Reinsurers’ exit reduces capacity, drives up rates

Around 15 reinsurers exited the Middle East region in the past two years, resulting in sharp capacity reduction and increased risk retention by local insurers leading to rate hikes, especially in the property segment, Middle East Insurance Review reported. Saad Eddine M. Dimachkie, CEO Middle East at SIACI Insurance Brokers, said that COVID-19, increased loss events and exit of reinsurers have resulted in up to 30% rate hikes for low-loss risks and as much as a 100% increase for cyber, fraud and civil liability risks.