DIFC Marks A Milestone With 61% Growth In Brokered Premiums In 2023

Arif Amiri, Chief Executive Officer of the DIFC Authority, highlighted the Dubai International Financial Centre's (DIFC) role as a leading (re)insurance hub in the Middle East, Africa, and South Asia (MEASA) region. Over the past 20 years, DIFC has enhanced its capabilities, serving both individuals and businesses. The Centre recorded its highest gross written premiums (GWP) at nearly $2.6 billion.

Amiri noted that DIFC continuously reviews and refines its competencies to address an evolving risk landscape. The Centre's (re)insurance industry benefits from cultural innovation, geographical connectivity, time zone advantages, and new distribution techniques. These factors have bolstered DIFC's position in the market.

The MEASA region presents numerous opportunities for the insurance industry due to its low insurance penetration compared to other global markets. Amiri pointed out that favourable demographics and increased technological adoption further support this growth. The insurance sector in this dynamic region has recognised the need to build extensive knowledge capabilities to meet international standards and optimise client servicing.

Trust remains a cornerstone of the insurance value proposition, and DIFC's efforts in this area have been significant. The rise of Managing General Agents (MGAs) within the Centre exemplifies this trend. MGAs are specialised intermediaries with underwriting authority from (re)insurers, offering flexibility and cost-effective market penetration.

MGAs cater to specific needs and can efficiently enter underserved markets without significant investment costs. Over the past five years, reinsurers have increasingly participated in creating MGAs to specialise in specific business lines. This trend strengthens DIFC's position as an insurance hub, with MGAs now accounting for 43 per cent of the sector.

Insurance brokers also play a crucial role in the value chain by understanding client needs and connecting them with suitable coverage options. DIFC is home to several world-class insurance brokers, including five top-ranked entities by AM Best. In 2023, brokered premiums at DIFC increased by 61 per cent year-on-year, surpassing the $2 billion mark.

Industry Engagement and Innovation

DIFC co-hosts globally renowned events such as the Dubai World Insurance Congress, fostering innovation and thought leadership within the industry. These events provide opportunities for continuous engagement, market access, transparent communication, and talent development.

A well-regulated insurance and reinsurance market is highly valued by customers for its trustworthiness and diverse product offerings. Being part of DIFC's ecosystem enhances these qualities, adding depth to the ever-evolving (re)insurance sector.

With inputs from WAM