qatari Insurance Company, what is the premiums increase for the year 2022? What are your expectations for the year 2023?
Mujib Radman: We achieved our target as expected for 2022 and for 2023. we have introduced new programs that are obtainable by customers without complications and we facilitated through the sales outlets that are present throughout the day, whether at home or abroad. Our company is moving at a steady pace year after year as planned, whether in terms of results or its location in the Yemeni market, and we still have numerous plans and we are working to qualify the functional staff to keep pace with all developments in the world of insurance.
BL: What are the challenges facing the insurance business in Yemen nowadays?
Mujib Radman: At the present time, inflation is a challenge for the Yemeni market, and the frantic competition, which focuses on tampering with the technical aspects. It is also one of the dangers facing the entire market and not only our company as the distance from providing services, which is the criterion for choosing the customer, has become far from all the competition for prices and technical conditions.
In addition, the political and economic conditions that our Arab world is still living in have reduced opportunities and hindered any developments in the insurance industry, so we hope that it will be clear soon and everyone will return better than it was before. As well as the clear strictness of reinsurers by setting rather harsh conditions and reducing the underwriting of risks as a result of the disasters occurring in the world, whether caused by Corona or other hazards that shook large economic entities in the world. Our company has readiness for any constriction that may be witnessed in the Yemeni insurance market because it has been dealing since its inception in accordance with the directives of the Regulatory Authority and works in accordance with internationally recognized international standards and keeps pace with all developments in the insurance industry.
BL: How far did the earthquake in Turkey and Syria impact the ranking of affected regions according to the insurance rate?
Mujib Radman: There has been huge losses reaching more than 5Bln dollars in Turkey & Syria. It is not perfect time to discuss insurance costs. Insurance companies on above regions are instantly paid millions of dollars to the Insured property owners. International Aid is pouring in the affected areas. Losses resulting from uninsured properties perhaps will be compensated by the authorities. No statistics are available to justify costs on such perils and this point requires in-depth study for future rating.
BL: What is the impact of inflationary trends on the insurance and reinsurance sector?
Mujib Radman: Inflation has become a major problem in our daily life. Whilst economists are predicting an inflationary spike in 2023, and a reduction in inflation thereafter, Lloyd’s are putting pressure on the market to consider the inflationary impact on their book and has implemented more rigorous measures in the 2023 business plan to show explicit and relevant inflation assumptions in addition to exposure and market related rate change, and any changes in the view of risk.
According to Fitch Ratings they believe prolonged high inflation could raise claims and reserve deficiency of reinsurance. It could also slow business growth as purchasing power is eroded, leading reinsurers to focus on price adjustments and underwriting discipline. Reinsurers are also boosting risk mitigation capability to help manage the complexity and uncertainty surrounding climate change. For example, Asia-Pacific reinsurers face weather-related catastrophe losses from flooding and drought, such as the major floods in eastern Australia and China in 2022. Reinsurers are re-assessing risk modelling and catastrophe management frameworks to help quantify potential natural-hazard losses for underwriting, pricing and capital setting.
The consequences of such sharp increases in inflation will also be felt across most lines of the insurance industry in the short- to medium-term. Property and construction insurance claims, in particular, are exposed to higher inflation, as rebuilds and repairs are linked to the cost of materials and labor while shortages of materials and longer delivery times inflate business interruption values. Other lines of insurance, such as directors and officers, professional indemnity and general liability, are also susceptible to inflationary pressures through rising legal defense costs and higher settlements. Ultimately, inflation can bring pressure on claims severity from multiple angles.
BL: In your view, what are the effective insurance solutions to the current and future climate change?
Mujib Radman: Activate community resilience through solar community resilience hubs. Dismantle energy insecurity through solar community resilience hubs.
Incentives can include discounts in premiums to policyholders to help finance mitigation efforts.
For sure, better insurance could effectively mitigate the climate change
BL: What is the financial insurance inclusion nowadays?
Mujib Radman: The concept of financial inclusion is the process through which a society has access to different financial services (credit, savings, insurance, payment and pension services), as well as financial education mechanisms, with the goal of improving its material conditions of well-being. In the case of insurance activity, financial inclusion focuses on allowing lower-income groups of society to gain access to the products that enable them to protect their life, health and assets, through the savings and loss compensation processes which are an inherent part of insurance products.
The process of financial inclusion in insurance has been implemented, in general, through three types of products: “group insurance,” “inclusive insurance,” and “microinsurance.”
BL: What are the current challenges that the Insurance and reinsurance industry is facing?
Mujib Radman: The economic fallout from the pandemic and the war in Ukraine have combined to create an inflationary environment that threatens to drive up the cost of commercial insurance claims and puts the issue of undervaluation of insured assets firmly in the spotlight. Therefore, The Biggest insurance industry challenges today are as follows:
Challenge 1: high inflation and the consequent cost-of-living crisis
Challenge 2: Reinsurance capacity is expected to decline, according to a new report from Munich Re the insurance industry continues to be burdened by extreme inflation, rising interest rates and asset slumps, along with the war in Ukraine.
Challenge 3: climate change risk
Challenge 4: financial inclusion
BL: What are the challenges of climate change and economic pressure on the insurance and reinsurance industry?
Mujib Radman: Under many scenarios, climate change also increases the frequency and severity of natural disasters such as wildfires and major storms. These disasters, in turn, could damage physical assets and create growing disruptions to local economic activity, raising the cost of insuring highly exposed properties and businesses. As a result, the price of that coverage would rise, and insurers’ willingness to offer policies on some properties would fall. The risk of business defaults following natural disasters could increase as firms tend towards lower levels of insurance coverage. This pullback in insurance coverage could be a financial system vulnerability with a variety of second-order effects, many of which are beginning to be visible in the property and casualty insurance markets of some countries.
Uncertainty also presents the possibility that insurance and reinsurance companies will underestimate risk, another potential financial system vulnerability. As many insurers use standardized catastrophe models to help price risks, there is the potential for correlated losses if these models fail to reflect new patterns of weather and disasters. This could lead to a sudden repricing of many insurance products, leading to externalities for businesses and people that need to purchase coverage.
BL: It is said that the reinsurance renewals have past by a very critical phase this year, do you agree that reinsurance is at the crossroads? Why? What is the solution?
Mujib Radman: The reinsurance market is coming to tighten and reconsider all conditions and prices, the upcoming renewals will be more painful and will change underwriting policies and all of these are due to the losses suffered by the global insurance market either our Arab market did not befall disasters as is the case in other global markets, but we are affected by them and bear the burden of what is happening as we are part of the world.
Reinsurance rates are based on underwriting results of reinsurer. There are reinsurers who produced good results irrespective of climate change (Hurricane, Floods, storms etc.) & other accidents. Reinsurers will no doubt consider tackling the risks and costs in presence of forthcoming events.
BL: Is it true that the rebalancing of reinsurance supply and demand in favor of the traditional market has given Munich Re, Swiss Re and others the competitive edge to impose their demands?
Mujib Radman: Munich Re & Swiss Re are leading reinsurer worldwide who maintain steady and fair demands all the time. For the past several years, their terms and conditions remain positive with markets. Irrespective of huge natural perils losses, premium income and profits remain stable. According to recent reports, Munich Re has ended the 2022 financial year with a 16.6% growth in its net profit reaching 3.419 billion Euros.
BL: What are your updates on the economy in Yemen and the financial situation of the insurance companies in your country?
Mujib Radman: The economy largely depends on the wellbeing of the country and its political situation. Yemen’s economy is suffering from the imposed restrictions. Insurance companies are maintaining a balanced financial solvency status by practicing underwriting skills with the backing of their reinsurer.
