Advisory sector registers strong growth in demand

"The changes in legislation are encouraging companies to review their approach to insurance as a whole, with a particular focus on integrating insurance into the wider growth and development strategy," said Mahmoud Nodjoumi, owner & CEO, Nexus Group of Companies, which is the largest independent financial advisor in the Middle East.

Countries across the GCC region are developing a range of new regulations relating to insurance, to help manage the ongoing increase in health costs and to improve employee cover. One of the knock-on effects of this new wave of regulations has been a major increase in the number of business seeking independent financial advice, according to one of the region's largest brokers.

For example, new rules announced last week by the Health Authority-Abu Dhabi (HA-AD) will see companies with fewer than eleven employees required to take out individual health insurance for each person, rather than group health cover.

The programme sees the company work with Nexus' panel of major international financial providers to develop new products specifically for the region.

Response from Nexus' network of customers has been extremely strong, with a high level of new inquiries coming in over the summer period.

The company is anticipating further growth in this area, as more companies look to adapt to the changing regulatory climate.

In 2005, Abu Dhabi was among the first major authorities to begin instituting a universal health insurance scheme, which will see companies provide health insurance coverage for their expatriate employees.

Meanwhile in Dubai, the Health Insurance Committee (DEC) is currently involved in extensive consultation with senior health and insurance professionals to help frame a similar new health insurance scheme.

It is estimated that, by 2008, the legislation will be implemented in all the Emirates.