Oil crisis will have no mercy on Kuwaiti insurance sector
Tuesday, 01 26 2016, Category: Insurance and Reinsurance, Country: Kuwait
It seems that the oil price decrease affected all sectors of the Kuwaiti national economy including the insurance sector, where the demand for insurance policies decreased in all the large projects of the country.
Insurance companies rely largely on the issuance of insurance policies which help them achieve profits such as the development projects launched by the government in past years. However, this situation will not last for long as the oil barrel price has decreased to very low levels. Therefore, the government decreased expenditures and removed subsidies as the Kuwaiti oil barrel price was below USD 22. The insurance sector usually receives a percentage of agreements and contracts signed between insurance companies including oil contracts and refineries.
Source: Al Anba - Kuwait