UAE – Need to increase insurance capital in 2018
Friday, 02 23 2018, Category: Insurance and Reinsurance, Country: U.A.E
GCC countries are expected to witness strong growth in the insurance sector this year, despite ongoing regulatory and competitive challenges and slow economic activity in some GCC countries.
“We anticipate that insurance markets in the GCC will continue to grow in 2018, despite ongoing slow economic activity in some countries in the GCC,” Emir Mujkic, a Standard & Poor’s analyst, said in a recent report.
New regulations with higher capital requirements and other demands are expected to add to costs and increase pressure on profitability for some insurers. Some insurers will have to adapt their business models, and others, particularly in the UAE, will need to raise additional funds or look for alternative ways to comply with the new regulations. As insurers try to improve economies of scale, S&P analysts see some increased pressure on the industry to consolidate in 2018.