DUBAI: Significant opportunities for growth are present in emerging markets such as Saudi Arabia and the UAE, according to the Ernst and Young’s Middle East and North Africa report: ‘Waves of change: The shifting insurance landscape in rapid-growth markets’.
Gordon Bennie, EY MENA Financial Services Leader, said, “Insurance market growth has accelerated in countries where penetration rates were once low, such as Saudi Arabia, where consistent and rapid premium growth has been observed. In their search for growth and revenue, insurers need to optimise capital and asset liability strategies and remain cost competitive, without losing sight of their customers’ needs. Adapting to evolving market and regulatory change will be a challenge that requires employing new technologies and building flexibility into all aspects of the industry.”
The report features a risk-opportunity matrix ranking 21 rapid-growth markets (RGMs) in terms of their future prospects for insurers. The rankings are based on projected economic and premium growth until 2020, financial stability, regulatory change, macroeconomic volatility, liquidity risk and other factors.
“Technology continues to shape the industry, with legacy systems restraining some carriers’ ability to embrace big data analytics or meet the expectations of digitally savvy customers. The need for strong digital operations and rich customer experiences will be an ongoing strategic theme across the industry for some time to come. Opportunities for global expansion into new markets represent a powerful force accelerating the growth in insurance premiums today, especially as economic performance struggles in much of the developed world,” added Bennie.
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