Statistics from the National Commercial Bank (NCB) show that approximately 80 percent of the region’s companies can be classified as small-to-medium businesses, based on the number of employees and offices.
However, the sector continues to be under-insured, with an estimated insurance penetration rate of below 10 percent region-wide, according to analyst Booz Allen Hamilton.
To help reduce the shortfall in protection for both employees and key assets, leading independent financial advisor Nexus today announced a new programme designed to provide bespoke financial products specifically for the Middle East’s SMB sector.
The programme will aim to identify key areas for financial product development in the Middle East, working with Nexus’ panel of major international financial providers.
“Nexus understands that the small business sector is essential for the growth and development of the local economy, and is actively looking for ways to better protect companies operating within it. We are working with a number of major international partners to help develop financial products that fully meet the needs of small organisations across the Middle East,”
said Mahmoud Nodjoumi, owner & CEO, Nexus Group of Companies.
Nexus today also announced the launch of a new bespoke small business product developed by Zurich International Life, which offers a package of employee life and disability insurance for firms with more than five workers.
One of the advantages of the new product is that it is structured so that advisors can quote its cost immediately, making it easier for companies to quickly and effectively safeguard their employees.
As part of the campaign, Nexus is also working to drive awareness of the importance of products that are designed to protect human resource in the region, such as “key man insurance”.
For many small business owners, there are one or more individuals who are important for the stability and success of their company. Key man insurance protects against the loss of essential staff that have particular skills, knowledge, ability or roles in the organization.
In the event of these people becoming seriously ill or dying, the insurance policy can be used to pay off debts, find a replacement, buy out the person’s shares in the company, or help to supplement the income of the family.
Launched in September 2006, Nexus employs almost 300 professional advisors. It has offices in Dubai, Abu Dhabi and Bahrain, with plans to expand across the region and ultimately internationally.
Wednesday, June 27- 2007 @ 10:24 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.