Fierce competition, rising medical cost drain profits of Saudi, UAE insurers | ZAWYA MENA Edition:
Insurance companies in the UAE and Saudi Arabia will continue to face challenges amid high healthcare costs and a crowded market, according to Fitch Ratings.
The credit rating agency stated in its latest report issued on Monday that medical inflation, coupled with stiff competition, will further squeeze insurers’ profits in the two markets this year.
Rising medical claims are outpacing premiums increases in Saudi Arabia, while health insurance gross written premiums in the UAE are on a decline, it said.
The UAE and Saudi Arabia are the two largest insurance markets in the Middle East, with health insurance business dominating in both.
Since the compulsory cover was mandated in the UAE in 2005 and in Saudi Arabia in 2006, the health segment has been the fastest-growing insurance product in the region.
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