Insurance demand affected by political risks

Global slowdown of financial markets and political instability threaten insurance development in the Middle East. While most markets are exhibiting two-digit growth in this sector, AM Best has henceforth forecasted visibly lower growth. Just like GDP, gross premium growth has been estimated at 5%, and even less so in countries which witnessed the Arab spring. In order to address the situation, major insurers have conducted restructuring moves with a view to acquire a profile similar to that of their international competitors. Many other actors also devised prudent investment policies. Regulatory authorities in the various countries concerned have reacted by imposing strict criteria for investment allocation in markets where competition remains quite fierce despite recession risks.