GCC: Takaful insurance market in H1 2021

A report published by Moody's Investors Service shows that Takaful insurance companies operating in the Gulf Cooperation Council (GCC) countries recorded a slight 0.5% turnover increase in the first half of 2021. During the said period, the results of Takaful operators declined.

This underperformance is mainly due to the increase in the number of claims and the growing competition between companies.

Ongoing low interest rates and volatile financial markets are also some of the challenges facing Takaful insurers in the region.

The rating agency foresees an increase in technology investment and M&A activity, mainly in Kuwait, Saudi Arabia and the United Arab Emirates.