As Nexus Financial Services, a division of GCC-based Nexus Group, looks to Kuwait as the next market for expansion, the company vows to raise the bar in the state’s mushrooming insurance market.
The company, with more than two decades of regional presence and offices in Dubai, Abu Dhabi, Qatar, Bahrain and Lebanon, says Kuwait is a key market and part of a wider regional expansion drive.
Mahmoud Nodjoumi, chief executive and founder of Nexus Group, believes that Kuwait is a strategic market for the company, and that it will stand out for its ability to “offer intricately tailored solutions”.
“I have no doubt that we can raise the bar here and appeal to a wide range of customers across the country,” he says.
The Gulf state, having recently embarked on its 10-year strategy to cut the expatriate population by one million, is the third-smallest insurance market within the GCC,
larger than Oman and Bahrain.
In fact a recent report by A.M. Best states that Kuwait’s insurance market is experiencing a period of uncertainty, particularly as premium growth has been volatile in recent years. Insurers currently await potential regulatory developments.
The rating agency’s report, titled “Kuwait’s Insurance Sector Faces Regulatory Uncertainty and Volatile Growth”, also predicts that the state’s gross premium written (GPW) will increase, but at a slower rate than most other GCC countries.
Sunit Arora, general manager for NFS in Kuwait, tells Kipp he doesn’t see Kuwait’s insurance market as a challenge, but an opportunity. “There is a gap in the market for an independent insurance advisor offering insurance, savings and investment products to both corporate and individual clients.”
Arora says that the current trend is turning to banks and stand-alone insurance providers for advice, but that they don’t always offer tailored solutions. “Nexus will prove a compelling and credible option,” he says.