The news comes as the Dubai International Financial Centre (DIFC) continues to strengthen its position as a global hub for the insurance and reinsurance industry.
The DIFC has recently welcomed a number of organisations including Hensley Wynne Furlonge Partners (Middle East) Ltd, Swan Insurance Management Agency Ltd, Waica Reinsurance (DIFC) Ltd and YOA Risk Services Ltd. They join industry stalwarts such as AIG, Zurich, Aon and Willis in accessing the world’s largest untapped market through the DIFC.
The new entrants cover a wide range of insurance and reinsurance lines that will enable them to grow throughout the region. These lines include transactional risk insurance within the M&A process, medical, personal accident, travel, property, engineering, liability and marine.
In addition, in support of the Centre’s vision to drive the future of finance, Virtual I Technologies Ltd, an insurtech company from the DIFC Innovation Hub, has become the first insurtech company to upgrade and obtain a regulatory licence from the Dubai Financial Services Authority (DFSA).
Virtual I Technologies Ltd has developed an AI-based risk assessment tool and has entered a new phase of growth – becoming a capacity distributor based on a digital gateway platform between capacity providers, global agents, local agents and retail brokers.
The DIFC also revealed that it has seen an influx of insurance and reinsurance players over the past five years, with 43 per cent of managing general agents (MGAs) from Africa, Asia, Europe and the Middle East contributing to the $2.1bn market.
“The Centre’s vision to drive the future of finance”
As a market creator, the DIFC has built a globally recognised regulatory environment with strategic, financial and operational benefits associated with geographical expansion for reinsurers, brokers, independent MGAs, Lloyd’s service companies and cedants. In addition, buoyant oil prices, increased infrastructure spending and low insurance penetration in the region have been positive for the reinsurance market within the DIFC.
Arif Amiri, CEO of the DIFC Authority, commented: “The DIFC has been delighted to welcome an impressive stream of new insurance and reinsurance companies in the first nine months of 2023, which is on track for annual growth of 20 per cent.
“Today, we are home to more than 100 registered insurers, reinsurers, captives and insurance-related entities that use our platform to achieve their growth ambitions.
“Our world-class laws and regulations are comparable to other advanced markets around the world, enabling our insurers and reinsurers to operate with confidence in the jurisdiction, tap into new growth opportunities in the region and collectively contribute to the Centre’s vision of driving the future of finance.”
Driving development
Over the past 20 years, the DIFC has been a driving force in the development of the insurance and reinsurance industry. This includes co-hosting the Dubai World Insurance Congress, which has quickly become a key forum for addressing key issues and opportunities for the sector. The 2023 event brought together more than 1,100 industry professionals from 60 countries around the world to discuss supporting economic growth, attracting talent to the insurance industry, embracing technology and supporting climate change and decarbonisation initiatives.
Encouragingly, an independent survey conducted during the Congress revealed that 87% of respondents are confident in the MEASA market and the strategic opportunities it presents.
The survey also highlighted that property, health, energy, cyber and casualty lines of business hold the greatest potential for the MEASA region. Reflecting the growing sophistication of insurance markets and the increasing demand for insurance/reinsurance, the survey found that 85 per cent of respondents are confident about 2023 renewals and the ability to retain clients.
