Reason for choosing the book: My reason for choosing this book consists of two parts or aspects; one related to the author and the other to the subject of the book:
The author is a veteran among the first Arabs to enter the world of insurance, having started in the field in the 1960s. What distinguishes him is that he worked in more than one insurance company in more than one country, which gave him great knowledge in the field, in addition to his knowledge, and since he is not new to the profession, nor even to the subject of our study or reading.
He wrote: “The Model Fire Document and the Unified Arab Fire Document: A Comparative Study (2012)”.
The subject of the book: It is not prominent or even clearly known to some people in the field, let alone others, and it would have been better if it had been clearer and more widely used.
A review of the book:
The author wrote about the emergence and development of loss of profits insurance, then the relationship between loss of profits insurance policies and material loss policies, followed by a discussion of the terminology and concepts used in loss of profits insurance. He then wrote about the subject matter of loss of profits insurance, followed by compensation, then advanced loss of profits insurance, and finally concluded by presenting a sample policy for loss of profits resulting from fire.
In the introduction to the book, the author spoke about the importance of the book and then said: “Material damages due to the occurrence of insured risks often lead to consequential losses, including loss of profit.” From this, we understand that loss of profits is in reality a consequential loss of material loss and is not in itself an original loss that occurs independently of the material loss.
The author states that this type of insurance has not received its due share of marketing, and he attributes this to several reasons:
The processes of subscription and compensation settlement are not based on tangible material elements.
The lack of necessary information among many insurance practitioners in Arab countries.
Those who could benefit from this type of insurance underestimate the importance of providing a source of compensation for lost profits.
The cost of insurance (premium) is very high.
Here is a clever insight from the author, as if he is convincing those who can benefit from this type of insurance, where he says: “There is no escaping resorting to this type of cover to ensure the continuity of the establishment’s work instead of resorting to banks to obtain a loan to repair the damages and restart operations when loans are not readily available. By this we mean that banks do not look favorably upon a company that has suffered losses in its business.”
The author attributed the weak effective demand for profit loss insurance to the lack of necessary underwriting skills in managing this type of insurance among "most" Arab insurance companies. He should have simply said "lack of underwriting skills" and stopped there! He should have said "among some" or "many" instead of "most." This is especially relevant considering he wrote his book in 2014, a time when insurance in the Arab world had developed significantly, with Egypt, Lebanon, and Kuwait being prime examples.
As the author states, he adopted a simplified, educational approach. This is true; while browsing through his other books on insurance in general, I found this one easier to read than the others, characterized by its clarity and ease of understanding. This is perhaps due to his extensive and profound experience.
The author says that the Arabic library does not contain a book about profit loss insurance, and when trying to verify this information through multiple search engines, especially book and library search engines, I did not find any other book, and