Qatar Financial Centre Authority Publishes New Research on Reinsurance in the Gulf

GCC Reinsurance Barometer Shows Reinsurance Capacity Expected to Grow as Major Companies Position themselves for Future Growth

• 65% of insurance companies and brokers interviewed expect reinsurance exposure in the GCC to increase faster than GDP growth
• 82% of respondents interviewed expect regional reinsurance capacity to take an increasing share of the total market
• Global reinsurers are positioning themselves in the region to anticipate the expected growth to come
• Competition for market share is benefiting customers as pricing levels remain low

The Qatar Financial Centre Authority (‘QFC Authority’) has today unveiled new research into reinsurance in the GCC, establishing the first regular report monitoring the development of the sector in the Region. The GCC Reinsurance Barometer will be published twice yearly, providing a unique source of data about the regional market.

The research shows that interest in the market remains high among global and regional reinsurers. The GCC is regarded as one of the leading growth markets for the sector and is consequently attracting increasing amounts of reinsurance capacity.

Reinsurers recognise the potential of the region, due to the scale of the infrastructure construction programmes underway and the increasing take-up of insurance services, from a low base relative to the size of the regional economy.

Akshay Randeva, Director Strategic Development at the QFC Authority, commented;

“The QFC Authority is an active participant in the development of the financial services sector in the GCC Region. Through the Reinsurance Barometer we will assist all those doing business in the region to obtain a better understanding of current trends in the reinsurance industry.

The results we are reporting today show the belief of the reinsurance sector in the Gulf market. Even though the GCC has some of the highest economic growth rates in the World, people working at the heart of the sector still believe the reinsurance industry will grow faster than regional GDP.”

Interviews were conducted on behalf of the QFCA by Kai-Uwe Schanz, of Dr. Schanz, of Alms & Company, a Zurich-based consultancy. A total of 28 companies participated, represented by senior management responsible for the GCC Region. The interviews took place in December 2010 and January 2011.

Read the Report (pdf)