30 years in the Middle East | Sector spotlight: Insurance with Zurich
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Peter, thank you very much for coming in.
You have been in the region for about 10 years now. Two difference stints.
And what we're looking at today is really your personal recollection
of what it was like then and how you find it now.
So, when I came in 2009, it was a very exciting time here in the region.
The oil price was well above what it currently is
at roughly US$60 a barrel
and the investment sentiment was very bullish.
In turn, we saw a lot of mega structures being brought up,
the likes of Burj Khalifa and nuclear power plants outside Abu Dhabi.
So as reinsurers at the time,
we had a great time in working with our clients.
If I compare that period with today,
obviously the oil price is now lower
but at the same time there is a strong desire
to move away from oil dependency.
And that also calls for interesting opportunities,
especially in the reinsurance place.
Peter, back in 2009 what did the regulatory landscape
look like and what did some of the products you offered then
look like as compared to how they develop now?
If I go back to 2009, if I look at the rulebook at that point in time,
I can just conclude that it was a much thinner version
than what we come across today.
And what I mean is that the environment,
it is a much more sophisticated approach now
and much more advanced.
So I think we made great progress
and we see very active regulators in countries
like Saudi Arabia with SAMA or even here in the DIFC under DFSA.
And are there any new risks which are needed to be covered now
which perhaps wouldn't have been on the landscape 10 years ago?
Absolutely. Emerging risks get a lot of attention today
and a good example are the cyber exposures,
very much driven by...
We saw an outbreak in 2012 with the Aramco losses
and that, I think, created a sense of urgency
in the market.
And it's also being encouraged by the regulator,
so yes there is an increasing demand also
for these kind of products.
So where Zurich is right now,
what are you looking forward to in the region
and where do you see the main opportunities for you being here?
The GCC remains a very important market for us,
all the GCC countries.
We have more than almost 70% of our assets are in the UAE
and in neighbouring countries like Saudi Arabia.
But we also see a lot of significant investments in North Africa
and that's why in terms of geographical diversification,
if you wish,
we look more actively at these countries,
say Africa in general
but also some select opportunities in India and Pakistan.
And Dubai still remains a key hub for that for you?
Absolutely. I think we have worked hard
to put in place a very lean and agile outfit
and I think the way the business is set up here in the DIFC
is definitely that and
we look to build and develop this hub even further.