LONDON - Tuesday, March 11th 2014 [ME NewsWire]
(BUSINESS
WIRE) Growth rates in the insurance markets of Gulf Cooperation Council
(GCC) countries remain higher than those of developed markets and have
kept pace with those of some key emerging markets according to a new
report from A.M. Best.
A.M. Best’s report, titled, “GCC Growth
Outpaces Developed, Other Emerging Markets”, analysed an extensive
portfolio of companies in 19 countries over the past nine years,
comparing the GCC markets of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia
and the United Arab Emirates with developed markets and those of the
BRIC (Brazil, Russia, India and China) countries. Gross premiums written
(GPW) in the GCC countries had a compound annual growth rate (CAGR) of
21% from 2002 through 2012, the same as Brazil and China, while Russia
was at 18% and India at 16%.
Mahesh Mistry, director, analytics,
said: “Interestingly, growth of GPW in the GCC markets continued to
accelerate from 2010, and despite depressed financial markets, the GCC
insurance sector is continuing to outpace most other markets in the
analysis.”
While far fewer companies operate in emerging markets,
developed markets are seen to be much more congested. However,
developed markets have far more companies with niche strategies focusing
on specific products or segments. By contrast, most companies within
smaller, emerging markets tend to compete across all segments and
product lines, creating intense competition across all market segments.
General
economic growth and public spending in the GCC are likely to increase
in the short to medium term, providing further impetus for the insurance
market. However, much of the recent growth in insurance has come from
compulsory covers. Vasilis Katsipis, general manager, market development
– MENA, South & Central Asia, added: “Companies have taken high
growth rates as a given, but governments are running out of
opportunities to rely on compulsory business to stimulate the market. In
this environment, premium growth is likely to be more subdued than the
historical highs, which in turn puts more pressure on insurers to
segment the market and identify strategies for growth.”
To access a complimentary copy of this report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=222255.
A.M.
Best Company is the world's oldest and most authoritative insurance
rating and information source. For more information, visit
www.ambest.com.
Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
Contacts
A.M. Best Company
Mahesh Mistry, +(44) 20 7397 0325
Director, Analytics
mahesh.mistry@ambest.com
Vasilis Katsipis, +(971) 4375 2782
General Manager, Market Development
A.M. Best - MENA, South & Central Asia
vasilis.katsipis@ambest.com
Rachelle Morrow, +(1) 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
Jim Peavy, +(1) 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com
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