Middle East, aggravation of flood risks

According to AM Best, the Cooperation Council Gulf countries (CCG) stand among the least exposed to natural catastrophes. Out of the 171 countries taken into account by the World Risk Index, published by the United Nations, Qatar is standing in the 171st rank with a risk rate set at 0.08%. Among the other States in the region, Saudi Arabia ranks in the 169th position (1.1%), Bahrain in the 164th (1.76%), United Arab Emirates are 163rd (1.84%), Oman is 152nd (2.75%) and Kuwait 141st (3.26%).

While these countries are hardly exposed to damage caused by winds or earthquakes, they are not safe from rising flood risks. A series of recent events came to confirm this trend with violent storms, abrupt water rises and cyclones in all of the regional countries in February 2016, in Oman in June 2015, November 2011 and June 2010.

The increase in insurance penetration rate is enhancing the growing transfer of the personal floods and corporate risks to insurers and reinsurers who are gradually sustaining higher and higher exposure.