According to AM Best, the insurance, reinsurance and takaful insurance sectors in North Africa and Middle East continue to exhibit growth perspectives. However, global slowdown, resulting from the economic and political crisis, has reduced the expectations of some insures.
The progression of written premiums, previously set at 10% per year, will probably be below 5% this year. The rating agency noted that conventional insurance and takaful businesses remain immature. The outlook for the latter are good in major regional markets (Saudi Arabia, Emirates, Egypt). In a recent survey, S&P maintains that the investments achieved by takaful insurers are overexposed to financial risks.
Moreover, legislations are hardly strict and control inadequate, especially in the Gulf states. Another concern: life insurance is developing very slowly in many countries where it accounts for just 20% of collected premiums in addition to the poor insurance penetration rate. It is worth noting that in several countries, demand has slightly increased following the institution of compulsory insurance, especially for the health and motor business.