Orlando airs views at MEA Risk & Insurance Forum

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The future of competition and pricing in the MEA area was on the agenda for the business strategy session of the MEA Risk & Insurance Forum in Dubai.

The forum is organised by Global Reinsurance and StrategicRISK.

The session was chaired by Global Reinsurance editor Samera Owusu Tutu.

The panel was:

  • PartnerRe head of high growth markets Salvatore Orlando
  • AIG (MENA) managing director Michael Jensen
  • Apex Insurance chief executive Zuhair Al Atout
  • Arig chief executive Yassir Albaharna

Some of the key points made by the panel were:

  •  Pricing pressure cannot continue to drive rates down, according to Orlando: ”In my view the only way for growth is market share, meaning reducing the price to get market share. Is this sustainable? I don’t think so”
  • Being a generalist insurance firm is rarely the best approach, said Jensen: ”You need to pick your segment. You can’t be everything to everyone in this market. Some people have tried but that really doesn’t work, at least not very well”
  • Clients, brokers and risk carriers are all complicit in driving prices down, according to Al Atout: “We are in a very small market so competition is very high”
  • There is a culture of “finger-pointing” in the MEA region which discourages new approaches

A longer version of the session will be part of the complete write-up of the event published in the next print edition of Global Reinsurance.