Dubai: UAE and Saudi Arabia are the largest markets for insurance products in the Gulf Cooperation Council Countries (GCC), according to Alpen Capital.
Among the GCC countries, Saudi is considered as the major driver of growth, with its insurance industry forecast to grow at a cumulative annual growth rate (CAGR) of 26.5 per cent between 2012 and 2017. Second on the list is the UAE, where the insurance industry is expected to post a CAGR of 14 per cent during the same period. Kuwait’s insurance market, with a CAGR of 7 per cent, is the smallest in the region.
While the insurance penetration is likely to double in the next few years, the industry continues to face some challenges. According to Alpen Capital’s report, the market is overcrowded with domestic and international companies. Competition is quite fierce especially in the area of motor and medical insurance.