Insurance
From The Report: Kuwait 2013
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While the insurance market has grown steadily over the past decade, market penetration in Kuwait remains limited at 0.58%, the lowest in the GCC region. Encouraged by high growth rates and favourable entry requirements, the sector has grown from six companies in 1999 to 34 today. Despite steadily increasing competition through the first half of the 2000s, the industry as a whole posted solid growth in terms of gross written premiums during this period. Despite challenges, most agree that there is substantial potential for growth in Kuwait’s insurance industry.

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Overview

Ready for change: New laws and market activity are set to revitalise the sector
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The insurance industry has grown substantially over the past decade. The expansion of Kuwait’s insurance industry over the course of the 12 years leading up to 2011 – the most recent year for which data was available at time of publication – reflects the country’s overall economic performance during the same period and, indeed, global macroeconomic trends, particularly in the wake of the 2007-08 international financial crisis. SCALING UP: The number of insurance companies carrying…

Analysis

A key component: Reinsurance may expand considerably in the coming years
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The two firms that constitute Kuwait’s reinsurance industry are looking forward to increased activity, driven by strong demand for reinsurance capacity in local and regional markets alike. Indeed, in an effort to diversify their revenue sources, both Kuwait Reinsurance (Kuwait Re) and Al Fajer Re-takaful (Al Fajer Re) have worked to expand their operations in recent years, particularly in Asia and Africa. Meanwhile, the local insurance market is also expected to continue to provide a substantial…