GCC insurers are betting big on cyber and risk cover amid geopolitical pressures

By Puja Sharma

GCC insurance market poised for continued growth amid geopolitical challenges

GWP expected to rise at a CAGR of 4.9% between 2025 and 2030

Dubai-based investment banking advisory firm, Alpen Capital, released its GCC Insurance Industry Report 2026, outlining steady growth for the GCC insurance sector, with gross written premiums (GWP) expected to rise at a CAGR of 4.9% between 2025 and 2030, reaching $61.8 billion. During the same period, the non-life insurance segment is anticipated to grow at a CAGR of 5.2% to reach $54.1 billion by 2030, comprising 87.6% of the region’s total GWP. This outlook remains subject to prevailing economic and geopolitical conditions.

In addition to presenting the growth outlook, the report provides a comprehensive overview of the GCC insurance sector, outlining recent trends, growth drivers and challenges. It also profiles select insurance companies in the region.

“The GCC insurance industry is expected to maintain its growth momentum driven by a steady increase in population, the expansion of mandatory insurance lines, and positive macroeconomic fundamentals. Over the next five years, the region’s insurable asset base is expected to rise significantly with the planned completion of large-scale infrastructure projects, benefiting the non-life segment. The region is also witnessing increased demand for risk-related insurance products due to natural calamities and unstable geopolitical conditions. Although the sector is maturing, insurance penetration rates across the region remain below international standards, highlighting significant room for growth. The fragmented nature of the market and elevated operating expenses are keeping profitability under pressure. Additionally, the prevailing geopolitical environment has moderated regional economic prospects, which could affect premium growth in certain segments”, said TM Lakshmanan, Chief Executive Officer, Alpen Capital.

“Improving regulatory oversight, adoption of digital insurance models, and rising awareness are improving consumer confidence and increasing consumption across the GCC’s insurance industry. Moreover, progressive adoption of technology is enhancing underwriting processes, claims management, and distribution channels. Over the past few years, regional M&A activity has been driven by insurers’ efforts to strengthen their market positioning, enhance operational scale and coverage, while expanding geographically. These acquisitions have supported inorganic growth strategies, enabling companies to improve market penetration and diversify their business operations. Going forward, we expect industry focus to be directed towards value-creating opportunities, with larger players targeting small to mid-sized players, as well as tech-enabled operators. This is expected to strengthen competitive capabilities within the market, encouraging innovation of new products and services,” said Amjad Alomari, Senior Director, Alpen Capital.

According to Alpen Capital, the GCC insurance market is projected to grow at an annualised rate of 4.9% from $48.5 billion in 2025 to $61.8 billion in 2030. Sustained increase in population, recovery in economic activity, expansion of mandatory insurance lines and higher regulatory oversight are among the leading factors that will facilitate growth in the sector. The life insurance GWP is projected to grow at a CAGR of 3.5% from $6.4 billion in 2025 to $7.7 billion in 2030. Meanwhile, the non-life insurance segment is projected to grow at a CAGR of 5.2% to reach $54.1 billion in 2030 from $42.1 billion in 2025. This growth is expected to be led by increasing urbanisation rates and a strong pipeline of large-scale infrastructure development projects across the GCC. Insurance density is expected to increase from $775.3 in 2025 to $907.5 by 2030, while insurance penetration is anticipated to change marginally during the same period.

With respect to the individual GCC countries, Saudi Arabia is expected to retain its position as the largest insurance market in the region and witness the highest growth rate, with a CAGR of 5.9% between 2025 and 2030. Kuwait is projected to follow Saudi Arabia with a CAGR of 5.5%, while the UAE insurance market is anticipated to grow at a CAGR of 4.1%.

The GCC economies are expected to remain resilient despite the challenging external environment and geopolitical concerns. The sizable infrastructure investment programs, progressive reforms and strong emphasis towards economic diversification and private sector participation are expected to bode well for the region’s insurance industry. Furthermore, a growing population, largely comprising young and working-class professionals, together with a high proportion of expatriates, continue to be a major driver for the industry. The continued expansion of mandatory business lines will also further boost the demand for insurance products, driving overall growth.

However, the sector has been put under pressure due to lower revenues because of a sharp correction in oil prices, burden on fiscal balances, and volatility in travel demand amid the current geopolitical scenario. Softer investment returns, rising reinsurance costs, high operational expenses, and increasing claims are also weighing on margins and overall profitability. Insurance penetration is projected to remain low during the forecast period due to low awareness and a relatively underdeveloped life insurance market.

The report notes that changing consumer behavior and adoption of digital technologies has compelled the regional insurance companies to create a new ecosystem in accordance with digitalisation preferences. At the same time, regulators across the GCC have introduced reforms as part of their broader FinTech strategy, including the adoption of InsurTech. Increasing digitalisation across businesses, financial institutions, and critical infrastructure sectors is accelerating the demand for cyber insurance solutions as organisations seek protection against evolving threats and operational disruptions. The region is also experiencing a heightened demand for specialty insurance products such as war-risk, marine, political risk, and cyber insurance on the back of rising geopolitical uncertainties and global risk dynamics.

Going forward, the GCC insurance industry is likely to move towards strategic expansion initiatives, with major insurers pursuing acquisitions of smaller companies, along with digital-first operators and aggregators. This is expected to enhance market positioning and operational efficiency, while fostering innovation and the introduction of new offerings.