DIFC Achieves Highest Gross Premiums In 20 Years, Close To $2.6 Billion

Arif Amiri, Chief Executive Officer of the DIFC Authority, said the center has recorded the highest gross written premiums in the last 20 years, close to $2.6 billion.

Amiri noted that "DIFC's (re)insurance industry has further been bolstered through its rate of cultural innovation, access to new markets through advantageous geographical connectivity, time zone advantages, and new distribution techniques," WAM reported.

He acknowledged that the Middle East, Africa, and South Asia (MEASA) region offers a wide range of opportunities for the insurance industry. The CEO pointed out that there is low insurance penetration in the region compared to global markets. Hence, it is a developing market.

"Being a dynamic geographic region, the insurance sector has long recognized the need to build extensive knowledge capabilities, ensuring local markets adhere to the latest international standards, thereby optimizing client servicing. Most importantly, these capabilities build trust; a hallmark of the insurance value proposition," the Dubai International Financial Centre head said.

The CEO explained that as a premium (re)insurance hub, DIFC has improved in terms of capabilities, servicing people and businesses in the last 20 years in the region, highlighting that the highest gross written premiums (GWP) have been recorded in its history, totaling $2.6 billion.

Amiri said that the financial center is being reviewed and evolved continuously to ensure that it caters to the growing landscape. He mentioned that the industry has become stronger due to its cultural innovation, access to new markets through advantageous geographical connectivity, time zone advantages, and new distribution techniques.

Moreover, he also emphasized the increased number of Managing General Agents (MGAs) in the center as an important trend in this direction.

"MGAs are specialized intermediaries, vested with underwriting authority from (re)insurers. Due to their robustness, resilience and flexibility, MGAs can cater to specific needs and can penetrate markets in a more efficient, cost-effective way," he explained.

"This makes MGAs attractive to more underserved countries and reinsurers looking to build a localized portfolio without incurring significant investment costs. As a result, reinsurers have increasingly participated in the creation of MGAs over the last five years, as they offer a vehicle to specialize in specific lines of business," Amiri added.

According to the CEO, the MGAs are in favorable positioning, as a result, it is a win-win for all partners in the value chain. As per the latest data, international, regional, and start-up MGAs at the center are now a total of 43% of the sector, which has contributed to the DIFC's premium growth.