Dubai – Mubasher: The United Arab Emirates’ (UAE) insurance market became one of the world’s top ten in terms of opportunity for significant premium growth, while Saudi Arabia was ranked 11th, according to a report by Ernst and Young (EY) and Oxford Economics.
Out of the 22 countries assessed, the two countries were also ranked sixth and seventh in terms of least amount of risk.
The insurance market of UAE and Saudi Arabia remained resilient, despite on-going economic uncertainty, the report stated.
“The UAE and KSA insurance markets have performed well despite difficult economic conditions. Both of these markets’ insurance sectors are going through structural evolution with the introduction of stronger regulations, aided by a welcome shift towards the right level of technical pricing,” Sanjay Jain, EY MENA Insurance Leader, said.
“Even though the drop in the price of oil has introduced new vulnerabilities across the wider region, in the long-term, rapid urbanization, growth in the middle class, and the use of mobile technologies, offer the potential for faster growth for insurers. Enforcement of regulations to eradicate fraud, corruption and other abuses will also be critical for the increased growth of this sector, as will be enhanced efforts towards educating consumers,” Jain added.
