Saving You Money For Life

Data compiled by Nexus Insurance Brokers, a major insurance conglomerate in the Middle East, predicts total market value in the region will have increased an estimated $2 billion in valuation by 2010. Currently the industry is worth an estimated $5.1 billion with growth expected to reach $7.1 billion over the next four years. “We are expecting unprecedented growth across all sectors of the insurance market in the Middle East over the next few years,” said Mahmoud Nodjoumi, owner and CEO, Nexus Insurance Brokers.

Projected growth in life insurance is helping to lead the way with Gulf market value expected to jump from an estimated $686 million this year to $1.15 billion by 2010. Swiss Re, one of the large European insurers, has data that backs these figures – showing that real premium growth in emerging markets grew in 2005 by 7.5 per cent compared to just 3.4 per cent in industrialized countries. 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 the United Arab Emirates, the general insurance market value is expected to rise from $1.65 billion this year to an estimated $2.2 billion by 2010. Similar increases are foreseen in Saudi Arabia with the total insurance market expected to grow from $1.55 billion this year to $2.1 billion by 2010. In Kuwait the growth will be to an estimated $194 million from $539 million in 2006 to $733 million by 2010.

It’s difficult to speculate on the sociological nuances of this, other than to note that similar increases in the industry are occurring worldwide – notably in India and China. Russia has announced a long-term plan to open its markets to Western underwriters over the next nine years.

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