The ongoing instability in the Middle East region is viewed as a temporary phase, with significant opportunities for growth awaiting the insurance market in MENA. In particular, reconstruction efforts are expected to spur investments across the region, which will positively impact the insurance industry, says Cope Reinsurance Brokers’ (Cope Re) Mr Joseph Faddoul.
Over the past few years, investment activities gained significant momentum in the insurance industry and other economic sectors. Despite localised volatility, there is a widespread belief that the region has a promising future, said Cope Reinsurance Brokers CEO Joseph Faddoul.
Even before the eruption on 28 February 2026 of the current crisis, which underscores the region’s inherent volatility, it was acknowledged that the region is prone to instability; however, it is also heading for a massive reconstruction phase, he said.
“The destruction and unrest that have hit several countries in the region are expected to drive demand for infrastructure and development projects, which will ultimately benefit the insurance industry. The experience in countries such as Syria, Sudan, and Libya confirms this reality. These countries, among others, have suffered extensive damage that requires monumental reconstruction efforts. The large-scale projects expected to take place across the region will support the insurance industry.”
He described the current volatile status as a temporary difficult phase the region is going through. “Overall, there has been a slowdown in investment activity due to the ongoing crisis. This is temporary, as investments are expected to rebound once stability returns. I’m optimistic that the region is heading toward prosperity. What we are witnessing today is investment in tomorrow’s prosperity.”
Current market trends
In the wake of the ongoing US-Iran war, demand has increased for certain products, including political violence (PV) and marine war-related insurance covers as well as group life protection, said Mr Faddoul. “Demand for these products was relatively low in the Gulf region before the war because clients believed their exposure to such risks was limited.”
He added that providers have been active in writing these risks recently; however, underwriters’ responses vary depending on the situation on the ground.
Despite the opportunities emerging in the PV and marine war-related covers, prices are increasing while capacity is shrinking, he said, noting that reinsurance capacity is closely tied to stability and to how underwriters assess the overall landscape.
He said, “There is sufficient capacity to cover the markets, but reinsurers react according to the severity of the geopolitical situation.
“Now, due to political tensions, securing reinsurance capacity to cover these risks requires more time and effort. In the past, access to such capacity was much easier than it is today.”
He explained that underwriters have become more conservative, charging higher prices due to the increased exposure to risk. “Considering specialty insurance products, they are generally more of commodity lines, therefore they are more volatile lines, as they are heavily influenced by the daily news cycle. Underwriters constantly adjust their approach in addressing rates and conditions depending on the situation. This is something that is affecting the entire region.”
This cautious approach often affects the entire region regardless of where the actual tension is located or where the direct impacts are actually felt. He added that the underwriters’ reaction is often reflected on the region as a whole, regardless of where the tensions are actually being felt. “They tend to view the region through the same lens, which places a greater burden on us to continuously explain the nature of the risk and its specific geographical scope.”
MENA holds potential
Conflict and geopolitical turmoil should not cloud the outlook for the future of the insurance industry in the MENA region, said Mr Faddoul.
“There are great opportunities in all lines of business, which requires providers to double their efforts to unlock the region’s full potential. The recent instability has also created an opportunity for players to learn how to address the risks in the region. It has become a learning curve for all actors, including underwriters and brokers, highlighting the need to dissect the region rather than viewing it as a single block. Risks and exposures must be weighed individually depending on the situation on the ground.”
He noted that the GCC remains relatively more stable within the regional context. “There are strong institutional foundations and clear national visions for the future. However, some other countries in the region lack this stability and long-term vision. They do not have the minimum level of stability.”
Generally, insurance industry stakeholders have to create awareness and acknowledge the reality that risk exposure exists, vis a vis their clients, said Mr Faddoul.
“This should be considered for all lines of business. There are new risks such as cyber, and D&O, which carry significant exposure but have limited awareness. Every line holds great potential and contributes to business growth.”
The region is generally full of untapped potential, he emphasised. “Compared to advanced and developing countries, MENA has the greatest potential. Growth rates in the region’s insurance industry are much higher compared to those in other advanced and developing markets. The insurance industry must capitalise on this.”
Adopting a positive mindset
Providers have various business plans in place to deal with different scenarios, said Mr Faddoul. “These include contingency plans, continuity, succession, and expansion plans, among others.”
He added, however, the plans may not suffice in the current fluid market conditions.
Therefore, despite the importance of planning, adopting a productive mindset becomes even more critical, he said. “It is vitally important to maintain an adaptive mindset in order to cope with the changing situation. This is especially important for reinsurance brokers because they are bound by commitments and obligations to deliver to insurance companies.”
He recommended that brokers focus on getting the job done, responding to their clients’ demands and be willing to adjust. “The role of the broker is to have the right mindset to go the extra mile and do more to provide better alternatives for the insurance company.”
Forging ahead with expansion plans
Despite the region’s uncertainties, Cope Re is moving forward with its expansion plans, with preparations underway to launch its DIFC operation this year. The brokerage has also begun the licence application process to establish a presence in Saudi Arabia. “Those are our two major expansion steps in the region. We already have our team present in Cyprus, Greece, Jordan, Kuwait, Lebanon, Oman, Tunisia and the UAE. Opening in Saudi Arabia and the DIFC will strengthen our regional presence and upgrade our market position.”
Cope Re is a young reinsurance brokerage, established in September 2023 in Cyprus. Yet, it has managed to achieve regional scale within a short period of time, he said. Cope Re commenced its operations at the end of 2023.
“Cope Re has demonstrated a high level of quality and stability, which are two key differentiators. Despite the crowded market and the large number of reinsurance brokers and MGAs, there remains a need for serious players with the ability to respond effectively to market needs.”
The brokerage company built a premium volume of $54m in 2025, its second full year of operation. Mr Faddoul said, “In the first quarter of 2026, we achieved over 50% growth compared to the same quarter last year. We focused on productivity and maximising the capabilities of our small team. We continue to be very optimistic about the future of the region; the current circumstances should not define our future.” M