Insurance facing economic uncertainties

According to A.M. Best, the insurance industry in Kuwait is going through a period of uncertainty. Premium volume is poised to grow in 2013, yet this growth will be below that of most Gulf markets. Non life insurance accounts for the majority of written premiums. The market will benefit from the launch of mega construction projects outlined in "Vision 2035" plan. Those investments are estimated at 129.7 billion USD. A.M. Best remains, nevertheless, skeptical about the implementation of this plan which is dependent on the low GDP progress estimated at 1.1% in 2013. Life insurance remains limited because of the lack of compulsory insurance. Finally, the takaful market is hardly structured with no law regulating its development.