Insurance Coverage Growing In MENA Region

By Editorial 13 March, 2014

The availability and uptake of insurance in the Middle East and North Africa (MENA) region is growing steadily, according to the 2nd MENA Insurance Barometer, published by the Qatar Financial Center Authority on March 10, 2014.

The report says insurance penetration is on the rise, demographics are "favorable," and regional insurance premiums are expected to outpace gross domestic product (GDP) growth over the next 12 months.

Insurance penetration rates are substantially lower in MENA than in more established western markets, currently around 1.3 percent (premiums as a share of gross domestic product) – a mere fifth of the global average of 6.5 percent.

While the insurance sector is showing strong growth – on account of infrastructure projects and high economic growth rates in the region – the number of foreign companies offering insurance locally isn't expected to experience the same boom, potentially limiting expats to unfamiliar firms. Respondents to the QFCA's survey said that prospects for foreign insurers in the region seem to be deteriorating, with only 35 percent of executives expecting that foreign insurers will gain market share over the next twelve months, down from 50 percent a year ago.

Tags: Insurance | Investment | Business | Insurance | Gross Domestic Product (GDP) | Qatar | Construction | Inflation | Expats | Africa | Middle East |


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