Middle Eastern Energy Insurance Market: Poised For Continued Growth
The Middle East insurance market has undergone significant growth in recent years characterized by a complex mix of international reinsurers, regional carriers, and a broad range of cover holders and managing general agents (MGAs). Over the past 10 years international carriers have been pouring in to complement the long-established domestic carriers.
Oil, gas, and petrochemical capacity (under the banner of energy) has been the axis of considerable regional growth and has helped promote the Middle East as an insurance hub of global significance – mirroring the role that the Gulf Cooperation Council (GCC) and broader region play in the global geopolitics of oil and gas.
The viability of regional carriers began to divert premium away from the more traditional hubs in London/Europe, and, as a result, the international markets have sought to set a more proactive strategy for the region by considering regionalizing underwriting authority.
This paper looks at the reasons behind these changes and the current conditions within the local market that lead us to believe that it’s set for continued growth.