Tuesday 19 March 2024
 
»
 
»
Story

Competition top concern for GCC insurers: Moody’s

DUBAI, March 14, 2019

Intense competition, followed by capital requirements and profitability pressures, is the main concern for insurers in the GCC countries, according to Moody's 2019 annual survey of the chief financial officers (CFOs).

Intense competition, followed by capital requirements and profitability pressures, is the main concern for insurers in the GCC countries, according to Moody's 2019 annual survey of the chief financial officers (CFOs) of twelve leading GCC insurers.

"Competition, driven by overcapacity in the insurance GCC market, has now come top of the industry's list of concerns for two consecutive years," said Mohammed Ali Londe, assistant vice president and analyst at Moody's.

Key points:

•    In Moody's 2019 survey, over 40 per cent of respondents cited intense competition as the sector's main challenge

•    New regulatory capital requirements and profitability pressures are the next greatest challenges

•    The share of respondents expecting industry consolidation as a result of stricter capital requirements rose to 33 per cent from 25 per cent in 2018

•    Low oil prices have receded sharply relative to 2018, in a sign that acceptance of current more subdued oil market conditions is growing

•    The majority of respondents expect demand for personal lines P&C insurance to remain broadly unchanged, but for prices to deteriorate

•    Significant exposure to investment-grade bonds and for technology to continue to be a strategic priority for insurers as they attempt to improve operational efficiency and profitability. – TradeArabia News Service




Tags:

More Finance & Capital Market Stories

calendarCalendar of Events

Ads