MANAMA: The GCC insurance industry continues to grow at a double-digit CAGR despite a challenging 2014, backed by increased awareness and favorable regulatory changes in most of the GCC nations, according to an expert.
“The industry is thus expected to continue to grow in the upcoming period, driven by government spending on infrastructure and a gradual increase in insurance penetration level in the region. However, the persistent sluggishness in oil prices might put pressure on the GDP in the near term, creating challenges for its growth. In light of all these facts, the outlook for the GCC insurance industry is cautiously positive in the near to medium term”, says Sameena Ahmad, Managing Director, Alpen Capital (ME) Limited.
Alpen Capital announced the publication of its GCC Insurance Industry report. The report depicts the current scenario of the insurance industry across the GCC countries and major insurance segments, including life and non-life. The report also covers the recent trends, growth drivers, and challenges faced by the industry, in addition to presenting an outlook, in terms of premiums until 2020. It profiles some of the select insurance companies in the region, while evaluating their financial and valuation metrics.
“Currently, the GCC insurance industry is transitioning from being a protected industry into a globally competitive sector. With governments realizing the importance of an efficient and stringent regulatory requirement to foster growth, the industry is seeing several reforms to combat challenges such as slowdown in profitability and premium growth resulting from intense competition. Soaring valuations and limited market share are discouraging consolidation in the industry; however stricter solvency and capital requirement regulations may push small players to consider M&A route to sustain and grow in the industry”, says Sanjay Vig, Managing Director, Alpen Capital (ME) Limited.
