DIFC delivers record 23 per cent YoY growth in underwriting volumes reaching an annual USD 2.6bn in gross written premiums
In a significant milestone, the Dubai International Financial Centre (DIFC) has solidified its position as a premier global financial hub for the insurance and reinsurance industry. DIFC reported the highest gross written premiums (GWP) in its 20-year history, reaching close to USD 2.6 billion, marking a remarkable 23 percent increase from USD 2.1 billion in 2022.
This achievement is bolstered by a notable 20 percent rise in the registration of insurance and reinsurance firms within DIFC, including the milestone of the first re-domiciliation of a Guernsey-based captive. DIFC has emerged as a top-tier global hub for Managing General Agents (MGAs), with 43 percent of new registrations attributed to this sector. This growth is attributed to DIFC's globally recognized regulatory environment, fostering partnerships with cedants and brokers.
The surge in (re)insurance activity in DIFC can be attributed to several factors, including buoyant oil prices, increased infrastructure spending, a focus on sustainable projects, and low insurance penetration in the region. DIFC's commitment to cultural innovation, integrating technologies such as artificial intelligence (AI), and adopting new distribution techniques, has further propelled the growth of its insurance sector.
Over the past year, DIFC has welcomed several notable companies to its burgeoning insurance sector, including Alif Limited, Arc Insurance and Reinsurance Limited, Barents Risk Management Limited, BharatRe Global Ltd., and others. These additions have contributed to DIFC's thriving ecosystem, which now hosts over 120 registered insurers, reinsurers, captives, MGAs, and insurance-related entities.
Arif Amiri, Chief Executive Officer of DIFC Authority, expressed pride in the Centre's achievements, stating, "Our platform enables clients to achieve their growth ambitions, reflected in the achievement of close to USD 2.6 billion gross written premiums during 2023, the highest in the Centre’s history." He also emphasized DIFC's commitment to driving economic growth and shaping the future of finance through initiatives like the Dubai World Insurance Congress (DWIC).
DIFC remains the co-host of the DWIC, one of the largest global insurance events, set to convene over 1,300 delegates from 73 countries. Key themes at this year’s Congress include attracting capital, embracing innovation, navigating volatile risks, and developing talent. The event will also feature a shark-tank style pitch by participants from the Lloyd’s Lab, aimed at stimulating innovation in the industry.
The survey conducted at DWIC in 2023 revealed strong confidence in the MEASA market, with property, health, energy, cyber, and liability lines of business holding the most potential. This confidence is reflected in the high renewal rates and client retention observed in 2023.
Over its 20-year journey, DIFC has played a pivotal role in driving the development of the insurance and reinsurance industry, attracting talent and technical expertise to access key markets in the Middle East, Asia, and Africa. The Centre's reputation as a recognized global market for insurance and reinsurance placements is further solidified by its renowned insurance brokers, five of whom rank among the top entities by AM Best. This growth reaffirms DIFC's status as a leading global hub for the insurance and reinsurance industry.
