GCC insurance coverage market set to develop as well being cowl turns into obligatory

The insurance coverage market within the Gulf Cooperation Council
(GCC) is predicted to develop over the approaching years as extra international locations implement
obligatory medical health insurance cowl, the inhabitants will increase and the economic system
experiences a revival, a report predicts.

Medical health insurance stays one of the essential
enterprise traces within the GCC and can proceed to drive the insurance coverage market
throughout the area, based on the report by Alpen Capital (ME) Restricted.

Presently, GCC international locations are every at totally different levels of
rolling out obligatory medical health insurance, which is more likely to come into impact in
2020.

Sameena Ahmad, managing director of Alpen Capital (ME)
Restricted, stated a gentle rise within the inhabitants, coupled with a rise in
older folks throughout the area, is predicted to spice up medical health insurance premiums.

In accordance with the Dubai-headquartered funding banking
advisory agency, the GCC insurance coverage market is projected to develop at a compound
annual development fee (CAGR) of four.three% from US$29.2bn in 2019 to US$36.1bn in 2024.

The gradual slowdown of the insurance coverage trade witnessed
over the previous two years is more likely to proceed till 2024, nevertheless GWP is
anticipated to enhance relative to the subdued ranges of development recorded within the
latest previous, as long-term development prospects proceed to stay optimistic.

Insurance coverage penetration within the area is predicted to stay
between 1.eight% and 1.9% from 2019 to 2024, beneath the worldwide common of 6.1%,
providing scope for development within the sector, the report stated.

Life insurance coverage GWP is projected to develop at a CAGR of four.9%
to achieve US$four.7bn in 2024. The non-life insurance coverage market is predicted to develop at
a CAGR of four.three%, primarily aided by obligatory insurance coverage enterprise traces, new
rules bettering the pricing of insurance policies, an anticipated restoration in financial
exercise, and a subsequent rise in infrastructure investments.

The non-life section will proceed to comprise 86.9% of
the whole insurance coverage market at US$31.4bn in 2024.