The MENA region still attracts so many capacities

Magazine Issue:

Reinsurance, an indestructible market [3]

Magazine date:

Oct 2014

According to A.M. Best, the MENA region has generated 35 billion USD of insurance premiums in 2013. Despite the slowdown of economic activity between 2008 and 2012, the growth potential of commercial risks is still maintained, offering opportunities for reinsurers.

The recent increase in infrastructure expenditure and the regain of consumer confidence have enabled real estate and local financial markets to bounce back. These developments, combined with the introduction of new compulsory covers, have stimulated demand for reinsurance despite the slight increase in retention.

Although a few major players have reduced their exposure in the countries of the Gulf Cooperation Council, the global reinsurance capacity remains very high and will continue to increase.