GCC insurers face crossroads as profitability declines
According to a GCC survey, insurance profitability has deteriorated significantly in the past four years across top 30 conventional insurers. While 28% in 2007, it sropped down to 9% in 2011. A solution to prevent further decline is to revamp operating models with profitability pillars. There is a huge difference between e.g. motor premiums and medical insurance, which causes controversial reactions by insurers. While motor premiums in the UAe show a decrease of 23% over the last three years, healthcare provider costs have grown up to 50% in the same period.
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