S&P upbeat on region

Middle East

The Gulf region’s insurance markets are experiencing a period of growth, which although not on the scale of global markets is profitable enough to attract new players, according to a new report on the sector by Standard & Poor’s. The market has seen substantial change in recent years which has been driven by growing wealth in the region, stronger insurance regulation and the development of Takaful insurance. S&P says it has issued 12 regional insurers with financial strength ratings compared with only four in 2004 and none in 2003 and attributes the growing on areas of interest in ratings to more robust regulation of the sector. However, it warns that insurance firms in the region need to improve risk management and corporate governance practices to keep up with the more demanding regulatory environment.