S&P Global

GCC #Islamic #insurance companies to #face #headwinds: S&P Global

Islamic insurers in the GCC will probably continue to face headwinds, despite a better overall. The forcasted slowdown follows years of annual growth in gross premiums of up to 20 %, which was mainly driven by the introduction of new mandatory covers, as well as strong increases in premium rates in Saudi Arabia, as new covers and actuarial pricing guidelines were adopted, S&P Global Ratings noted yesterday.
“Now that more policies are adequately priced, overall premium growth has slowed,” said S&P Global Ratings’ credit analyst Emir Mujkic. “The slowdown in premium growth has also been influenced by lower economic activity across all GCC states, as governments are trying to reduce or delay their spending due to lower revenues from hydrocarbon sales,” Mujkic added.

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