2ƒ The ‚iddle East‰ —entral sia‰ Turey“ growth improves in lie‰ nonŽlie Life insurance ”ie premiums growth accelerated to ”ie insurance premium growth in the ‚iddle East‰ —entral sia and Turey ƒ…6ˆ in the ‚iddle East‰ —entral sia and accelerated to ƒ…6ˆ in 201 rom 3…2ˆ in 201’… n Turey premiums increased by Turey in 201… 6…ˆ… n the ‹ E‰ the region’s biggest maret‰ premiums grew by an estimated ¡…3ˆ‰ driven by demand rom the expatriate population and a growing middle class… n „audi rabia‰ premiums continued to grow or a second year ater ive years o decline‰ due to a shit in the investment patterns rom insurance saving products to the e«uity maret… ¢man registered robust growth in 201‰ mostly rom group lie business… n ¦ahrain‰ premiums declined slightly in 201 due to ¥amily Taaul business… n –a§ahstan‰ lie premiums rebounded by ¡…¡ˆ in 201‰ due to a strong growth in annuities‰ and despite a slowing o the oilŽbased economy… rowth was a 2 solid 12ˆ in §erbaiŠan ‰ slower than in previous years‰ resisting the decline in the overall economy… ”ie insurance penetration rates and premium volumes in the two —entral sian economies‰ however‰ are low… The outloo is positive given low The outloo or lie insurance is solid‰ but in the short term low oil prices are liely to penetration‰ rising ris awareness and weigh on growth… ”ow penetration rates and increasing awareness coupled with avourable demographics… social actors lie a move to smaller amilies and rapid growth o private sector employment‰ will drive demand in the longer term… high share o young consumers should boost demand or savings‰ protection and retirement products… The ‹ E insurance authority’s proposal to establish a maŠor nationwide lie insurance company as part o developing the lie insurance sector – while also enhancing the perormance‰ growth and competitiveness o national insurers – will urther boost sector growth… ncreasing acceptance o shariaŽcompliant products will also lend support… Non-life insurance n 201‰ nonŽlie premiums expanded by NonŽlie insurance premiums in the ‚iddle East‰ —entral sia and Turey grew by ¡…ƒˆ‰ driven by a strong acceleration in ¡…ƒˆ in 201 †201’“ £ƒ…2ˆ‡… n Turey‰ premiums were up 12ˆ ater stagnating in Turey… 201’‰ boosted by motor‰ aviation‰ credit ™ surety‰ liability and agriculture… n „audi rabia‰ strong nonŽlie premium growth continued at 20ˆ †201’“ 1ˆ‡… ˜ising rates ‘iddle ast• Œentral ’sia• and Tur„e€ in motor supported growth‰ and liewise in medical insurance… NonŽlie premium ‡re­iu­s• 2015 growth in ran is estimated to have slowed to ’…1ˆ in 201‰ but motor and accident Œorld were growing more strongly… n –a§ahstan‰ premiums grew by 3…2ˆ ater a ¡…6ˆ ‹„­ bn maret share decline in 201’‰ driven by doubleŽdigit growth in most lines o business‰ particularly ”ie 6 0…2ˆ property and ‚T€”… n §erbaiŠan‰ premiums continued to decline‰ down 3ˆ NonŽlie ’3 2…1ˆ †201’“ –6…ˆ‡ as an increase in liability †£1ƒˆ‡ and ‚T€” † £’ˆ‡ were more than oset by contraction in property †–ˆ‡ and motor ownŽdamage †–2ˆ‡‰ relecting 18% Real premium growth how people are cutting bac on voluntary insurance in challenging economic times… 16% The shortŽterm outloo or the nonŽlie sector is cautiously optimistic… ‘owever‰ in the 14% environment o low energy prices‰ public spending and subsidies are being reviewed 12% or cuts and insurance demand will liely slow in the shortŽterm… ‘ealth insurance‰ however‰ is expected to expand robustly as governments enact laws re«uiring 10% compulsory health cover or all nationals and expatriates… The irst two phases o the 8% new ‘ealth nsurance ”aw in ­ubai have been completed and the third and last phase is expected to be inalised by •une 2016… —ompetition is liely to remain 6% intense‰ applying pressure on rates and reducing proitability o insurers… This may 4% trigger a picŽup in merger and ac«uisition activity… The recent incidence o cyber 2% breaches in the ul —ooperation —ouncil region and concerns over potential attacs have made cyber insurance a hot topic and growth area… ­irectors ™ ¢icers †­™¢‡ 0% cover is another current theme ollowing a string o highŽproile incidents… LifeNon-life Growth rate 2015 Pre-crisis average growth 2003–200 Post-crisis average growth 200–2014 27 The igures in this section exclude srael‰ which alls under advanced countries… 28 §erbaiŠan is not among the largest  marets to be shown in the appendix‰ but data can be ound on www…sigmaŽexplorer…com Swiss Re sigma No 3/2016 33