The rapidly developing GCC insurance and savings industry presents significant opportunities for business growth, according to finance experts.

Speaking at the Nexus Group’s Annual General Meeting (AGM), Tarun Khanna, the firm’s chief executive officer, revealed how the insurance broker is expecting a 31 per cent increase in its general insurance business this year compared to last year.

The life and savings business is also expected to have a record this year, he said.

The brokerage firm’s funds under management also continues to soar, with an expected 40 per cent rise by the end of the fourth quarter this year compared to last year, and another 25 per cent increase forecasted for next year.

“I am expecting an exceptional year in 2014 and my indications tell me we are going to have another record next year. We are truly the largest retail insurance broker in the region. This success all comes back down to our dedication to honest and quality advice, which forms the backbone of our company,” said Khanna.

“However, numerous opportunities await us, and Nexus will continue to invest and grow. This is what makes us different, not only as an insurance broker, but also as a financial advisor. We offer our expertise across all lines of business, from education savings plans and pension plans, to critical illness insurance and life insurance,” he said.

Although the average savings rate in the GCC is the highest at 37 per cent, insurance premiums as a percentage of savings stand at only four per cent, compared to North America where savings are 10 per cent and insurance premiums as a percentage of saving stand at 86 per cent – indicating a need for more community education, according to experts.

Nexus has witnessed remarkable growth in its savings business since the introduction of the Nexus Protection and Savings road show.

RS Prasad, Abu Dhabi sales director at Nexus, said: “As knowledgeable advisors, it is our responsibility to educate the client about the benefits of investing in a savings plan, especially in this region, where premium rates are considerably low compared to the rest of the world.It is equally our responsibility to inform our clients about the risks of not financially protecting themselves so that they can make educated decisions. Their needs are our primary objective.”

Nexus’ fund partners PineBridge Investments and Emirates NBD Asset Management were also present at the AGM, where the Emirates Emerging Market Corporate Absolute Return Fund was introduced, said a statement.

Nexus Group’s strategic partnerships and credible team of financial advisors has largely helped build its reputation as a trusted financial advisor in the region, which is bolstered by its rigorous consultant training programme, it added. - TradeArabia News Service