While there has been a marked increase in worldwide insurance premiums over the past few years, there has traditionally been low penetration of insurance products in the Middle East, and personal lines of insurance in particular.
This has resulted from factors including the general attitude to personal risk, a greater reliance on social welfare provisions and, in some regions, lower disposable incomes. While individuals in the Middle East may be aware of the need to insure, they generally either cannot afford the required protection or lack understanding of the products available. Indeed, certain basic elements of a conventional contract of insurance run contrary to some of the core principles of Islamic (Sharia) law.
