New research by Nexus Insurance Brokers, the largest Independent Financial Advisor (IFA) in the Middle East, reveals the potential of insurance market growth projections in the region to the year 2010.
Data compiled by Nexus predicts total market value in the GCC region will grow by a massive $2 billion by 2010. Currently the industry is worth an estimated $5.1 billion with growth expected to reach $7.1 billion in four years’ time.
Soaring demand for insurance products in the Middle East is fuelling the boom as highly trained and internationally accredited financial advisors like Nexus offer first class services to clients across the region.
“We are expecting unprecedented growth across all sectors of the insurance market in the Middle East over the next few years and Nexus will be at the forefront of advising clients on their best options,” said Mahmoud Nodjoumi, owner and CEO, Nexus Insurance Brokers.
“Our locally based expert knowledge means we are ideally placed to help clients maximise their financial potential so they can feel safe in the knowledge Nexus is helping them make the best decisions. Insurance policies form a central plank of that strategic thinking and we recognise that fact more than anyone else,” he added.
Projected growth in life insurance is enormous with Gulf market value expected to surge from an estimated $686 million this year to $1.15 billion by 2010.
This trend is backed up by authoritative sigma research from Swiss Re which stated life business grew faster than overall economic activity during 2005. Real premium growth in emerging markets grew in 2005 by 7.5 percent compared to just 3.4 percent in industrialised countries. The report concluded: “Emerging markets grew rapidly again with substantial outliers both on the upside and the downside.”*
The general insurance market forecasts for the Gulf region also reveal estimated growth from $4.4 billion in 2006 to $5.9 billion by 2010.
In terms of the UAE, the new research shows total insurance market value growing from an estimated $2 billion in 2006 to $2.9 billion by 2010. Large scale expansion in life insurance value is also revealed – from an estimated $386 million in 2006 to $676 million by 2010. The UAE’s general insurance market value is expected to rise from $1.65 billion this year to an estimated $2.2 billion by 2010. The new research was compiled from a region wide survey of existing and potential customers conducted since January 2006.
Regionally, the figures reveal similar trends of growth across the board. Total insurance market value in Bahrain is estimated to rise from $235 million in 2006 to $346 million by 2010. In Qatar the same sector is estimated to surge from $395 million to $584 million during the same period.
According to the data, total insurance market value in Saudi Arabia is expected to grow from $1.55 billion this year to $2.1 billion by 2010. In Oman, the sector is estimated to add value to the tune of $98 million by 2010 – from $313 million in 2006 to $411 million and in Kuwait by an estimated $194 million from $539 million in 2006 to $733 million by 2010.
“What is obvious to us at Nexus is that businesses and residents in the region are becoming more aware of the benefits insurance products can offer and we are delighted to be an integral part of that process,” added Nodjoumi.
Launched in September 2006, Nexus Insurance Brokers is the largest brokerage IFA in the region employing more than 250 professional and independent advisors. It has offices in Dubai, Abu Dhabi and Bahrain.
