BMI View: We expect to see healthy growth in Kuwait's insurance market throughout the forecast period to2019, though the market will remain small in both regional and global terms, with life insurance inparticular reflecting low rates of penetration and density. Kuwait's insurance market is highly fragmented,and a lack of sufficient regulatory oversight continues to undermine the operating environment and deterpotential investment. There is, however, substantial growth potential, including via the expanding takafullines. The country is undertaking reform of the financial sector, including implementing the Basel IIIbanking sector regulation and supervision framework, which will help to improve the operatingenvironment.
Key Updates And Forecasts
The government is reportedly considering further restricting expatriate access to public healthcare underongoing austerity measures, a measure which has come under criticism from private health practitionersin the country.
Non-life insurance premiums are expected to grow by around 5% annually throughout the forecast periodto reach USD1.1bn in 2019, up from USD0.9bn in 2015.
The smaller life sector is expected to show slower growth, meaning premiums will remain low at aroundUSD320mn throughout the forecast period.
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