Gulf insurers will launch a fire risk fund
Tuesday, 03 15 2016, Category: Insurance and Reinsurance, Country: Gulf Cooperation Council
Gulf insurance companies agreed to establish a fire risk fund in order to cover fire risks. This step aims at investing and reinvesting insurance premiums within the GCC instead of ceding them in large parts to foreign reinsurance companies according to Engineer Saleh Bin Rashed Al Dhaheri, Chairman of the Executive Council of the GCC Insurance Federation (GIF) and Chairman of the Emirates Insurance Association (EIA).
Al Dhaheri said that the GCC Insurance Federation agreed to establish this fund to cover fire risks in order to provide the needed capacity and at the same time retain fire premiums within the GCC instead of ceding them to foreign players.
He indicated that the GCC Insurance Federation is preparing for such a step after the success of its previous experience when it established a fire fund in order to overcome the negative reaction of reinsurance companies, which declined such type of coverage in the region 10 years ago.