The GCC's insurance market is expected to grow to $36.1bn (Dh132.58bn) in 2024 from $29.2bn in 2019, as regional governments push to strengthen regulations, introduce mandatory insurance lines and diversify the economy.
The overall gross written premium (GWPs) in the six-member economic bloc of the GCCGulf countries is also expected to go up as countries such as Oman and Bahrain make medical insurance mandatory for its residents, Alpen Capital said in its latest GCC Insurance Industry report.
"Within healthcare and auto insurance, premiums will go up as the expatriate population will continue to rise. In terms of population diversification, the percentage of the GCC population aged above 50 years currently stands at 13.5% and that is expected to increase to 17.7% by 2024. So growth in the ageing population itself will result in higher premiums. We will have the same number of policies but pricing, given the ageing of the population, will go up," said Krishna Dhanak, executive director at Alpen Capital.
Within healthcare and auto insurance, premiums will go up as the expatriate population will continue to rise"
The GCC insurance industry, which has maintained a positive momentum over the years, witnessed a slowdown in GWPs due to sluggish economic conditions during 2016 and 2018.
"Going forward, we anticipate the GCC insurance sector to grow at a moderate pace owing to economic revival, [a] growing population, strengthening regulatory reforms and continued implementation of mandatory insurance coverage," Sameena Ahmad, managing director of Alpen Capital said. "Infrastructure development, in line with upcoming mega events, is expected to further aid growth in the segment."
The UAE insurance market is estimated to reach $15.6bn (Dh57.25 billion) in 2024 from $12.8bn in 2019, registering a CAGR of 4.2%. The non-life segment is estimated to grow 3.9% to $12bn (Dh44 billion) in 2024, led by growth in premiums from mandatory health and motor insurance lines and the development of large-scale infrastructure projects ahead of Expo 2020 Dubai.
The UAE and Saudi Arabia, the two top economies of the region, continue to dominate the insurance sector accounting for 44.3% and 33.6% of the region's GWP in 2018, respectively.