Nexus, the Dubai-based IFA firm, believes the market for insurance products in the Middle East is set for double digit growth in 2010 on the back of the uncertainty created by the financial crisis.
The company – which was created in a management buyout within Zurich’s tied sales force in the region 2006 – has hired a director of general insurance to help manage what it believes will be an upsurge in business.
Nexus said the economic slowdown in the region was leading more people to take out personal insurance products to protect against potential job losses or salary cuts.
Mahmoud Nodjoumi, owner and chief executive of Nexus Group, said: “Many people in the region suffered financial uncertainty in 2009 for the first time in their lives, and we have already seen that have a positive impact on demand for personal insurance products.”
He added the forecast of double figure growth was not unrealistic because historically insurance penetration is low in the Middle East, “we are still playing catch-up with the US and Europe,” he noted.
Quoting a figure from the Arab Insurance Market Review, Nodjoumi said overall insurance penetration in the Gulf region was 1.1% compared with 7% globally.
New products, markets and staff
Nodjoumi said Nexus was looking to improve its product offering and service to clients, as well as consider new markets where take up of insurance, particularly life and Takaful, products has been low. It also plans to hire more advisers.
The appointment of Rumi M Sanjana, director of general insurance, forms part of these growth ambitions. Sanjana is former chief executive of Vita International Insurance Brokersm, has 32 years experience in the UAE insurance market, including a period on the committee of the Emirates Insurance Association.
Sanjana said: “My reason for joining Nexus is to support the firm in its growth and expansion of the general insurance side of the business. At present it makes up about 15 percent of the company’s overall business, and we are looking to increase that by a double-digit figure this year.”
