Global insurance titan AIG has suggested that the insurance market in the Gulf region is ripe for a major expansion in the coming years, Reuters has reported.
According to analysis from leading insurance and financial services provider American International Group, the Gulf insurance market will near to double over the next three years to reach a collective value of $4 billion.
The US insurance firm is confident of the increase in business because the region’s insurance market is still immature but on the cusp of widespread acceptance due to the recent emergence of Islamic insurance products. Meanwhile, state acceptance, in the form of enforcing compulsory health and motor cover, is also driving the expansion of the market.
Current local market forerunners, Saudi Arabia and the United Arab Emirates, will lead the rapid expansion, Sumanth Badiga, chief financial officer for AIG’s Middle East, Mediterranean and South Asia region, told Reuters.