Industry challenged by VAT, political tensions, price competition, report says
The insurance market of the states from the Gulf Cooperation Council (GCC) now has to face a negative outlook as it has to cope with a number of challenges such as the low oil prices and the introduction of value-added tax (VAT), CPI Financial reported referring to data provided by the Best's Market Segment Outlook.
Also, the insurance sector in the area involving Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE is affected by the political tensions, trade embargos and price competition in the region.
Yet, according to the report, GCC insurers are enhancing their focus on risk management and their balance sheets remain well-capitalised and capable of enduring catastrophe stress scenarios, CPI Financial noted.
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