The Dubai International Financial Centre (DIFC) has achieved a banner year in the insurance sector, registering a significant surge in underwriting volumes. According to a recent announcement, the DIFC witnessed a 23% year-on-year increase in gross written premiums, reaching a record-breaking $2.6 billion in 2023. This substantial growth solidifies the DIFC's position as a premier hub for the reinsurance and insurance industry.
This achievement comes alongside a rise in new insurance and reinsurance company registrations within the DIFC. The number of new entrants jumped by 20% in 2023, including the first-ever instance of a Guernsey-based captive insurance company redomiciling to the DIFC. This trend reflects the growing attractiveness of the DIFC's regulatory framework and business environment for insurance firms.
The DIFC's success in the insurance sector is attributed to a number of factors. The Centre offers a robust legal and regulatory framework specifically designed to meet the needs of the insurance industry. Additionally, the DIFC provides a tax-efficient environment and ease of doing business, making it an attractive location for international insurance and reinsurance companies.
Furthermore, the DIFC has actively fostered the development of its insurance ecosystem. The Centre has implemented initiatives to enhance risk management expertise, attract skilled professionals, and promote innovation within the insurance sector. These efforts have contributed to creating a dynamic and supportive environment for insurance businesses.
The DIFC's impressive performance in the insurance sector is a testament to its ongoing strategy to establish itself as a global leader in financial services. By providing a world-class infrastructure and fostering a supportive business environment, the DIFC is well-positioned to attract further investment and continue its growth trajectory in the years to come. The increasing activity in the insurance sector is not only beneficial for the DIFC but also serves the wider region by offering a broader range of insurance and reinsurance products and services. This can contribute to managing risks more effectively and supporting economic development across the region.