Read Full Magazine Here. Insurance has long stood as a beacon of financial security, but when it becomes mandatory, it transcends individual protection and transforms into a cornerstone of economic and social stability.
From the pioneering days of Otto von Bismarck’s health insurance in 19th-century Germany to ’s advanced frameworks safeguarding against cyber threats and climate disasters, compulsory coverage has continually evolved to meet society’s most pressing challenges. , it is not merely a regulatory obligation but a powerful mechanism for ensuring collective resilience and fostering public trust.
At the heart of this revolution in risk management is Nasco France, a powerhouse with over 40 years of industry experience. As the leading reinsurance broker in the MENA region and one of the top three in France—with over 95% of its turnover derived from reinsurance operations—Nasco France exemplifies excellence in a competitive market. Nasco Re, the group’s reinsurance broking arm, is steered by the seasoned CEO Joe Azar, whose 42 years in the field have seen him rise through the ranks since his early days at SNA Allianz. Under his dynamic leadership, Nasco Re recently hosted a superb gala dinner during The Tenth International Aqaba Conference (11–14 May 2025) at the Aqaba Special Economic Zone in Jordan. Held at the prestigious Golf Club in Aqaba, the event brought together VIP insurance and reinsurance participants. Famous singers and dancers electrified the atmosphere as the night celebrated industry excellence, culminating in prestigious awards honoring innovators for their dynamism and contributions to the insurance business.
This discussion delves deep into the societal role of compulsory insurance, examining its historical roots, market dynamics, and future innovations. With over 40 years of industry expertise, Nasco France has emerged as a leading reinsurance broker in the MENA region and ranks among the top three in France. At the helm of its reinsurance broking arm, Nasco Re, is Joe Azar, a seasoned veteran with 42 years of experience. Joe not only spearheads innovative strategies but also actively shapes dialogues around risk, regulation, and collective welfare—as evidenced by his celebrated presence at Nasco Re gala dinner during The Tenth International Aqaba Conference.
Through this comprehensive dialogue, Joe Azar offers a panoramic view of the mandatory insurance landscape—one that intertwines historical wisdom with modern innovation. His insights not only illuminate the critical role that compulsory insurance plays in fostering collective resilience but also beckon stakeholders to envision a future where public-private collaboration and groundbreaking technology create a more inclusive, equitable, and secure global market.
In this exclusive interview, Joe Azar shares his insights into the evolution of mandatory insurance, its impact on economic and social stability, and the transformative role of technological advancements and strategic alliances in shaping the future of the industry.
Success Stories in the Region
BL: Can you highlight a particularly successful case of mandatory insurance implementation in the MENA region, and what made it effective in ensuring broad-based coverage?
Joe Azar: When we speak of Mandatory insurance , we tend to think only of Motor TPL and / or Health lines of business. Voluntary insurance might be confronted to anti selection and low penetration. The compulsory nature of a similar scheme would permit larger spread translating into more stable results and definitely higher pricing efficiency.
To optimise penetration and avoid low uptake in regions with limited awareness, public support in the form of campaigns to explain benefits of product and commit prompt handling of claims may prove very useful to encourage enrolment .
A successful implementation will depend on strong enforcement , attractive benefits, affordable prices and quick honoring of claims .
Government backing is also instrumental to reinforce credibility of any mandatory insurance scheme .
BL: What are the primary concerns raised by consumers, insurers, and regulators regarding the implementation and pricing of compulsory insurance, and how can these concerns be mitigated?
Joe Azar: When risk based pricing appears to be on the high side , triggering limited accessibility and compliance , experience shows the need for public subsidies to promote higher participation for a mandatory scheme . Nasco has experienced this specific funding requirement in respect of a crops insurance scheme , where premium levels for farmers would have been prohibitive without the financial support for the vulnerable segment of population.
It is advisable to avoid flat pricing for All and elect preferably for targeted subsidies linked to premium affordability .
Flat pricing approach may look simpler to implement but would generate resistance from potential participants with low risk . Risk adjusted approach sounds more fair but remains difficult to implement from a political and social perspective .
When benefits are transparent and tangible like those covered under Health and Motor TPL , and claim payouts are timely released , insureds will tend to better accommodate pricing adjustments . However when risks are perceived as remote such as for Nat Cat perils , high premium levels are likely to be more resisted .
We may therefore conclude pricing sensitivity is correlated to insureds’ perception of the need for Coverage .
In order to arrive to adequate premium levels, insurers should use extensive databases and strong modeling tools to reach a tariff per segment of exposure.
Public vs. Private Approaches
BL: What are the key differences in how the public and private sectors approach mandatory insurance, and how do these differences impact policy design and implementation?
Joe Azar: The exclusive public approach, backed by governments, is usually focused on nationwide protection against disasters . Premium levels are made reasonable thanks to subsidies . However the possible high frequency and/ or exceptional severity of losses might put a heavy strain on the long term sustainability .
The pure private approach relies on insurers only to provide coverage with enforcement being supported by regulations. Here, the Management and operational efficiency tend to be more enhanced than under pure public approach . The technical pricing reflecting exposure could result in insurance cost being unaffordable for low income population .
The blended approach with Public Private partnership gives insurers the distribution role whilst Management and other areas of operation are shared between the two parties . The Government will support with regulation and premium subsidies in addition to carrying a share of the risk . The TCIP Earthquake pool in Turkey is a successful model of PPP . Established in 2000, this pool is playing a pioneering role in the Turkey Disaster risk Management , despite the continued challenge re penetration and insurance gap.
Economic and Social impact
BL: Do you agree that premium income may lag behind the development of claims if the changing risks due to climate change are not properly accounted for in calculating premiums?
Joe Azar: The pooling concept in managing risks protected by mandatory insurance generates a wide spread reducing insurance gap and restricting reliance on public intervention . Reinsurance will offer stability in results and incontestably higher resilience and sustainability . Premium volume and/ or surplus generated by the pool will be invested in the economy.
From a social perspective, mandatory schemes ,covering healthcare or Nat cat, extend their offer for protection to low income groups who would have been otherwise left without insurance . The pooling mechanism of risk sharing promotes social solidarity with the low-risk segment subsidising the high-risk insureds . In the event of loss , the prompt payment of indemnity preserves the well being and translates into reduced social Vulnerability and more peace of mind.
Tech-Driven Transformation
BL: How are technological advancements—such as AI in risk assessment and blockchain in claims transparency—reshaping the landscape of mandatory insurance, and what should stakeholders anticipate in the near future?
Joe Azar: Digital platforms can speed up process and reduce administration cost for enrolment and claims handling .
The integration of premiums in bills for services rendered by utilities ( Electricity , water/ telecom ) would permit collection in instalments at reduced cost .
Under crops insurance ,satellite high resolution imagery used with AI permit the assessment of damage without field visits by loss adjusters .
Parametric Reinsurance triggered by a given rainfall level or Earthquake magnitude, and providing for Non indemnity payouts could represent an efficient risk transfer tool for Nat cat perils mandatory schemes .
