DIFC endeavors to promote the development of a thriving regional insurance market. Global and regional insurers, reinsurers and brokers are attracted to set up in the centre due to its world-class infrastructure, legislation and regulation.
In many cases, international players tie up with regional firms to establish a new entity to cater to the region’s demand for insurance and reinsurance services.
With the growing presence of regional and international players, the insurance penetration in the market has grown, outpacing that of industrialised countries.
In view of the notable rapid development of Takaful, Islamic insurance and reinsurance, over the recent years, firms are eager to establish in the centre to meet the needs of the Islamic market.
An important facet of the Insurance sector is Captives, which is rapidly gaining appeal in the region. With the economic development, growing industrialisation, rapid growth of international trade, international mergers and acquisitions, improved regulation and increased focus on corporate governance, the region is witnessing a change of attitude towards corporate risk management, and a growing awareness of the need for innovative ways to finance the future cost of corporate risk.
For firms looking to finance and manage corporate risk, DIFC’s regulatory framework, coupled with its favourable tax environment, offers a convenient platform for the establishment of captive insurance companies. Furthermore, the flexibility of the DFSA in providing the regulation of Protected Cell Companies positions the DIFC among the most forward-looking financial centres.