AM Best Revises Outlook On GCC Insurance Markets To Negative: Bests Market Segment Report

AM Best has changed its market sector outlook on the insurance markets of the Gulf Cooperation Council (GCC) to negative from stable. Trick aspects that brought about the modification outlook consists of the economic recession throughout the area stemming from lower oil costs and COVID-19 containment measures; the assumption of lower insurance need following a hold-up in the rollout of mandatory medical insurance in Oman and also Bahrain; the postponement of EXPO 2020 in Dubai; and also the potential hold-up of government infrastructure jobs.

A brand-new Best's Market Segment Report, titled, "Market Segment Outlook: Gulf Participation Council" likewise points out the adverse effect on capital buffers stemming from economic market volatility and also possible decline in property appraisals, along with the assumption of increased delays in cash money collection pertaining to premium receivables from policyholders, as chauffeurs for the outlook revision.

The report notes these adverse factors are partially countered by the introduction of regulatory demands over the past five years in Saudi Arabia, the United Arab Emirates as well as Qatar, which have actually encouraged firms to carry out even more durable administration and risk monitoring frameworks. In addition, AM Ideal sights insurers in the GCC as normally well-capitalised and capable of enduring stress circumstances.

To access a free of charge duplicate of this market segment report, please browse through http://www3.ambest.com/bestweek/purchase.asp?record_code=297794.

AM Best is a global credit rating agency, news publisher and also data analytics supplier being experts in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. To learn more, visit www.ambest.com.