AM Best turns negative on GCC insurance markets
Wednesday, 06 10 2020, Category: Rating, Country: Gulf Cooperation Council
Global financial services ratings agency A.M. Best has revised its outlook on the Gulf Cooperation Council (GCC) insurance markets to negative, amid economic downturn across the region and an expectation of fading insurance demand.
Lower oil prices and COVID-19 containment measures across the region has resulted in significant economic downturn, notes A.M. Best.
Supply chains, travel, and consumer spending have all been adversely impacted by the pandemic across the region, and while governments in certain countries across the GCC have been quick to act, A.M. Best warns that there’s already a “sharp slowdown in economic activity”.
Exacerbating the challenge for GCC insurers, oil prices declined in March 2020 on the back of reduced demand as a result of COVID-19-induced containment measures, which resulted in a supply/demand imbalance.