Minister of Economy Stresses Importance of Raising Awareness of the Benefits of Insurance for Traders and the National Economy

 

Eng. Maeen Al-Mahaqri, Minister of Economy, Industry, and Investment, stressed the need to raise awareness of the importance of insurance and establish it as a culture within the private sector, given its benefits that contribute to achieving financial stability and supporting economic development.

During the symposium “Marine Cargo Insurance: Protecting Commercial and Economic Interests,” organized today by the General Investment Authority, the Yemeni Insurance Federation, and the Public-Private Coordination Committee, Minister Al-Mahaqri pointed out that insurance reduces the risks that investors may face, which encourages increased investment in various sectors.

He highlighted the role of local insurance companies in promoting their services and raising awareness of the importance of insurance through simplified mechanisms that enable the average trader to acquire sufficient knowledge of its importance and types.

He explained that these companies’ awareness-raising efforts are part of marketing their services and expanding and developing their insurance businesses. The Minister of Economy and Industry stressed the need to review the relationship between relevant authorities to expand and encompass insurance in the private sector and establish operating rules that accommodate changes and address concerns that drive merchants to evade insurance or insure with foreign companies.

He explained that the Ministry is currently working to amend and update the legislation and laws related to the Yemeni economic system to keep pace with changes in the global economy.

These include amending the laws on companies, trademarks and commercial agencies, certified public accountants, consumer protection, and e-commerce, as well as the insurance and insurance work law, with the participation of all relevant parties.

He emphasized the Ministry of Economy’s readiness to work with the Federation to localize insurance services according to systematic plans that promote a deeper understanding of insurance as a basic, rather than a complementary, financial product. He also emphasized the Ministry of Economy’s readiness to make decisions that enhance awareness and utilization of insurance services in an optimal manner that informs beneficiaries of their rights and duties, protects them from fraud, and enhances trust between merchants and insurance companies.

Salah Al-Absi, Secretary-General of the Yemeni Insurance Federation, indicated that the symposium aims to develop an action plan to ensure that all imported goods are covered by insurance coverage. This is to protect national capital from risks, strengthen the position of the local insurance sector, and prevent the leakage of hard currency to foreign insurance companies. For his part, Mohamed Salah, Vice President of the General Federation of Chambers of Commerce and Industry, emphasized the importance of cooperation between various parties to simplify marine cargo insurance procedures and coordinate efforts to develop mechanisms for handling insured containers, ensuring efficient clearance and unloading.

For his part, Muhannad Al-Shami, Chairman of the Public-Private Coordination Committee, pointed to the private sector’s need for insurance and to raise awareness of prevailing concepts in this area. He also highlighted the experiences of some merchants who were at risk of bankruptcy due to a lack of insurance for their goods.

During the seminar, which was attended by Ayman Al-Khalqi, Undersecretary of the Ministry of Economy for the Industrial Sector, and Mohamed Al-Farzai, Undersecretary of the General Investment Authority, a presentation was given on the importance of marine cargo insurance and the protection it represents for Yemen’s commercial and economic interests. Participants from the private sector, insurance companies, and experts also discussed the importance of localizing marine insurance as a strategic step to protect the national economy.

The seminar concluded with several recommendations, emphasizing the importance of implementing laws and encouraging importers to voluntarily insure their goods through local insurance companies, given the importance of this in supporting the national economy.

The recommendations called for the rapid development of legislation related to the insurance sector and the facilitation of its procedures in accordance with recent developments, as this is a strategic step to enhance the business environment and attract investment in promising sectors. They urged local insurance companies to communicate with regional and international institutions specialized in investment affairs, of which Yemen is a member, to act as intermediaries between these institutions and investors to insure investment projects against non-commercial risks, in accordance with the procedures followed by these institutions and the laws in force in the Republic of Yemen.