June 21, 2024

DIFC delivers record 23 per cent YoY growth in underwriting volumes

Dubai International Financial Centre (DIFC), the leading global financial hub in the Middle East, Africa and South Asia (MEASA) region, has consolidated its position as the principal hub for the (re)insurance industry, with the highest gross written premiums (GWP) recorded in its 20-year history at close to USD 2.6bn, up 23 per cent from USD 2.1bn in 2022.

Supporting the record high in GWP, the Centre also announced a 20 per cent increase in registration of insurance and reinsurance firms in DIFC, including the first re-domiciliation of a Guernsey-based captive.

DIFC has strengthened its position as a top-tier global hub for Managing General Agents (MGAs), which represent 43 per cent of new registrations owing to its globally recognised regulatory environment that enables partnerships with cedants and brokers.

Additionally, global insurers, reinsurers, (re)insurance brokers, captives, MGAs, Lloyd’s service companies and coverholders, consultancy companies, compliance firms, and risk management organisations prefer operating from DIFC, in part due to buoyant oil prices, increased infrastructure spending, a focus on sustainable projects, and low insurance penetration in the region. DIFC’s (re)insurance industry has been further bolstered through its rate of cultural innovation, which includes the steady integration of new technologies such as artificial intelligence (AI) and new distribution techniques that are reshaping the future.

Alif Limited, Arc Insurance and Reinsurance Limited, Barents Risk Management Limited, BharatRe Global Ltd., Chedid Reinsurance Brokers (DIFC) Limited, Hensley Wynne Furlonge Partners (Middle East) Ltd, Octare Group Ltd., Pacific Prime International Limited, PEX Re Limited, Swan Insurance Management Agency Ltd, Waica Reinsurance (DIFC) Ltd, YOA Risk Services Ltd, and Proton Reinsurance Limited, the first Insurance Innovation Testing Licensee, are among some of the companies to join DIFC’s burgeoning insurance sector in the past 12 months.  

Arif Amiri, Chief Executive Officer, DIFC Authority, said: “DIFC is now home to more than 120 registered insurers, reinsurers, captives, MGAs, and insurance-related entities, reaffirming our position as a global hub for the industry. Our platform enables clients to achieve their growth ambitions, which was reflected in the achievement of close to USD 2.6bn gross written premiums during 2023, the highest in the Centre’s history. Our ongoing partnership with Global Reinsurance for the Dubai World Insurance Congress, reflects DIFC’s commitment to driving economic growth and the future of finance.”

DIFC also remains the co-host of the Dubai World Insurance Congress (DWIC), one of the biggest global insurance events, which is set to convene over 1,300 delegates, almost a 20 per cent increase compared with last year, from over 73 countries on 29-30 April at Atlantis, The Palm. Notable speakers include Vicky Carter, Chair of Global Capital Solutions and Andrew Horton, Group Chief Executive Officer of QBE. The key themes at this year’s Congress which will reshape the industry’s future include attracting capital, building capacity, embracing innovation, nurturing artificial intelligence, navigating volatile risks and developing talent. The event will also showcase a shark-tank style pitch by participants from the Lloyd’s Lab, an accelerator programme designed to stimulate innovation in the industry.

A survey conducted at DWIC in 2023, found that 87 per cent of respondents were confident in the MEASA market and the strategic opportunities it holds. Property, health, energy, cyber and liability lines of business hold the most potential for the MEASA region, the survey found. In 2023, 85 per cent of respondents said they are confident in renewals and their ability to retain clients.

Over 20 years, DIFC has driven the development of the insurance and reinsurance industry, attracting sectoral talent and technical expertise to access key markets in the Middle East, Asia, and Africa. The Centre is also home to renowned insurance brokers, five of whom are among the top ranked entities by AM Best. This has supported the powerful growth in brokered premiums by 61 per cent vis-à-vis 2022, crossing the USD 2bn mark, reaffirming DIFC’s position as a recognised global market for insurance and reinsurance placements.

Last Updated on 2 months by Middle East News 247

    Middle East News 247

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