Consumer durables is a cataloguing of consumer goods that are not essential to be bought very often as they are fashioned in a way so as to last for an extended period of time. Profits in the consumer durables sector were most profoundly…
BMI View: Kuwait is one of the smaller insurance markets we monitor in the Gulf region, with the
expansion life segment in particular having been constrained by the strength of the country's social welfare
system and hence a lack of demand for private insurance coverage. As such, underwriting activity is
dominated by compulsory lines such as motor insurance, though we also note the steady expansion of the
health insurance segment. We forecast premiums to grow at a steady rate over the next fear years, against a
backdrop of relatively muted economic growth; however, rising inflation threatens to erode the spending
power of households and hence demand for discretionary insurance products.
Key Updates And Forecasts
? In July 2016, MPs voted to support a proposal to introduce compulsory health insurance coverage for
expats holding visitor visas. The measure aims to reduce the costs to the state of providing health services
to uninsured expats visiting the country. Companies sponsoring visitor visas for expats will need to
provide proof of private health insurance coverage.
? The decision is expected to provide a fillip to Kuwait's health insurance sector; however, we have revised
our forecast for the wider non-life sector downwards this quarter, partly as a result of rising inflation and
falling household spending. Non-life premiums will expand by 6.2% in local currency terms in 2016 to
KWD322bn (USD1bn); premiums are forecast to reach KWD400bn by 2020 (USD1.2bn).
? Life premiums will grow at a slower pace though the forecast period, increasing by 5.0% in 2016 to
KWD184mn in local currency terms, and by 3% to USD600mn in USD terms. Premiums will reach
KWD212mn (USD663mn) in 2020.