Booz Allen Hamilton says Arab world insurance sector poised for growth (page 3 of 3)

Regulators can influence the market in raising the standards of training programs by adopting internationally accredited programs and selectively approving local programs that meet minimum criteria.

Training programs can be organized by the regulator, the industry itself (such as associations of insurance companies and the companies themselves), and by the private sector as the demand for such training increases. In countries where the demand for takaful products is growing rapidly, regulators need to ensure the availability of training programs to educate the market on these relatively new products.

Regulators can require companies to take a more active role in developing the expertise of their employees by mandating training budgets and staff training programs.

Market-led Initiatives
Promoting the involvement of industry-wide bodies, whether at a local or regional level, is a valuable enabler for the development of the market by providing forums for the harmonization of standards and activities, and for the sharing of best practices. In particular, policymakers and regulators can play a valuable role in promoting more active involvement from industry associations, encouraging the adoption of market standards, fostering the availability of granular market statistics, generating consumer awareness of insurance, and raising the profile of the industry to attract new talent.

By way of example, Malaysia has been very successful in raising the awareness of life insurance. In 2003, a joint initiative, InsuranceInfo, was launched by Bank Negara (the Central Bank and insurance regulator of Malaysia) and other industry players. InsuranceInfo covers topics such as standard life insurance, annuities, investment-linked insurance plans, and child education plans. InsuranceInfo disseminates this information primarily through its website, as well as through booklets made available in branches of selected insurance companies and articles published in major newspapers. This program has contributed to the development of the life insurance market, which generated premiums of US$4.8 billion in 2005 - more than three times those in the entire MENA region.