MENA: Reinsurers to hike premium rates next year
Source: Middle East Insurance Review | Dec 2020
Reinsurance companies will reduce their capacity in addition to increasing premium rates in the wake of the COVID-19 pandemic, said media reports citing Jordan-headquartered Apex Reinsurance Brokers CEO Zuhair Al Atout.
He said that during the current year, Europe raised its prices by more than 30%, especially in lines like fire insurance, and the Arab region will follow suit next year.
Furthermore small reinsurers in the region face the threat of closure unless premium rates are increased and premium collections are received in a timely manner, Mr Al Atout said.
He pointed out that unless premiums were collected promptly, insurance contracts would be terminated and there would be no insurance coverage for the client.
Commenting on the development of regional reinsurers, he said that they started out by providing fire, theft and engineering insurance, then developed cover for terrorism and liability. They will go on to provide cyber attack coverage for institutions and then eventually to everyone. M