Market pricing sustainability and practices in the Gulf Cooperation Council region

Abstract

The Arab Gulf States global trade activities have led to constant variation in marine cargo insurance capacity and cycles. A perceived lack of insurance cycles consequently influences insurers underwriting profits when operating in member countries of Gulf Cooperation Council (GCC). This exploratory review examined the terms and conditions of market pricing sustainability, the isolating actions deployed to mitigate the insurance cycle's effects, and the cultural norms and practices influence on underwriting. An analysis of a ten-year quantitative data set showed a lack of evident outcome in the insurance capacity and their level of profitability in the region's dense competition between insurers in the overall GCC market. Thus, this review further interviewed marine department heads or dedicated marine cargo underwriters from the region to explain insights and the chosen decisions. The perspicacity of two professional underwriters with knowledge of this region's marine cargo insurers contributed additional value to the data.