Arif Amiri, Chief Executive Officer of the DIFC Authority, stated that the DIFC, as a premier (re)insurance hub, has enhanced its services, supporting individuals and businesses in the region for the past 20 years.
“With the highest gross written premiums (GWP) in its 20-year history, nearly $2.6B, DIFC is continuously refining its capabilities to meet an evolving risk landscape. The (re)insurance industry at DIFC has further strengthened through cultural innovation, access to new markets via advantageous geographical connectivity, time zone benefits, and new distribution methods,” he said in a press release.
The Middle East, Africa, and South Asia (MEASA) region offers numerous opportunities for the insurance sector, he added. “With low insurance penetration compared to other global markets, the MEASA region is relatively new, supported by favourable demographics and increased technology adoption. The insurance sector here recognises the need to build extensive knowledge capabilities, ensuring local markets adhere to the latest international standards, thereby enhancing client service. Most importantly, these capabilities foster trust, a cornerstone of the insurance value proposition.”
As a leading (re)insurance hub, the Dubai International Financial Centre (DIFC) has strengthened its offerings, serving people and businesses in the region for two decades, he continued. “With nearly $2.6B in GWP, the highest in its 20-year history, DIFC is continually enhancing its competencies to address an evolving risk landscape. The (re)insurance sector at DIFC has benefited from cultural innovation, market access through geographic connectivity, time zone advantages, and new distribution techniques.”
He noted the increase in Managing General Agents (MGAs) at the Centre as a significant trend. “MGAs are specialised intermediaries with underwriting authority from (re)insurers. Due to their robustness, resilience, and flexibility, MGAs can meet specific needs and penetrate markets more efficiently and cost-effectively. This makes them attractive to underserved countries and reinsurers looking to build local portfolios without significant investment. Consequently, reinsurers have increasingly supported the creation of MGAs over the past five years, allowing them to specialise in specific business lines. This trend positions MGAs favourably in the insurance industry, benefiting all partners in the value chain. According to our latest data, international, regional, and start-up MGAs in the Centre now make up 43% of the sector, significantly contributing to DIFC’s premium growth.”
Similarly, insurance brokers play a crucial role in the insurance value chain by understanding client needs and matching them with appropriate coverage options. They provide tailored, comprehensive insurance and risk management solutions.
DIFC, he said, is “home to a wide range of world-class insurance brokers, including five top-ranked entities by AM Best. The Centre has also increased its brokered premiums by 61% year-on-year in 2023, surpassing the $2B mark.”
By co-hosting globally renowned events such as the Dubai World Insurance Congress, “DIFC fosters innovation and thought leadership in the industry, providing opportunities for ongoing engagement, market access, transparent communication, and talent development. A world-class regulated insurance and reinsurance market is valued by customers for the trust and peace of mind they offer through diverse products and client-centric services. Being part of DIFC’s ecosystem enhances these attributes, adding depth to the ever-evolving (re)insurance sector.”
