GCC: decreasing profits for insurers

All insurance companies operating in the Gulf Cooperation Council (GCC) countries could face a pressure on their profit margins.

This is reflected in a recent report published by the consulting firm Alpen Capital. This decline is accounted for by:

• strong competition in a fragmented market: 200 insurance companies for 54 million inhabitants,
• low insurance penetration rate
• lack of standardized regulation within the CCG countries
• high exposure to risky assets

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