Dubai’s DIFC continues to strengthen its re/insurance capabilities: Arif Amiri

Arif Amiri, CEO of the Dubai International Financial Centre (DIFC) Authority, provides insights into the reinsurance industry. From the expanding opportunities in the MEASA region to the emergence of Managing General Agents (MGAs), Amiri explores key developments influencing the industry.

“Players within the insurance value chain are experiencing a surge in prominence driven by specialisation, revamped business models, technological innovation, and customer-centric products. New products dealing with new risks, augmented partnerships, new technologies such as AI, and new customer-centric offerings, have each empowered the insurance value chain to expand towards novel frontiers,” Amiri stated.

Amiri also highlighted the abundant opportunities available for the insurance industry in the Middle East, Africa, and South Asia (MEASA) region. With relatively low insurance penetration compared to other global markets, MEASA presents a burgeoning landscape, driven by favourable demographics and growing technological adoption.

He also emphasised that the insurance sector in the region has long understood the importance of developing extensive knowledge capabilities. This ensures that local markets align with the latest international standards, ultimately enhancing client service. Importantly, these capabilities foster trust, a cornerstone of the insurance value proposition.

Amiri added: “As a premium (re)insurance hub, Dubai International Financial Centre (DIFC) has strengthened its capabilities, servicing people and businesses in the region for the last 20 years. With the highest gross written premiums (GWP) recorded in its 20-year history, close to USD 2.6bn, DIFC is continuously reviewing and fine-tuning its competencies to cater to an evolving risk landscape. 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.”

“The rise in the number of MGAs in the centre is a significant trend in this direction. MGAs are specialised 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. This makes MGAs attractive to more underserved countries and reinsurers looking to build a localised portfolio without incurring significant investment costs.”

There is a growing trend of reinsurers collaborating in the establishment of Managing General Agents (MGAs) over the past five years. These MGAs offer a specialised platform for focusing on specific lines of business, presenting a mutually beneficial arrangement for all parties involved in the insurance value chain. This increasing prevalence of MGAs further solidifies DIFC’s position as a leading insurance hub. Recent data indicates that established international, regional, and emerging MGAs now constitute 43 percent of the sector within the centre, significantly contributing to DIFC’s premium growth.

Amiri also underscored the role of insurance brokers in the industry, acting as intermediaries between clients and suitable coverage options. Through their personalised approach, brokers deliver tailored insurance and risk management solutions that meet the unique needs of their clients.

As a result of this synergy between demand and service, DIFC boasts a diverse selection of world-class insurance brokers, with five among them ranked among the top entities by AM Best. Notably, the centre has experienced 61 percent year-on-year growth in brokered premiums in 2023, surpassing the USD 2 billion milestone.

DIFC remains committed to thought leadership within the insurance industry, offering opportunities for continuous engagement, transparent communication, and talent development.

“Certainly, a world-class regulated insurance and reinsurance market is prized by customers for the trustworthiness and peace of mind they offer through their diverse product offering and client-centric services. Being part of DIFC’s ecosystem augments these hallmarks, building character and depth to the ever evolving (re)insurance sector,” noted Amiri.

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