AM Best


A.M. BestTV: Middle Eastern Insurers Face Market, Regulatory and Economic Forces, Says A.M. Best Senior Director


CONTACTS:

Lee McDonald
Group Vice President, Publication and News Services
+1 908 439 2200, ext. 5561
lee.mcdonald@ambest.com


FOR IMMEDIATE RELEASE

OLDWICK - MARCH 06, 2017 12:51 PM (EST)
In this A.M.BestTV episode, A.M. Best Senior Director of Analytics Mahesh Mistry reviews a new special report that examines the regulatory and economic environments for insurers and reinsurers in the Middle East region. The report also says insurance growth in the Middle East has attracted competition. Click on http://www.ambest.com/v.asp?v=menatrends317 to view the entire program.

“Market conditions in the Middle East are very challenging. A lot of these companies want to do cross-border business, and A.M. Best is looking at the markets that have become increasingly competitive,” said Mistry.

“On the other side, there are regional and international players that want to come into the market. This mainly stems from the high growth rates that they are achieving in the Middle East. These have somewhat moderated in recent years, but they are still more attractive than mature markets at present.”

Mistry also believes low oil prices and the high level of competition are contributing to the backdrop of regional instability.

Mistry sees regulation as being very important to these markets and although the regulatory environment has been static, there is now considerable development, particularly within the Gulf Cooperation Council countries. He expects that competition will keep generating pressure on underwriting.

“These conditions are likely to continue during the course of 2017,” Mistry said. “With improvements in regulation, there should be better results coming through for a number of the market players. However, the competition and the pressure are still going to be inherent in the market. Those that adopt prudent and good practices and can manage their risks effectively are likely to see positive pressure. Those that cannot compete will find the market difficult and may see some downward movements.”

To view the Best’s Special Report, titled, “Middle Eastern Insurers Maintain Strong Capital Levels to Offset Volatility,” go to http://www3.ambest.com/bestweek/purchase.asp?record_code=258285 .

Recent episodes of A.M.BestTV include:


  • No Shortcuts to Digital Transformation, Say McKinsey & Company Analysts: A panel of leading executives from McKinsey & Company discusses the promises and pitfalls of insurance digital transformation: http://www.ambest.com/v.asp?v=mckinsey317 .

  • Cyber Models Aim to Measure Aggregate Exposures, Says A.M. Best Chief Rating Officer: A.M. Best Senior Managing Director and Chief Rating Officer Stefan Holzberger reviews how cyber insurance fits into the rating process and how it is becoming an integral part of various organizations’ risk management: http://www.ambest.com/v.asp?v=cyber317 .

  • Demand Could Propel Title Insurance Growth Despite Rising Rates, Says A.M. Best Senior Research Analyst: A.M. Best Senior Industry Research Analyst David Blades reviews a new special report that examines the economic factors that have led to a rebound for U.S. title insurers: http://www.ambest.com/v.asp?v=title217 .

  • Aviva Asia Executive Chairman: Online Platforms a Bigger Worry Than Insurance Technology: Chris Wei, executive chairman, Aviva Asia, said at the Asia CEO Insurance Summit in Singapore that insurance technology startups are capturing attention but are lacking customers. However, he said the large online platforms in Asia and elsewhere are more likely to disrupt the established insurance sector: http://www.ambest.com/v.asp?v=wei217 .

A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html . View A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source.