mobilize long-term savings, the insurance sector must operate on a financially sound basis. A well-developed insurance sector also helps enhance overall efficiency of the financial system by reducing transaction costs, creating liquidity, and facilitating economies of scale in investment.
The Insurance core principles provide a globally accepted framework for the regulation and supervision of the insurance sector. International Association of Insurance Supervisors (IAIS) principles, standards and guidance papers expand on various aspects. They provide the basis for evaluating insurance legislation, and supervisory systems and procedures. From an initial bout of seventeen core principles, now there are 28 insurance core principles (ICP) in seven clusters.
Arab World is endowed with a huge resource base. Its insurance potential is phenomenal. Insurance sector can protect the wealth of Arab World while creating a diversified business opportunity for itself. The table 2 indicates the emerging insurance power of Arab World.
Table 2: The Top Insurance & Reinsurance Companies In The Arab World By Shareholders Equity/Total Assets
Incorporated Company Country (USS Million)Equity (USS Million)Total Assets
1980 ARIG (Unconsolidated) 1997 Bahrain 448.69 967.69
1964 Libya Insurance Co. 1994 Libya 213.75 967.42
1960 Kuwait Insurance Co. 1998 Kuwait 155.54 317.49
1972 Abu Dhabi National Ins. Co. 1996 UAE 222.37 316.50
1934 MISR Insurance Co. 1994 Egypt 104.15 952.90
1934 Qatar Insurance Co. 1994 Qatar 98.95 146.82
1986 National Company for Coop. Insurance 1994 Saudi Arabia 91.42 213.86
1962 Gulf Insurance Co. 1994 Kuwait 84.71 153.58
1962 Al Ahlia Insurance 1994 Kuwait 84.59 157.69
Successful countries and organizations tend to be excellent not only because they understand the risk they face but also because of how they manage them. If risks are not managed properly, it results in falling market share , takeovers and m...