Saudi Arabia and the UAE tied this year in the number five position in Aon Benfield’s Country Opportunity Index that ranks 50 markets globally based on a combination of profitability, growth potential, and political stability. They, however, offer the most market opportunity in the MENA region.
Aon Benfield produced the Index in its annual Insurance Risk Study, which analyses 50 property & casualty markets worldwide.
Saudi Arabia and the UAE share fifth placing with Chile, Nigeria and Australia. Indonesia, Malaysia and Singapore are ranked joint first.
Last year, Saudi Arabia headed the Country Opportunity Index. The UAE, which was in the second quartile last year, moved to fifth position this year.
Other MENA countries which are also on the list were Morocco (13th) and Turkey (22nd). Both also appeared in last year’s rankings. Turkey has moved up from its placing last year in the fourth quartile, while Morocco remains in the second quartile.
“The US, Japan, and most of Western Europe are in Quartiles Three and Four. This Index suggests that to achieve strong insurance growth, it is best to look beyond the developed economies,” said Aon Benfield.
The 2015 Study identifies seven key business opportunities for insurers over the next five to 10 years: US mortgage credit, the sharing economy, reputation and brand, microinsurance, corporate liability covers, terrorism cover, and cyber risk.
It highlights that three key strands of the market – demand driven by new emerging risks, supply from new capital, and empowering data and analytics – have all seen favourable developments, contributing to a positive outlook for the insurance industry.