Middle East - Low oil price to impact insurance growth
Saturday, 02 04 2017, Category: Insurance and Reinsurance, Country: Middle East
Fiscal budgets in the Middle East remain under pressure from low oil prices, which is likely to continue to result in reduced government expenditure and negative pressures in terms of insurance business volumes, according to AM Best.
Commercial activity is highly correlated to oil demand and the recent period of low energy prices has depressed gross domestic product (GDP) development and consequently investment and construction across the region, the ratings agency said in a report on Middle East Non-Life and Life.
In light of these market conditions, there has been a slight weakening in a number of A.M. Best ratings in the region during the past 12 months.
Source: Intelligent Insurer