GCC: Growth prospects in insurance market

Source: Middle East Insurance Review | Jun 2024

Growth prospects for the insurance sector remain plentiful in the insurance markets of the Gulf Cooperation Council (GCC), said global credit rating agency AM Best.

In its Best’s Market Segment Report, “Market Segment Outlook: Gulf Cooperation Council Insurance”, AM Best said that increasing regulatory scrutiny is also leading to a growing focus on risk management and corporate governance.

AM Best is maintaining its market segment outlook for the insurance markets of the GCC at ‘Stable’.

On the other hand, moderating factors identified by AM Best’s analysts include the highly saturated nature of the GCC markets, with intense competition.

The fierce competition is driving pricing pressure and threatening technical margins, while rising operating costs – the result of improving regulatory regimes and the implementation of IFRS17 – are squeezing margins, particularly for small- and mid-tier companies. M

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