The GCC insurance market is expected to grow to $36.1 billion in 2024 from $29.2 billion in 2019, according to a report by Alpen Capital. The anticipated increase in market growth stems from regional governments push to strengthen regulations, introduce mandatory insurance lines and diversify the economies.
The GCC insurance market has witnessed slow movement in Gross Written Premium (GWP) owing to a sluggish economy between 2016 and 2018.
Sameena Ahmad, managing director of Alpen Capital, said that, “Going forward, we anticipate the GCC insurance sector to grow at a moderate pace owing to economic revival, [a] growing population, strengthening regulatory reforms and continued implementation of mandatory insurance coverage. Infrastructure development, in line with upcoming mega events, is expected to further aid growth in the segment.”
The GCC insurance landscape is prime for further development as regional governments are looking to enhance the regulatory system. Also, the GCC countries have developed long-term national strategies to diversify economies away from the traditional oil and gas sector.
The region’s insurance penetration will remain between 1.8 percent and 1.9 percent from 2019 to 2024, below the global average of 6.1 percent.
The UAE insurance market is anticipated to reach $15.6 billion in 2024 from $12.8 billion in 2019, with a CAGR of 4.2 percent. According to the report, the UAE and the Kingdom of Saudi Arabia are the two top economies dominating the region’s insurance sector, accounting for 44.3 percent and 33.6 percent of the region’s GWP last year.