GCC - Car ins. prices continue to decline in 2019
Tuesday, 04 02 2019, Category: Insurance and Reinsurance, Country: Gulf Cooperation Council
Most insurance companies in the region will compete in this sector as it generates direct liquidity for companies, the brokerage firm AM Best said on the sidelines of a takaful insurance conference in Dubai yesterday.
AM Best, the credit rating agency, predicted that car insurance prices will continue to decline this year, noting that most companies in the region's markets are competing in this sector because it generates direct liquidity for companies.
On the sidelines of a Takaful insurance conference in Dubai, the company stressed the importance of companies taking profits from insurance business and sectors instead of investment profits.
Moody's reported that takaful insurance companies in the Gulf markets recorded a 7% growth in premiums last year.
"The premium collection continues to be a problem for insurance companies in the GCC markets, including the local market, especially in the insurance sectors," said Vasilis Katsibis, general manager for market development at AM Best, a MENA credit rating agency. "He pointed out that this is a problem for the market and affects the capital, and these premiums are included in the financial statements as installments written, but not yet collected.
Source: Teller Report