Insurance
From The Report: Kuwait 2017
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The Kuwait insurance industry entered 2017 after a challenging period, which saw premium growth maintained but profitability declining year-on-year. High levels of competition and low oil prices make a reversal of this trend in the short term a daunting prospect. However, a number of developments in the pipeline – including a new legislative framework and the introduction of mandatory health coverage for expatriates – have the potential to provide a timely boost to Kuwait’s insurers. There is clearly scope for the expansion of insurance activity in the Kuwaiti market. The domestic industry plays a relatively small role in the economy, with banks and investment companies accounting for 94% of the financial system as of December 2015, according to the Central Bank of Kuwait. Insurance density in Kuwait, which stands at around 0.9% of GDP, is low even by regional standards.

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Overview

Scope for expansion: Consolidation and overturning the decline in net profits are top priorities for the sector
OBG
plus

The Kuwait insurance industry entered 2017 after a challenging period which saw premium growth maintained but profitability declining year-on-year. High levels of competition and low oil prices make a reversal of this trend in the short term a daunting prospect. However, a number of developments in the pipeline – including a new legislative framework and the introduction of mandatory health coverage for expatriates – have the potential to provide a timely boost to Kuwait’s insurers. Early…

Analysis

Health overhaul: Introduction of compulsory medical coverage for expatriates will be a boon to the market
OBG
plus

A common theme throughout the GCC’s insurance markets is the gradual shift towards compulsory private health care. The issue has been on the agenda of regulators for years, and the sustained period of low oil prices which began in late 2014 has strengthened the desire of governments to shift some of the burden of health care provision to the private sector. By the close of 2016 these efforts were at various stages of completion, with both Oman and Bahrain in the final stages of approving…