UAE: Insurance market seen as able to cope with reinsurance premium hikes
Source: Middle East Insurance Review | Dec 2021
The UAE insurance market is able to absorb tighter conditions expected to be imposed by international reinsurers in next year’s renewals thanks to its absorption of reinsurance price increases over the past four years, as well as the positive financial results achieved by the main players in the local market.
Insurance executives said that reinsurance premium increases will be a reality next year, reported Al Roeya. The expected increases are related mainly to weather events and disasters, especially floods and hurricanes. The decline in interest rates has also put pressure on international reinsurers.
General Arab Insurance Federation secretary-general Chakib Abouzaid said that reinsurance price hikes in the Arab region will be more evident in major classes of insurance such as health. The hikes will also be evident in liability risks such as professional and medical liability, in addition to special risks such as terrorism and violence. The risk of fires, especially in warehouses and towers, remains among the main concerns of international reinsurers, he said. M