Dubai International Financial Centre Sets Record with $2.6 Billion Gross Written Premiums in 2023
In a groundbreaking achievement, Dubai International Financial Centre (DIFC) has reached its highest gross written premiums in its 20-year history, totaling $2.6 billion in 2023. This marks a remarkable 23 percent increase from the previous year.
DIFC: A Global Financial Center with Unmatched Growth
DIFC, a renowned global financial center in the Middle East, Africa, and South Asia region, serves as a vital link between the rapidly expanding markets of the region and the global economy. Apart from financial services, DIFC also offers a plethora of dining, retail, and living amenities, making it a well-rounded hub for industry professionals and residents alike.
Record Increase in Insurance and Reinsurance Firms Registration
DIFC also witnessed a significant 20 percent increase in the registration of insurance and reinsurance firms, including the groundbreaking entry of a Guernsey-based captive entity. The Emirates News Agency hailed DIFC as the primary hub for the (re)insurance industry, attributing its appeal to managing general agents (MGAs) as a key factor shaping the insurance landscape.
Factors Driving Industry Stakeholders to DIFC
The surge in global insurers, reinsurers, brokers, captives, MGAs, and other industry stakeholders flocking to DIFC is fueled by various factors. These include robust oil prices, increased infrastructure investments, focus on sustainable projects, and low insurance penetration in the region.
Notable Additions to DIFC’s Insurance Sector
In the past year, prominent entities such as Alif Limited, Arc Insurance and Reinsurance Limited, and Barents Risk Management Limited have joined DIFC’s thriving insurance sector. Additionally, BharatRe Global Ltd. and several others have also become part of DIFC’s growing ecosystem.
DIFC: A Global Industry Hub
Arif Amiri, CEO of DIFC Authority, highlighted DIFC’s pivotal role as a global industry hub, accommodating over 120 registered insurers, reinsurers, captives, MGAs, and related entities. The center’s stature in the insurance domain was further emphasized by its co-hosting of the Dubai World Insurance Congress, focusing on key themes reshaping the industry’s future.
Confidence in Strategic Opportunities and Potential Markets
A survey conducted at the Dubai World Insurance Congress in 2023 revealed an overwhelming 87 percent confidence in strategic opportunities within the Middle East, Africa, and South Asia markets. Property, health, energy, cyber, and liability lines of business were identified as holding significant potential, with an 85 percent confidence rate in renewals and client retention.
DIFC: Nurturing Growth in Insurance and Reinsurance
Over the past two decades, DIFC has played a pivotal role in fostering the growth of the insurance and reinsurance industry, attracting top talent and expertise to access key markets in the Middle East, Asia, and Africa. The center hosts major insurance brokers, with five of them ranked highly by AM Best, contributing to a substantial 61 percent increase in brokered premiums compared to the previous year.