The challenges of the Arab reinsurance market
Friday, 10 16 2015, Category: Insurance and Reinsurance, Country: Middle East
Mr. Abdul Khaliq Rauf Khalil, Secretary General of the General Arab Insurance Federation “GAIF” said that the Arab insurance market has 20 reinsurance companies which have a total shareholders’ equity of USD 2.8 billion.
He indicated that despite the high solvency ratios of these reinsurers they do not benefit from satisfactory market shares out of the total ceded business of primary insurers in the Arab world. Therefore, Arab premiums are lost as they are ceded outside the Arab world within reinsurance treaties indicating also that foreign reinsurance companies are strengthening recently their positions in Arab markets.
Mr. Rauf Khalil revealed to “Al Mal News” that Arab reinsurance companies are under the pressure of insurance supervisory authorities especially with respect to financial strength rating where insurance regulators impose minimum acceptable ratings in order to admit reinsurance ceded by Arab insurance companies which fall under their jurisdictions.
Source: Al Mal News