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APRIL 07, 2020 07:27 AM (EDT)

Best’s Commentary: Impact of Low Oil Price and COVID-19 on GCC and Russian Insurers


CONTACTS:
 Salman Siddiqui
Director, Analytics
+44 20 7397 0331
salman.siddiqui@ambest.com

Valeria Ermakova
Senior Director, Analytics
+44 20 7397 0269
valeria.ermakova@ambest.com
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
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Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

LONDON - APRIL 07, 2020 07:27 AM (EDT)
A sudden drop in oil prices in March 2020 further spooked financial markets already unsettled by the accelerating spread of the coronavirus (COVID-19). Oil prices were hit by weakened demand due to the COVID-19-related economic slowdown and excess supply.

A new AM Best commentary, “Impact of Low Oil Price and COVID-19 on GCC and Russian Insurers,” considers the likely effect of oil price volatility on the economies – and by implication, the insurance markets – of Russia and members of the Gulf Cooperation Council (GCC).

In general, insurers in oil-rich emerging economies have seen notable growth in gross premium revenues over the last few decades, stemming from an increase in insurable risks. However, in the face of lower oil prices and the prospect of a COVID-19-driven global recession, investment is expected to slow down considerably. As such, domestic risk carriers may no longer be able to achieve top-line premium growth at levels experienced over the past decade.

To access the full copy of this Best’s Commentary, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=296056 .

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.