The GCC’s construction insurance sector is expected to see a surge starting this year. The region will invest more than $900bn in infrastructure projects over the next decade. In the next eight years, the member-countries together, will be spending around $100bn in the road and rail projects alone.
The insurance industry in the region is undergoing transformation and there is a tremendous potential for the regional insurance market to grow and thrive, top industry leaders noted at the Middle East Insurance Forum in Bahrain this week.
“With many major projects in the pipeline, there will be significant demand from insurance and risk management expertise. This will present a great opportunity for the local insurance market to participate in the risk transfer options,” a top executive of Marsh & McLennanr said. “The scale of complexity of the project would call for proven experience and value-added service for the project owners,” he added.
As of now at least twenty companies are involved in the construction insurance sector and more companies are in the process of making an entry, said another brokering company, which is involved in city developments and solar technology projects in Qatar.