Economic disruption caused by the wave of unrest across the Middle East is now hurting regional insurers, industry officials and analysts say, as falling stock markets cut into their investments, and rising risks — including the sovereign risk that underlies their credit ratings — undermine their financial standing.
“The impact is immediately seen in rising premium levels,” said Fareed Lutfi, the secretary general of the Coordination Commission for Gulf Insurance and Reinsurance Companies, a regulatory body for regional insurers based in the United Arab Emirates.
“And on the investment side, the political unrest has affected the quality of their portfolios,” he continued. “Insurers will be much more conservative until stability returns.”
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