AM Best: Stable outlook for the GCC insurance market

AM Best has maintained a stable outlook for the insurance market in the Gulf Cooperation Council (GCC) countries of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

The rating agency based its decision on a number of positive aspects in the market, including:

• the resilience of the region's insurers to difficult macroeconomic conditions
• the sector's growth opportunities supported by the strengthening of the economy, the emergence of new insurable risks and the diversification of products following the implementation of compulsory coverage
• the surge in M&A transactions in the region

AM Best also mentioned some of the negative factors facing GCC insurers, including intense competition, supply chain disruptions, high inflation, tighter reinsurance market conditions, and mounting natural catastrophe claims.