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Moody»: Gulf insurance market is heading for further growth despite falling oil prices
OCTOBER 22, 2015
Cairo - Reuters: «Moody's Investors Service» said Thursday that small insurance market in the Gulf Cooperation Council (GCC) tended to grow strongly between 2016 and 2018, to remain the fastest in the world, despite the decline in the price of oil.
The agency said the credit ratings in a report that Gulf insurance market increased to more than three-fold between 2006 and 2014, where premiums grew to $ 22.2 billion from $ 6.4 billion, a compound annual growth of 16.8 percent rate.
But it happened in a very uneven rates of growth among the countries of the region, where in Qatar ratio stood at 20.7 percent , compared with 6.4 percent in Kuwait, according to »Moody». Mr Mohamed Ali Lundy, assistant vice president and analyst at rating agency «the prospects for positive growth in the region will continue to attract insurance companies - local and foreign - to invest in Gulf markets, but it is likely to lead to increased competition, and that puts more pressure on the profitability of the sector that revolves already between weakness and mediation.
»expected« Moody »be the growth of the sector, driven by factors such as growing wealth in the region and the spread of insurance coverage.
At present, less than the proportion of insurance penetration in the Gulf about two percent of GDP, with the exclusion of the United Arab Emirates, Bahrain, This compares with 5.2 percent in Austria, which match the premiums by its counterpart sizes in the Gulf.
By comparison, the prevalence of insurance in the United States 7.3 percent, and in Britain 10.6 percent, according to the «Moody».
But the report also pointed to risks such as declining prices Oil potential political unrest, despite strong creditworthiness of sovereign entities, with a rating of four Gulf states «Aa3» or higher.
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OCTOBER 22, 2015
Cairo - Reuters: «Moody's Investors Service» said Thursday that small insurance market in the Gulf Cooperation Council (GCC) tended to grow strongly between 2016 and 2018, to remain the fastest in the world, despite the decline in the price of oil.
The agency said the credit ratings in a report that Gulf insurance market increased to more than three-fold between 2006 and 2014, where premiums grew to $ 22.2 billion from $ 6.4 billion, a compound annual growth of 16.8 percent rate.
But it happened in a very uneven rates of growth among the countries of the region, where in Qatar ratio stood at 20.7 percent , compared with 6.4 percent in Kuwait, according to »Moody». Mr Mohamed Ali Lundy, assistant vice president and analyst at rating agency «the prospects for positive growth in the region will continue to attract insurance companies - local and foreign - to invest in Gulf markets, but it is likely to lead to increased competition, and that puts more pressure on the profitability of the sector that revolves already between weakness and mediation.
»expected« Moody »be the growth of the sector, driven by factors such as growing wealth in the region and the spread of insurance coverage.
At present, less than the proportion of insurance penetration in the Gulf about two percent of GDP, with the exclusion of the United Arab Emirates, Bahrain, This compares with 5.2 percent in Austria, which match the premiums by its counterpart sizes in the Gulf.
By comparison, the prevalence of insurance in the United States 7.3 percent, and in Britain 10.6 percent, according to the «Moody».
But the report also pointed to risks such as declining prices Oil potential political unrest, despite strong creditworthiness of sovereign entities, with a rating of four Gulf states «Aa3» or higher.
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