IslamicFinance.de

The Gulf insurance industry is growing as government spending increases but the sector is suffering from overcapacity in certain markets, which threatens to drive the smaller insurance companies into financial turmoil. Generally, the low level of penetration levels in the Gulf region has granted ample room for the insurance sector to flourish, according to an insurance report by Dubai-based Alpen Capital. The rising wealth of a young population, an increase in expatriate numbers and a growing awareness of insurance products are all helping to boost the industry. Regulators can play a role by developing guidelines to further ensure both the financial strength of insurance firms and the protection of customers.