UAE – Challenges of reinsurers
Thursday, 04 27 2017, Category: Insurance and Reinsurance, Country: U.A.E
The reinsurance market in the United Arab Emirates faces different challenges such as the decreased prices compared to other emerging countries. Moreover, there are is a number of other challenges despite the attractiveness of the local market such as the overflow of capacity whether from local or international players.
Additionally, there is a reinsurance capacity at insurers themselves also. Among the challenges we note the increase of insurance losses in lines such as real estate, engineering and energy. Moreover, the decrease in oil prices represents an additional pressure as it reduced the growth prospects of the sector.
Therefore, despite the significant growth achieved by reinsurance companies in the country, they still face the saturation of the market, overcapacity and strong competition on the same shares, which led to a decline in profits.
Source: Al Bayan - UAE