AM Best is maintaining its 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 current economic conditions remain resilient to regional geopolitical tensions; albeit should there be an escalation, the GCC could be adversely impacted by second order effects. At the same time, opportunities for insurance sector growth remain plentiful as new products and increased insurable risks remain an important feature of the market.
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. Furthermore, elevated oil price fluctuation brings potential economic uncertainty, particularly for those GCC countries with higher dependence on the hydrocarbon sector, as well as those with higher breakeven oil prices.
