The financial advising firm Nexus Group recently issued a promising forecast for the Gulf region’s insurance industry.
A company representative said mandatory health insurance will drive industry growth in the year ahead, followed by pensions and individual savings plans. According to Nexus, pensions have become more popular after the last recession, when companies were suddenly caught unable to fulfill severance agreements. Individual savings plans will likely proliferate as a response to dragging oil prices.
“As regulations are now firmly in place, health care will become more accessible to residents, enabling them to seek treatment when they need it most,” Nexus Group CEO Tarun Khanna said. “It is only natural that once insurance is mandated, uptake will increase as businesses are required to provide insurance for employees and their dependents.”
The insurance industry in the United Arab Emirates (UAE) is worth an estimated $9.1 billion in holdings, showing growth of 11 percent from 2010 to 2014.
“It is an exciting time for both the insurance industry and policy holders in the UAE,” Khanna said. “Backed by government support, we expect not only to see a growth in business-building opportunities, but also in the overall quality of coverage for our clients.”
