While the global captive insurance industry has experienced steady growth over the past decade, the use of captive (re)insurers in the Gulf Cooperation Council (GCC) countries has been limited to date. However, as hardening international commercial insurance rates and regulatory developments in some GCC jurisdictions have made it easier to establish a captive, interest in captives has been growing in the region, according to a new AM Best report.
A new Best’s Market Segment Report, “Gulf Cooperation Council: A Hardening Market and Regulatory Developments Drive Interest in Captive Insurers” notes that it is not only the traditional users of captives—the energy and heavy industry sectors, and state oil enterprises—expressing an interest.
A wider gamut of companies is now investigating self-insurance solutions in response to hardening rates in the international commercial insurance and reinsurance markets. Additionally, companies in the region are becoming increasingly sophisticated in their risk management.
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