61% increase in insurance premiums collected through brokers in "Dubai International Financial"During 2023
Dubai, May 16 / WAM / Insurance premiums collected through brokerage companies in the Dubai International Financial Center during the year 2023 increased by 61% on an annual basis, exceeding the barrier of $2 billion, out of $2.6 billion in total written insurance premiums recorded by the center in the year. the past.
Arif Amiri, CEO of the Dubai International Financial Center Authority, said in a statement to the Emirates News Agency, WAM, that the center hosts a wide range of the most famous insurance brokerage companies, including five of the highest-rated entities according to the “AM Best” credit rating agency in the sector. Insurance.
He added that regional and international general insurance agencies represent 43% of the insurance sector companies operating in the center, considering them a major support for the growth of insurance premiums there, given that they are the preferred choice for reinsurance companies looking to expand in the region without incurring large investment costs outside their core markets.
He pointed out that the increase in the number of general insurance agencies in the center constitutes an important trend in enhancing the dynamism of the insurance market. As specialized brokerage companies, they are authorized to underwrite insurance and reinsurance companies. They are characterized by being more flexible and able to meet specific needs compared to others, and they can access the markets in a more efficient and economically feasible way.
He explained that agencies are considered a preferred option for reinsurance companies, which are looking to build a local portfolio without incurring large investment costs outside their core markets.
Amiri pointed out that reinsurance companies have increasingly participated in establishing general insurance agencies over the past five years, because they provide a means to specialize in specific business areas, stressing that the growing number of these agencies enhances the position of the Dubai International Financial Center in the field of insurance.
He pointed out that climate fluctuations, cyber attacks, conflicts and supply chain disruptions increase the role of the insurance sector around the world as a risk transfer mechanism.
The CEO of the Dubai International Financial Center Authority stressed that the low insurance penetration rates in the Middle East, Africa and South Asia region compared to other global markets increases the opportunities for growth of the sector in the region, given that it has a favorable demographic composition and its increasing dependence on technology as a relatively emerging region.
Amiri stressed that the Dubai International Financial Center has strengthened its capabilities in the field of insurance at the regional level over the past twenty years, and that it is constantly reviewing and building its capabilities and competencies to keep pace with changes and developments in the risk management system, pointing to the strengthening of the insurance and reinsurance sector in the center further through innovation. Cultural, which includes the continuous integration of new technologies such as artificial intelligence, access to new markets, and new distribution methods to advance the future of the sector.
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