GCC’s rebounding economy to double insurance take-up by 2017
The GCC’s rebounding economy is set to double insurance penetration by 2017, as consumers increasingly use financial advisors to plan for major life events.
With the International Monetary Fund projecting 4.1% real GDP growth for the GCC in 2014, more businesses and residents are moving to the region. By 2030, the GCC’s population is slated to reach 62.1 million, a 40 percent increase from 2010, according to the United Nations.
Thanks to longer life expectancies, compulsory health insurance programs, and growing business and financial hubs, the GCC’s robust insurance industry is projected to grow at a CAGR of 18.1% from 2012-2017, reaching $37.5 billion by 2017, according to Alpen Capital.
As a result, Alpen Capital projects the GCC’s insurance penetration to nearly double in the coming years, growing from 1.1% in 2012 to 2.0% in 2017.
“In the wake of the financial crisis, many people in the GCC lived paycheck-to-paycheck, dipping into their savings accounts and putting financial planning and insurance to the side,” said Peter Ellen, Operations Director, Nexus Insurance Brokers, one of the region’s largest and most respected independent financial firms in the region.
Now with the GCC’s bright financial future, residents in five of the six GCC countries posted high consumer confidence levels of at least 87%, according to the MasterCard Intelligence Survey in August 2013.
“As the GCC’s economy rebounds, consumers are now more educated about managing their money, recognizing that the days of splurging on big-ticket items like exotic vacations and new cars are over. Consumers are increasingly turning to objective and skilful financial advisors to help plan for major life events like buying a house, financing their children’s education, or preparing for retirement,” added Ellen.
Across its GCC offices, Nexus Insurance Brokers offers a wide range of financial savings products and personal protection solutions, including individual life and savings plans, employee benefits, and general insurance that can cover property, vehicles, and jewellery.
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