Read special supplement here. Nasco Re hosted a grand Gala Dinner, on the occasion of the 34th GAIF conference. The event was a spirited celebration, where colleagues and esteemed guests came together to reminisce about the past year and share hopes for 2024.
It is important to note that Nasco is in the process of finalizing a strategic alliance with a leading European broking firm. Nasco strong network in the Mena region will complement the extensive European and African footholds of our potential partners thus enabling both parties to deliver a superior level of client service on global scale.
Joe Azar, who joined Nasco Group in 1992, is the President of Nasco France and the Chief executive officer of Nasco Re. He set the tone by outlining the excellent results achieved in 2023 and describing the company’s vision for 2024. With a dynamic market and exciting developments on the horizon, the upcoming year calls for thoughtful innovation and proactive responses from the entire Nasco family.
Nasco Re is steadfast in its commitment to elevate customer satisfaction, deliver high-quality solutions, and provide impeccable service.
Nasco Group is driven by a cohesive team of more than 1,500 experts in insurance and reinsurance broking, underwriting, as well as related insurance-specific services, such as medical third-party administration and travel assistance.
Noting the above, it is important to admit that technology is advancing at such a rapid pace that it can be hard to predict what will happen a year from now. Advanced technologies are already transforming the insurance industry in ways that were unimaginable a short time ago and are likely to continue to do so in years to come.
Furthermore, Climate change will have considerable consequences for the insurance sector.
Moving forward, BUSINESS LIFE conducted an exclusive interview with the popular and charismatic Joe Azar. He explained how Nasco Group is continuously expanding its geographical footprint. Nasco has recently launched an office in the Sultanate of Oman and is planning to establish new operations in Bahrain & Kuwait.
Nasco Re’s success and growth is supported by an expert and talented Team enjoying a remarkable agility to get the job timely done and ensure constant and successful engagement with Customers.
BL: What is the size of the insurance industry in the Sultanate of Oman?
Joe Azar: The Omani insurance industry represents a dynamic Market enjoying excellent regulatory environment.
The premium income generated by the insurance industry of the Sultanate of Oman is projected to reach USD 1,55 bn in 2023. This reflects an average annual growth in the region of 12 % with the highest growth recorded under Property, Life and Health lines of business.
National insurers control a Market share of 85 %.
Health insurance is the dominant segment with 35 % followed by Motor with 20 % and Property representing 17 %. Life with income in the region of $ 190 m has a significant potential, given low penetration to date (0,2% of GDP)
Two Takaful Companies founded in 2014 produce a premium volume as high as 14 per cent of the Market, but the proportion of Family Takaful premium income out of a total Omani life premium is 27,5 %.
BL: How do you rate the GAIF34th that was held recently in Muscat, Sultanate of Oman?
Joe Azar: GAIF founded in 1964, plays an important role in supporting the development of Arab insurance Industry.
GAIF conferences, webinars, studies and publications actively contribute to exchanging data and experiences between Markets. The constant dialogue between GAIF Members has created the necessary platform to enhance cooperation and secure a climate for better integration, whenever necessary.
On the occasion of every GAIF conference, we have always hosted a Gala dinner to extend our appreciation to all our partners both Clients and reinsurers. This year our event had a special flavor as this was organized jointly with the Omani Ins Association and the event marks the GAIF 60th anniversary.
BL: What are the biggest threats and challenges to the insurance industry?
Joe Azar: Our industry has faced recently a number of emerging risks notably pandemic and technology disruptions in addition to the usual threats of uncertainty driven by geopolitical instability and the global economic volatility.
Managing and protecting Data, with the Cyber threats around, is a must for insurers to avoid operational and reputational risks. The sustainability of Cyber insurance, enjoying tremendous potential for growth, imply huge efforts to fight Cybercrime and encourage Cyber security.
Technologies such as blockchain and AI permit an automation of processes reducing risk of fraud and cost of administration. Data analytics, IoT and Telematics represent efficient enablers for insurers to transform their products and improve Clients’ experience and persistency ratio. By monitoring behavior and tracking exposure, we can offer tailor made or UBI type of products with accurate experience rating!
Climate change is a critical issue to insurers, given the surge in frequency and severity of Heavy rain , floods, hurricanes , wildfires and drought . This is impacting heavily economies, and more importantly people’s health. Insurers should adapt their products and pricing to the new loss patterns thanks to predictive modeling. Insurers should encourage Proactive preventive measures and incentives to encourage decent governance, best practices and non-vulnerable infrastructure. These should secure more resilience and higher sustainability which are definitely more than ever needed .
Implementing the above requires no doubt a significant investment in Talents and innovation.
BL: What is the future of the insurance workforce?
Joe Azar: Remote work continues to be adopted post Covid thus permitting insurers to attract young talents who tend to privilege the balance between leisure and work .
Considering the need to innovate, use technology and engage more actively with customers, insurers will be called to focus on a different profile of skills in responding to recruitment requirements. We expect a shift in targeted Expertise towards Actuaries , Modelers , digital experts , data analysts , communication ,SMM experts and professionals in sustainability. Very briefly, insurers will be promoting diversity of talents across the workforce.
BL: Do you agree that premium income may lag behind the development of claims if the changing risks due to climate change are not properly accounted for in calculating premiums?
Joe Azar: Due to climate change, the increased frequency and intensity of Cat events entails into higher claim cost to insurers. This translates inevitably into more expensive premiums, as insurers have no choice but to pass on the inflated bill to customers.
In few areas, Disasters incurred have triggered a significant surge in premiums to the point of reaching unaffordable levels. This sort of situation has led a number of US insurers to pull out, thus making the concerned areas uninsurable without the financial support of local authorities.
Cat models are based on assumptions re Hazard and vulnerability. These produce outputs describing size and distribution of potential losses which carry a degree of uncertainty. This inherent inaccuracy tends to increase for extreme events, where loss experience remains too limited to establish reliable long-term trends. Cat Models should therefore integrate future climate change scenarios using Global climate models GCM. A forward-looking approach should be adopted by modelers to ensure a better understanding of exposures and permit adequate pricing.
Insurers should also encourage mitigation measures and support transition to Renewables and the smooth insurance coverage of low carbon technologies.
BL: What are the top priorities at Nasco Re?
Joe Azar: The top priorities at Nasco Re are the following:
* Talent Retention and acquisition of expert workforce : A skilled Team on board is the right strategy to drive business forward and honor our commitment to secure customer satisfaction on every front. Nasco Team should be always in position to act as successful solution provider, in response to clients’ growing demand for wider technical support.
* Proximity with clients : Anticipating customers’ needs and managing clients’ expectations is key to unlock growth . This is conducted more smoothly when we are closer to clients in the way to meet , listen to and interact with our partners on regular basis .
* Explore new opportunities for geographical expansion and establish stronger presence in the Emerging Markets in Africa .
* Focus on specialty lines by putting emphasis on tailor made products for selected niche Markets and enhancing distribution channels
BL: What are your plans and strategies for the year 2024?
Joe Azar: Well, Nasco is in the process of finalizing a strategic alliance with a leading European broking firm. Nasco strong network in the Mena region will complement the extensive European and African footholds of our potential partners thus enabling both parties to deliver a superior level of client service on global scale.
The economic development, growing population, and regulatory reforms in the Mena region should boost the development of the insurance industry and make Nasco continued journey of Growth a successful one. Nasco Re will consolidate its leading position in the MENA Markets.
