AM Best is maintaining its market segment outlook for the insurance markets of the Gulf Cooperation Council (GCC) at stable.
In its new Best’s Market Segment Report, “Market Segment Outlook: Gulf Cooperation Council Insurance”, AM Best notes that growth prospects for the insurance sector remain plentiful as new insurable risks enter the market while high oil prices continue to fuel the region’s fiscal surpluses and provide resilience to challenging global macroeconomic conditions. Increasing regulatory scrutiny is also leading to a growing focus on risk management and corporate governance.
On the other hand, moderating factors identified by AM Best’s analysts include the highly saturated nature of the GCC markets, with intense competition driving pricing pressure and threatening technical margins, while rising operating costs – the result of improving regulatory regimes and the implementation of IFRS 17 – are squeezing margins, particularly for small- and mid-tier companies.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.
