Dubai - Arabstoday
The GCC has the lowest insurance penetration and density in the world, according to an economics expert. The penetration rate in the GCC which increased from 0.6 per cent in 2000 to 1.3 per cent in 2010 remains much lower than the global average of 6.9 per cent, the emerging markets average of 3.0 per cent and the average of 8.1 per cent in the Organisation of Economic Cooperaton and Development nations in 2010. According to T.M Lakshmanan, COO of Alpen Capital, the region\'s combination of high GDP and low penetration underlines a significant growth potential for GCC insurance companies. \"Overall the outlook for the insurance sector in the GCC region is positive. While regional valuations are attractive, low insurance penetration and density reflect the opportunities for companies in the sector to position themselves strategically for periods of high growth,\" he said.