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DIFC posts 17.4pc growth in reinsurance during 2019

DUBAI, June 7, 2020

Dubai International Financial Centre (DEFC) has announced a sustained performance in the reinsurance sector, posting a growth of 17.4 percent in 2019, representing the highest volume of premiums ever written in the market.

The DIFC further confirmed that Gross Written Premiums (GWP) for the first quarter (Q1) of2020 reached $472 million, on par with the same period during Q1 2019, reflecting continued industry stability and resilience, according to a report carried by state-run news agency Wam.

The premiums cover different areas including marine, aviation, transport, health, property damage and liability, alongside other sectors. This growth was characterised by reinsurers, coverholders, managing general agents, and reinsurance brokers prioritising DIFC’s world-class enabling and dynamic business environment over other global financial centres to gain access to the MEASA region, the DIFC statement said.

During the last 16 years, DIFC has emerged as the leading reinsurance hub in MEASA region. It is now home to more than 100 registered insurance, reinsurance, captive firms and insurance-related entities serving the market, including three of the top five global insurance companies. The Centre has attracted world-renowned global companies including Munich Re, Lloyd’s, Berkshire Hathaway Specialty, RGA, Korean Re, AIG, Zurich, Marsh, and AON.

The recent emergence of InsurTech pioneers now represent a total of ten insurance-related institutions registered at the Centre. As part of DIFC’s vision to shape the future of finance, InsurTech is transforming the industry through developments through digitalisation, innovation and collaboration. Start-ups are able to collaborate with insurance and reinsurance leaders to deliver solutions that address the growing requirements for the future insurance industry including AIG, AXA Gulf, Cigna Insurance Middle East S.A.L., Insurance House, MetLife, Noor Takaful, and Zurich Insurance Company Ltd (DIFC).

Arif Amiri, Chief Executive Officer, DIFC Authority, said: "Our strong performance in reinsurance sector in Q1 2020 and throughout 2019 stems from our long standing commitment to the sector. Whilst providing the most proven legal and regulatory frameworks for insurance and reinsurance leaders in the region, our approach also allows InsurTech start-ups to collaborate with top reinsurance leaders in DIFC to address tomorrow’s requirements.

"As part of our focus on shaping the future of finance, we are embracing digitalisation, collaboration and talent which can deliver large-scale changes in the sector and create the next generation of financial services professionals. This is especially important as the insurance sector continues to evolve which requires us to be in a position to meet the industry’s evolving requirements, underlining our commitment to leading reinsurance sector growth in the region."

DIFC said it plans to attract further reinsurers from Europe and Asia to increase the Centre’s capacity, and provide an international platform to regional players for their global benchmarking growth plans.

Memorandum of Understandings have been signed with Lloyd’s, the world’s leading insurance and reinsurance marketplace, as well as UK-headquartered Chartered Insurance Institute to develop talent within the local insurance and reinsurance landscape in line with international best practice.




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