MENA: 2022 reinsurance renewals expected to see higher prices - GAIF
Source: Middle East Insurance Review | Dec 2021
Reinsurance prices are expected to increase next year due to challenges facing the industry, such as climate change, according to SCOR CUO, P&C reinsurance, Middle East and Africa Hedi Hachicha.
He was speaking at the 8th virtual symposium organised by the General Arab Insurance Federation (GAIF). The webinar participants discussed developments in the Arab markets ahead of the 2022 reinsurance renewals. They also talked about the extent of the impact of climate change and recent catastrophes on global reinsurance prices.
Another speaker, AM Best’s general manager for market development for MENA, South and Central Asia Vasilis Katsipis noted that global reinsurers did not achieve high profits in the past five years but are forced to deal with catastrophes and a low return on capital.
As for the challenge of climate change, Morocco’s national reinsurer Société Centrale de Réassurance CEO Youssef Fassi Fehri cited data from the UN Intergovernmental Panel on Climate Change, that indicate that the region will be exposed to many disasters in the coming period. In this regard, Mr Hachicha praised Morocco’s experience as represented by the Solidarity Fund against Natural Disasters and called on other countries to prepare for natural disasters and reduce the insurance gap.
Kuwait Re CEO Dawoud Al-Duwaisan said that Arab reinsurers face many difficulties, but there are also opportunities for the Arab reinsurance industry to prosper.
Around 270 participants from various Arab countries and Europe attended the virtual GAIF event. M