Market conditions present challenges and opportunities for reinsurers domiciled in the Middle East and North Africa (MENA) region, according to a new AM Best report.
The Best’s Market Segment Report, “Conditions are Testing, but MENA Reinsurance Capacity Remains Dynamic and Abundant”, says that increased natural catastrophe activity, volatile oil prices, heightened geopolitical tension, increased public debt burdens and high inflation are some of the hurdles MENA reinsurers are currently navigating.
Despite a turbulent operating landscape, the report notes that the region remains attractive for reinsurers with new capacity entering the market.
Reinsurance opportunities remain plentiful despite high risk factors, benefitting from positive pricing momentum and growing primary insurance markets.