DOHA: The Middle Eastern and North African reinsurance markets continue to benefit from the region’s robust economic expansion, according to the 2014 edition of the Mena Reinsurance Barometer published yesterday.
Growing insurance premiums and a relatively low exposure to natural perils are the main attractions, which drive the unabated increase in reinsurance capacity. The survey, issued on an annual basis by the Qatar Financial Centre (QFC) Authority, also found that fierce competition, intense pricing pressure and higher risk retentions by ceding companies weigh on the sector’s growth prospects.
“Due to its compelling fundamentals and expanding capacity, the Mena region continues to be an attractive destination for global reinsurers. As a leading business and financial centre, the QFC Authority will continue to support growth across a range of sectors in Qatar and the region by offering world-class business infrastructure and enhancing market transparency through thought-leading reports like this one,” said Shashank Srivastava, Chief Executive Officer and Board Member of the QFC Authority
This year’s Barometer is based on in-depth interviews with senior executives from 34 international and regional reinsurance companies and intermediaries operating in the region. As in 2013, the survey participants consider the region’s robust GDP and insurance market growth as the foremost relevant strength of the reinsurance marketplace. Since 2008 the economies grew at an inflation-adjusted rate of 4 percent, well above the global average of 2.9 percent. The Peninsula
