Number of insurance firms in Arab world reaches 367
Market sources claim that 367 insurance firms presently operate in the Arab World. Of these, 23 were awarded a “good” rating from the Standards & Poor’s Association.
Approximately ten percent of these firms have an estimated capital value exceeding $100 million, according to London based Al-Hayat daily.
Car insurance installments continue to constitute the lion’s share of the market, averaging 32 percent of all installments. This rate exceeds, at times, 40 percent in some non-Gulf Arab states.
Local specialists, however, maintained that the Arab insurance market suffers from an excess of small firms that fail to compete successfully in the international market.
These experts suggest that the 367 firms be consolidated into roughly 40 large companies so that they would be able to effectively compete with foreign firms. – (Mena Report)
© 2001 Mena Report (www.menareport.com)