AM Best: negative outlook for the GCC insurance market

AM Best maintains its negative outlook for the insurance markets of the Gulf Cooperation Council (GCC).

The rating agency justifies its decision by the many factors facing insurers in the region.

These factors include uncertainty related to Covid-19, the risk of oil price volatility, fierce competition among insurers and fluctuations in financial markets.

AM Best recognises that the market holds advantages notably the growth of mergers and acquisitions and the strong capitalization of insurers. The agency says these are opportunities for market consolidation.