S&P Warns Of GCC Insurance Slowdown

In its first report card on the insurance sector in the region, the ratings agency said heavy state and private sector investment in the region’s economy and infrastructure has caused insurable risk volumes to increase. It warned the increase in demand for credit risk opinion from policyholders could “hamper” development of insurance in the GCC.

GCC Growth Hampered By Low Populations

Low population numbers in GCC countries is restricting the scale of growth throughout the region’s insurance markets, an A.M Best Co report has claimed. The credit rating agency also said “fierce” competition among local insurers was hampering growth in some segments. “Foreign insurers and reinsurers are aware of the opportunities the GCC offers in comparison with the West’s stagnant insurance markets. However, competition, particularly among local insurers, remains one of the biggest challenges to companies operating within the GCC,” said Yvette Essen, head of market analysis for A.M. Best’s global financial services division.

New S&P Scale Reveals First Gulf Ratings

Standard & Poor’s has assigned its first regional credit ratings for the GCC after launching a new assessment scale in February. The outlook for UAE-based Emirates Insurance Co is set at gcAA under S&P’s recently-launched scale, while Bahrain National Insurance has secured the same rating. Both companies have a stable BBB+ international rating. The ratings reflect both companies’ strong operating performance, capitalisation, investments and liquidity, S&P said.

GCC Insurance Markets

With the 6th Gulf Insurance Forum taking place in Bahrain, Policy casts its eye over the GCC insurance markets and reviews the latest developments from the leading players including Tawuniya and Oman Insurance Company.