Insurers in the GCC countries are exposed to sizeable levels of receivables, putting them at risk of added provisioning and pressurising their profitability, states Moody’s Investors Service in a report. Insurance companies in the Gulf Cooperation Council (GCC) will need to accustom themselves to increased provisioning and heightened pressure on...
The insurance sector in Kuwait has positive medium term prospects, according to a report by S&P Global Ratings. Supported by relatively low product risk, wherein most insurers predominantly retain short-tail motor and medical business, and therefore have predictable claim settlements, the P/C and health sector in Kuwait remains more or...
The region’s reinsurance market has been characterised by competitive pricing pressures, overcapacity and increased incidence of large losses, with the additional fallout from COVID-19 and volatile oil prices, according to an AM Best report. The composition of the region’s reinsurance market is beginning to stabilise following turbulence in recent years....
Zurich’s 2017-2019 claims data highlights some of the top health risks in the region. The number of claims on life insurance and critical illness claims are on the rise, according to Zurich Middle East claims data, amounting to about USD110 million paid over the period 2017-2019. According to the 2020...
S&P Global Ratings highlights some key risks that could affect GCC insurers’ earnings and credit conditions in 2020. While economic growth in most Gulf countries is expected to pick up in 2020, this may not translate to premium growth, according to a report titled ‘Competition, Asset Risk And Regulation: The...
Swiss Re’s latest Sigma report forecasts a period of weak growth with low inflation and low interest rates. The silver lining is that insurance will play a key role in bolstering economic resilience and hence will continue in an upward trend. The next two years have forecasted to have slow...
Alpen Capital’s latest report focuses on the current state of the insurance industry across the GCC nations, including recent trends, growth drivers and challenges. The GCC insurance industry, which maintained a positive momentum over the years, witnessed a muted growth in the gross written premiums during the past two years...
AM Best is monitoring the high risk environment in Lebanon which have potential to further escalate, according to a recently released report. Following recent protests in response to political leaders’ inability to resolve the country’s economic deadlock, the impact of heightened economic and political risk on insurers in Lebanon is...
While local companies are still lagging their global counterparts when it comes to workplace savings plans, governments and regulatory authorities are pushing for reform, states Zurich International Life’s latest End of Service Benefits (EoSB) Survey. Amidst the news of the Dubai International Finance Centre (DIFC) soon embarking on introducing a...
Subdued premium growth will continue to add pressure on profitability, particularly for smaller players in Saudi Arabia, resulting in run-off activity should a new regulation on minimum capital kick in, states Moody’s. Moody’s expects more insurance firms in KSA to get into run-off than consolidation efforts owing to lack of...
