DIFC Reports Significant 35% Increase In Insurance Business During Dubai World Insurance Congress

Dubai International Financial Centre (DIFC) has reported a significant increase in gross written premiums, rising by 35% from USD 2.6 billion to USD 3.5 billion in 2024. This announcement was made by Alya AlZarouni, Chief Operating Officer at DIFC Authority, during the Dubai World Insurance Congress. The event is hosting 1,700 participants from 82 nations, reinforcing DIFC's status as the region's sole insurance and reinsurance hub.

The Dubai World Insurance Congress, co-hosted by Global Reinsurance (GR), has seen its attendance grow from 1,300 delegates in 2024. Registrations closed a month early due to high demand. The event now spans three days and explores industry trends such as climate change, technological shifts, and new risk modelling methods. Over 6,000 meetings have been scheduled for deal-making among attendees.

During the Congress's first day, DIFC and Asia House released a report titled 'Embedding Resilience: Opportunities for the Global Insurance Industry’. This report highlights opportunities for insurers and reinsurers to bridge the gap between insured and uninsured assets while attracting necessary investments. Arif Amiri, CEO of DIFC Authority, stated: "DIFC is well positioned to broaden and deepen its role as the region’s leading insurance hub."

The global insurance industry is valued at USD 8 trillion and continues to expand due to increasing demand for resilience against extreme weather events and cyberattacks. This growth is mirrored in the Middle East, where insurance supports capital flows into large construction and energy projects. The sector benefits from regional investments in tourism, retail, and infrastructure aimed at reducing reliance on fossil fuels.

Insurers are leveraging artificial intelligence (AI) to enhance claims processing and product customisation. InsurTechs are collaborating with established firms to reduce regulatory and investment costs. Additionally, Web3 and crypto assets present new growth avenues as decentralised finance becomes a prominent trend in global finance.

DIFC aims to strengthen the insurance ecosystem through ongoing engagement, transparent communication, timely data access, talent development, and education provision. These advantages make Dubai an attractive global hub for insurance and reinsurance.

The Middle East insurance market is thriving due to significant regional investments in mega tourism projects and infrastructure developments that diversify economies away from fossil fuels. Dubai ranked first globally for greenfield foreign direct investment (FDI) projects in tourism during the first half of 2024.

Consumer awareness of insurance products is increasing in the region thanks to a supportive regulatory environment. DIFC attracts more captive insurers and InsurTechs while enhancing its role as a global hub for managing general agents (MGAs). This expansion strengthens the local market by offering more product choices.

The report underscores that insurers should capitalise on these opportunities identified within DIFC’s inaugural report on global industry prospects. With over 125 insurance entities based there, DIFC encourages them to leverage these themes for growth.

With inputs from WAM