Outlook
As per GlobalData's Property Insurance Industry Outlook in Middle East and Africa in 2022 report, the property insurance industry in the Middle East and African region recovered by an estimated 4.4% growth in 2021 after a contraction of 0.3% in 2020, due to the economic impact of the COVID-19 pandemic.
The region’s traditional industries which include oil and gas, and mining are the key property insurance drivers. In the African markets, property insurance demand related to infrastructure and construction developments was a prominent driver.
Given the region’s exposure to extreme weather events that include floods and droughts as well as economic reliance on agriculture, the developments related to parametric insurance with a special focus on weather-index insurance are expected to be a key theme for the property insurance industry over the next five years.
The regional insurance industry also witnessed insurtech developments to provide risk-based insurance propositions. In September 2021, Willis Re launched a new flood model with KatRisk in Saudi Araba, Morocco, and the UAE. It enables (re)insurers to quantify flood risks, and price the policies accordingly. The model helps insurers in maintaining profitability by modeling the flood risk, especially associated with pluvial flooding, which is unpredictable in nature.
Civil disturbances and terrorism remain key concerns in the region
Insurance that covers strikes, riots, civil commotion (SRCC) clauses, war, and terrorism is also a focus area for the regional insurers.
In July 2021, massive unrest erupted in South Africa, which led to more than 200 deaths, and over 2,500 people were arrested on charges such as theft and vandalism. This led to insurers receiving business interruption claims pertaining to supply-chain disruption, loss of production, and store closure claims caused by the riots.
According to GlobalData's Property Insurance Industry Outlook in Middle East and Africa in 2022 report, the South African insurer Sasria SOC Ltd, which provides insurance to businesses and government entities against SRCC and terrorism, is expected to face claims up to ZAR20 billion ($1.35 billion) for property damages during the July riots.
Ease in foreign capital to improve the region’s competitive landscape
The easing of FDI regulations and higher capital requirements in many Middle Eastern markets, such as the UAE, Kuwait, and Qatar, enabled foreign insurers to enter and expand their business.
Axa SA, American International Group, Inc., and Allianz SE were the international insurers among the top 10 insurers in 2020. These together accounted for 11.3% of the property insurance business in the region.
Among the top 10 insurers, four insurers are based out of Saudi Arabia and accounted for a combined 23.5% share. The insurers include the Company of Cooperative Insurance, Al-Rajhi Insurance Company Limited, Saudi Re for Cooperative Reinsurance Company, and The Mediterranean & Gulf Cooperative Insurance & Reinsurance Company.
Access the report: Property Insurance Industry Outlook in Middle East and Africa in 2022.
United States of America
United States of America
United States of America
United States of America
United States of America
United States of America
Germany
France
Don’t wait - discover a universe of connected data & insights with your next search. Browse over 28M data points across 22 industries.
Access more premium companies when you subscribe to Explorer