Qatari financial authorities publish the first barometer of insurance in the MENA region

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Apr 2013

Qatari financial authorities have unveiled the first insurance barometer in the MENA region. This study is based on interviews with 35 senior insurance officers operating in the countries involved.

Nearly 68% of them consider that premium volumes would evolve faster than GDPs’ average value. In 2011, the market of the MENA region (including Iran and Turkey) is estimated at 42 billion USD compared to 26 billion USD in 2007. Non-life insurance is posting a 7.5% average growth per year whereas life’s’ annual growth rate is of 10.1%. As indicated by the respondents, the sector is highly correlated with macroeconomic indicators and penetration rates are increasing. As for the drawbacks, participants denounce the fierce competition, the abundance of insurance and reinsurance capital as well as the inadequate legislation. Approximately 36% of interviewees are expecting mergers and acquisitions moves in the sector, while 38% of them believe that takaful insurance is going to grow more rapidly than traditional insurance.