DUBAI: Standard & Poor's (S&P) Global Ratings Agency said that it is likely that the total revenue growth of Gulf insurance companies will come from increased demand for insurance in 2024, as a result of continued economic growth in the region and rising prices.

Emir Mujkic, a credit analyst at the agency, said, "We expect the total revenue growth of Gulf insurance companies to range between 5% - 15% in 2024, with Saudi insurance companies expected to be the fastest-growing in the region, as favourable economic conditions and adjustments to insurance prices for vehicles and medical insurance remain key drivers of growth."

Demand for insurance will benefit from ongoing investments in infrastructure projects, population growth, and regulatory initiatives, such as expanding mandatory insurance coverage.

At the same time, a decline in inflation in vehicle insurance claims and non-life insurance activities will help insurance companies maintain their margins.

The agency expects the trend towards mergers and capital increases to continue in 2024, as a result of stricter regulations and strong competition at least.

According to Standard & Poor's, the credit conditions for rated Gulf insurance companies are likely to remain broadly stable in 2024, supported by strong capital margins, growth prospects, and sufficient profits.