Middle East - MENA: P&C insurance growth to be 2nd highest in the world for 2016-25
Source: Middle East Insurance Review | Jun 2016
MENA is forecast to show the world’s second highest growth rate of 5.5% for P&C insurance for the 10 years from 2016-2025, according to global reinsurance giant Munich Re.
This projected growth is slower than the 9.1% forecast for emerging Asia’s P&C markets but faster than the 1.5%-4.7% for those of the other six regions of the world, namely, sub-Saharan Africa, Eastern Europe, Latin America, Mature Asia Pacific, Western Europe and Northern America, indicated Munich Re in its “Insurance Market Outlook” report released recently.
Countries in MENA would account for three of the top 10 fastest growing P&C markets over the next decade. They are Saudi Arabia, ranked 4th globally with a projected CAGR of 7.9%; Iran (fifth; 6.1%) and Turkey (sixth; 5.5%). Among the top 10, China is in first place with an estimated CAGR of 9.3%.
Over the shorter horizon, the growth rate for the P&C market in MENA is expected to be above 5% in 2016 (~4.5% in real terms) and to exceed 6.5% in 2017 (real: 5.5%).
Life insurance
The MENA life insurance market is expected to show a CAGR of 6.5% over the next 10 years, the third fastest rate in the world. Emerging Asia and Latin America are expected to top MENA at 10.2% and 7.2%, respectively.
The UAE’s life segment, with a CAGR of 10%, would be the only market in MENA to be among the world’s top 10 fastest growing markets over the next decade. China is forecast to be in first position with a CAGR of 11.1%, with Indonesia in second place with 10.1%.
MENA’s share of the overall global insurance market is forecast to rise to 1.6% in 2025 from 1.3% in 2015.