News
Middle East premiums up, but regional figures dip
| June 29, 2010 by Tracey Scott
Life premiums in the Middle East and Central Asia reached US$7bn in 2009, up 0.5 per cent on 2008, the latest sigma report from Swiss Re has concluded.
In Saudi Arabia, the life sector continued growing at double-digit rates through 2009, up 61 per cent. The report said the strong growth was boosted by strong demand for shari’a-compliant insurance.
Premium growth was weak in the UAE, Jordan and Oman where life premiums dipped 0.5 per cent, 1.6 per cent and 7.8 per cent in 2009 respectively. The report concluded that life premium growth in certain markets was restricted by the reduced demand for life products by the region’s large expatriate population.
But it added: “The prospects for the life sector appear promising. With the emergence of shari’a-compliant insurance, huge untapped opportunities exist in the region. Shari’a-compliant insurance and pension products are expected to drive future growth.”
Non-life premium growth in the UAE decelerated significantly in 2009, while Saudi Arabia reported a 25 per cent increase to US$3.6bn. Oman also increased 16.5 per cent year-on-year to reach US$525m in total premium for 2009.
Total non-life premiums in Kuwait dropped from USD$541 in 2008 to US$369m last year, while Bahrain saw a slight dip from US$359m in 2008 to US$357 last year.
