Qatar: P&C insurance market has modest growth potential and is resilient
Source: Middle East Insurance Review | Sep 2024
The Qatari non-life insurance sector has modest growth potential and should remain resilient, even if economic growth slows down, said S&P Global Ratings (S&P).
The global credit rating agency assessed the insurance industry and country risk for the property/casualty (P&C) sector in Qatar (AA/Stable/A-1+) as intermediate. This assessment is comparable with those for several other P&C markets, notably those in neighbouring Gulf Cooperation Council markets like the United Arab Emirates, Saudi Arabia and Kuwait, said S&P.
Following estimated economic growth of about 1.6% in 2023, S&P expects real GDP to expand by 2% on average in 2024-2025, supported by nonhydrocarbon sectors such as wholesale and retail trade, finance and hospitality. Nevertheless, nonhydrocarbon economic activity will slow from its peak growth of 6.8% in 2022 when Qatar hosted the FIFA World Cup.
Despite heightened geopolitical tensions in the Middle East, S&P anticipates that macroeconomic conditions in Qatar will remain broadly stable.
S&P’s view of industry risk for Qatar’s non-life insurance sector is based on its strong operating performance — which the rating agency expects the sector to maintain over the next two years — and its supportive institutional framework.
Once fully implemented, Qatar’s mandatory health scheme should further support the sector. More than 80% of the market’s total revenue is generated by 10 insurers, collectively. M