Dublin-based Research and Markets announced the addition of “Opportunities in Middle East Insurance Market” to their offering. The report is designed to “help clients to analyze the leading-edge opportunities critical to the success of the insurance industry in the region,” said the bulletin.
The report focuses on evolving markets in Bahrain, Iran, Israel, Saudi Arabia, United Arab Emirates, Qatar, Oman, Kuwait, Jordan and Turkey. R&M said; “The forecast given in this report is not based on a complex economic model, but is intended as a rough guide to the direction in which the market is likely to move. This forecast is based on a correlation between past market growth and growth of base drivers.”
Among several conclusions R&M observes that “the insurance market in the Middle East is lagging behind other financial service sectors in the region, as evidenced by low penetration, undercapitalized supply and an underdeveloped regulatory framework.
“However, the Middle East offers vast opportunities for existing as well as new players and is expected to grow at the compound rate of 18-20 percent in near future, attributed to its highly untapped market, rising awareness level, health consciousness and initiatives taken by government of respective countries in region.
“Looking at country-wise performance, Turkey has written the highest premium among all the Middle East countries, followed by Israel, Iran and UAE while Oman remained at the lowest position in past two years (2004 & 2005). But in terms of growth, UAE took the lead with year on year (YOY) growth rate of 27.38 percent in 2006 followed by Turkey at 23.68 percent.
The report also includes the following ” Key Findings:”
– The rising graph of traffic accidents and death rate has been the main driver for the Middle East insurance industry.
– Bancassurance will emerge as a big opportunity in the region.
– Opportunities for car insurance market well emerge as the number of new cars are expected to grow at appreciable rate.
– Takaful insurance (Islamic insurance), whose global market is expected to grow fivefold by 2015, is expected to emerge as a big opportunity.
Source: Research and Markets
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