GCC insurance to outpace GDP, says new study

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The insurance sector in the GCC countries will continue to grow faster than GDP over the next two years, according to the latest regional barometer launched by the Qatar Financial Centre Authority.

According to the barometer, unveiled at the 29th Global Arab Insurance Federation Conference in Marrakech, Morocco last week, confidence in the GCC’s insurance sector is high.

Growth is helped by relatively low penetration in the GCC and aggressive infrastructure spending by governments in the bloc.

The survey questioned 20 executives from regional and international insurance companies and agencies operating in the GCC, where the industry is valued at about US$15 billion.

The GCC insurance barometer follows the QFC Authority’s GCC reinsurance barometer, which was published in September. Both metrics are expected to provide regular appraisals of the sector in the GCC.

While 60 per cent of respondents had high hopes for the future, an equal number said regulation of the industry in the GCC was inadequate. The sector was also facing issues with low levels of risk retention, political uncertainties in the low levels of risk retention, political uncertainties in the region and challenging global economic prospects.

A sizeable 90 per cent of executives said commercial insurance rates were low while 58 per cent felt that personal rates were also low. About 70 per cent said prices would remain stable over the next two years.

In terms of profitability, 70 per cent and 53 per cent said there was low profitability in commercial and personal lines, respectively. Also, 90 per cent and 79 per cent expected stable or improving business, respectively, in the near-term.

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Reading Time: 1 minute

The insurance sector in the GCC countries will continue to grow faster than GDP over the next two years, according to the latest regional barometer launched by the Qatar Financial Centre Authority.

Reading Time: 1 minute

The insurance sector in the GCC countries will continue to grow faster than GDP over the next two years, according to the latest regional barometer launched by the Qatar Financial Centre Authority.

According to the barometer, unveiled at the 29th Global Arab Insurance Federation Conference in Marrakech, Morocco last week, confidence in the GCC’s insurance sector is high.

Growth is helped by relatively low penetration in the GCC and aggressive infrastructure spending by governments in the bloc.

The survey questioned 20 executives from regional and international insurance companies and agencies operating in the GCC, where the industry is valued at about US$15 billion.

The GCC insurance barometer follows the QFC Authority’s GCC reinsurance barometer, which was published in September. Both metrics are expected to provide regular appraisals of the sector in the GCC.

While 60 per cent of respondents had high hopes for the future, an equal number said regulation of the industry in the GCC was inadequate. The sector was also facing issues with low levels of risk retention, political uncertainties in the low levels of risk retention, political uncertainties in the region and challenging global economic prospects.

A sizeable 90 per cent of executives said commercial insurance rates were low while 58 per cent felt that personal rates were also low. About 70 per cent said prices would remain stable over the next two years.

In terms of profitability, 70 per cent and 53 per cent said there was low profitability in commercial and personal lines, respectively. Also, 90 per cent and 79 per cent expected stable or improving business, respectively, in the near-term.

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