Non-life insurances - MENA

MENA

The Non-life insurance market in the MENA region is expected to witness substantial growth in the coming years.
By 2024, the market size, measured by gross written premium, is projected to reach US$61.31bn.
This indicates a promising potential for the insurance sector in the region.
Furthermore, the average spending per capita in the Non-life insurance market is estimated to be US$107.60 in 2024.
This figure reflects the level of insurance coverage and the importance placed on protecting assets and mitigating risks among individuals in the MENA countries.
Looking ahead, the market is anticipated to maintain a steady growth trajectory.
With an expected annual growth rate of 2.89% (CAGR 2024-2029), the gross written premium is forecasted to reach US$70.70bn by 2029.
This signifies the increasing demand for insurance products and services in the MENA region.
In a global comparison, the United States is expected to generate the highest gross written premium in the Non-life insurance market, reaching an impressive US$2,500.0bn in 2024.
This highlights the dominance of the US in the insurance industry and its significance as a major player on the global stage.
Overall, the Non-life insurance market in the MENA region is poised for growth, driven by factors such as increasing awareness about insurance, economic development, and the need for risk management.
The projected market size and the average spending per capita reflect the potential for the insurance sector to contribute significantly to the region's economy in the coming years.
In the MENA region, the non-life insurance market in Saudi Arabia is witnessing a surge in demand due to the government's focus on infrastructure development.

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Region

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Analyst Opinion

The Non-life insurances market in MENA region is experiencing significant growth and development.

Customer preferences: Customers in the MENA region are increasingly valuing insurance products that provide comprehensive coverage for various risks such as property damage, motor vehicle accidents, and medical emergencies. They are also showing a preference for insurance companies that offer convenient digital platforms for policy management and claims processing.

Trends in the market: In the United Arab Emirates, there is a growing trend towards the adoption of innovative insurance products such as cyber insurance, driven by the increasing digitalization of businesses in the country. Saudi Arabia is witnessing a rise in demand for property insurance due to the booming real estate sector. Meanwhile, in Egypt, there is a noticeable shift towards health insurance products as the population becomes more health-conscious.

Local special circumstances: One of the unique aspects of the Non-life insurances market in MENA is the presence of takaful insurance, which complies with Islamic principles. This type of insurance is particularly popular in countries like Saudi Arabia and Qatar, where Islamic finance plays a significant role in the economy. Additionally, regulatory changes in countries like Oman and Bahrain are shaping the competitive landscape of the insurance market in the region.

Underlying macroeconomic factors: The growth of the Non-life insurances market in MENA can be attributed to several macroeconomic factors such as population growth, urbanization, and regulatory reforms aimed at increasing insurance penetration. As disposable incomes rise across the region, more individuals and businesses are looking to protect their assets and mitigate risks through insurance coverage. Furthermore, the increasing awareness of the importance of insurance in safeguarding against unforeseen events is driving the expansion of the market in MENA.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.