Alpen Capital announced the publication of its latest report on the GCC Insurance Industry for the year 2019. The report provides a comprehensive overview of the GCC insurance sector and outlines the recent trends, growth drivers and challenges in the sector. It also profiles some of the prominent insurance companies in the region.
The GCC insurance industry which maintained a positive momentum over the years, witnessed a slowdown in GWP’s due to sluggish economic conditions during 2016 and 2018. However, going forward, we anticipate the GCC insurance sector to grow at a moderate pace owing to economic revival, growing population, strengthening regulatory reforms and continued implementation of mandatory insurance coverage. Additionally, governments’ proactive economic and liberalization reforms, will support growth in the sector going forward. The M&A sphere in the GCC insurance sector has remained active over the past two years with several intra-regional and cross border transactions. In addition to interest from foreign players, we expect to see continuing M&A activity as companies develop technological capabilities to broaden their product offering and improve profitability.
The GCC insurance market is projected to grow at a CAGR of 4.3% from US$ 29.2 billion in 2019 to US$ 36.1 billion in 2024. Sustained economic growth, increase in population and substantial infrastructure development are among the leading factors that will facilitate growth of the sector. Additionally, governments’ efforts to strengthen regulations, introduce mandatory lines and diversify the economy are also likely to drive GWP for the insurance industry.
The gradual slowdown of the insurance industry witnessed over the past two years is likely to continue until 2024. However, GWP is expected to improve relative to the subdued levels of growth recorded in the recent past, as long-term growth prospects continue to remain positive.
Insurance penetration in the region is expected to remain between 1.8% - 1.9% from 2019 - 2024, below the global average of 6.1%, offering scope for growth in the sector. Insurance density in the region is expected to increase from US$ 502.9 in 2019 to US$ 555.8 in 2024.
To download the report, please click here.