GCC takaful insurance market set to grow

According to Standard and Poor's (S&P), takaful insurance companies operating in the Gulf Cooperation Council (GCC) countries are expected to achieve a 5-10% turnover growth in 2023.

Improved economic climate, increased compulsory coverage, ongoing infrastructure spending and high insurance demand are some of the factors that would contribute to the growth of the sector.

S&P expects GCC insurers' profits to remain modest over the next two years, mainly due to the fierce competition among insurance companies and the rising claims frequency.