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Insurance sector to grow up to 17% over next 5 years


U.A.E.-based investment bank Arqaam Capital Ltd.'s managing director Jaap Meijer has said that the Saudi Arabian insurance sector is likely to grow by 14% to17% over the coming five years, reports Middle East Insurance Review.

Mr. Meijer said the growth will be driven mainly by the enforcement of regulations. "We expect higher interest rates to boost earnings by 5-8% as well," said Mr. Meijer. "A key weakness of the sector is its inadequate pricing, which means that more than half of insurers incur underwriting losses.”

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