IslamicFinance.de

GCC countries have experienced massive regulatory change with respect to the insurance sector over the past 12 months, a move that could result in shakeout in the sector, ratings agency Standard & Poor’s said. While the new set of regulations are expected to have a positive long-term impact on the sector — in terms of better capital management, liquidity, internal controls and corporate governance — regional insurance firms, particularly Islamic insurers are facing rising costs. Despite year-on-year premium growth of over 10 per cent in most GCC markets, the GCC insurance sector is overcrowded. Competition is particularly high in the takaful segment.