GCC Region: War and the insurance market

According to Standard & Poor’s (S&P), the outlook for the insurance market in the Gulf Cooperation Council (GCC) region is expected to remain stable over the short to medium term, despite ongoing geopolitical tensions.

The sector’s resilience is underpinned by strong capitalization, solid profitability, and improving revenue trends. These strengths position insurers in the region to better absorb shocks arising from an uncertain environment.

The impact of the conflict on the insurance sector is currently limited, with potential pressures more closely tied to financial market volatility and investment portfolio performance.

However, S&P cautions that longer-term risks persist. Any escalation of the conflict could weigh on regional economic growth and put pressure on insurers’ credit ratings.