The profitability metrics of insurers in Qatar, particularly underwriting performance and ROE, outperform those of other GCC insurers, according to S&P Global Ratings credit analyst Emir Mujkic.
In a report titled ‘GCC Insurers' Growth Prospects Could Slow In Some Markets’, released on 3 March, Mr Mujkic said that exposure to natural catastrophes and potential earnings volatility from weather events is relatively low for Qatari insurers.
He noted that there are high barriers to entry which limit the threat of new entrants and constrain competition in the Qatari market.
On the other hand, exposure to equity and real estate assets is high for Qatari insurers and could cause earnings and capital volatility.
In the absence of new government-driven insurance schemes, growth prospects in the insurance sector are modest.