France-headquartered global credit insurer Coface has obtained a new licence from the Dubai Financial Services Authority (DFSA) to offer insurance management and intermediation services in the DIFC, strengthening its presence in the UAE through insurance services.
Under the newly formed Coface Credit Insurance GCC, the company will provide insurance management services to support its insurance partners in the region, offering innovative coverage to protect trade receivables from the risk of non-payment and reduce costs associated with working capital management.
Mr Massimo Falcioni, Head of Middle East Countries at Coface, said: “The decision to establish a DIFC-licensed entity that offers insurance management and intermediation services reflects Coface’s long-term commitment to enhancing its presence in the Middle East. Well-established and diversified export and re-export trade ties between the UAE and the rest of the Middle East are crucial to the future of this region. The role of Coface in the region has become significant accordingly.”
The increase in insolvencies and payment defaults, due to the complex economic environment, has resulted in a rising need for GCC insurers to offer protection to small and medium-sized enterprises as well as large corporate firms through credit insurance solutions, empowered by Coface’s reinsurance capacity.
Mr Arif Amiri, CEO of DIFC Authority, said: “The insurance sector is key to enabling the growth of the world’s fastest region, by managing risk and encouraging investment in key expanding sectors. We are delighted to see Coface obtain another licence and we welcome their second office in DIFC in recognition of the fact that the region’s insurance sector is set to grow by double digits until 2020.”
Coface holds an information database on 80 million companies worldwide, including the Middle East. It has been present in the DIFC in the form of its subsidiary Coface Emirates Services since 2007, offering clients its vast knowledge of the GCC trade and export market. Today, Coface Emirates Services monitors a database of more than 33,000 companies, and provides credit opinions and sector analysis to banks, insurance partners, government institutions and companies in the GCC.
The Coface Group, which has more than 4,500 employees in 67 countries, secures the trade receivables of its 40,000 client companies in over 200 countries.