FAIR Publication Interview- Questionnaire

1. How do you see the market developments and broad trends in Africa and Middle

East markets?

In the Middle East, we are seeing increasing efforts by the insurance industries to promote

distribution of insurance and making its benefits available to a growing public at attractive and

commensurate prices. Insurance companies are, together with their reinsurers, striving to

devise new products, new distribution channels and better service. Digitalisation is a strong

support for those developments. As a reinsurer, we add a global perspective to managing risk

and developing markets with a local and regional expertise for our clients.

The important factors for our business are the management of exposure, including the one

from natural hazards and, to an increasing extent, also inflation. At a time when governments,

regulators and policy makers pursue to increase insurance penetration and the contribution of

the financial sector to the domestic economies, it is of utmost importance to provide the right

covers at the right price.

Africa is currently the second fastest-growing insurance market in the world. Reinsurance

premiums in Sub-Saharan Africa are steadily rising, going twofold between 2008 and 2019.

Over a 10-year period, gross written premiums have increased by nearly 7%, driven exclusively

by the Non-Life business, despite the depreciation of many African currencies against the

dollar. In 2021, African reinsurance accounted for 6.2% of the total African market, all activities

combined (insurance and reinsurance), posting an increase of 21.3% during the period 2017-


There is also increasing trends of protectionism with the majority of markets seeking to keep as

much premium as possible within the respective countries. This includes insurance regulators

driving for establishment of regional and / or local reinsurers, taxes levied against foreign


2. Which are the segments, African markets need more capacity and are they getting it?

In most African economies, there’s a lot of infrastructure development and this increases

demand for capacity in Engineering (Construction), Bonds and Marine. African markets mostly

look up to large global reinsurers for more quality capacity. The capacity is generally granted,

but not as much as usually requested as most markets would ask for sudden significant

capacity increase at once.

3. What are the growth segments in the Middle East markets? Are Middle East

re/insurance markets expected to witness larger investment and higher growth in


Our clients rely on Munich Re to provide outstanding quality, security and capacity both in

treaty and in facultative reinsurance. We are conscious that our capacity helps to grow and

develop our clients’ business and contributes to increasing the insurance penetration and

provides the protection for economic activity in the region. Areas where we expect a positive

growth momentum are in personal lines, construction, and also operational covers. The energy

sector is in a state of development while the world is stilly relying on fossil energy to a large

extent, the shift to renewable energy and hydrogen as the future new energy source is strong

and increasingly driven by Middle Eastern players.

4. Which are the segments, ME markets need more capacity and are they getting it?

The Middle East is a dynamically growing and prospering region with major economies being in

a transformation economically and marked through major investment into infrastructure and the

move from fossil-based energy to renewable energies. The (re)insurance of such

transformations as well as the insurance of complex infrastructures requires a lot of expertise

and capacity. Global reinsurers, together with their local partners, are prepared, and already

engaged in supporting the local and regional developments.

5. In what way, Asia and Africa can cooperate with each other to develop their

re/insurance markets?

Asia and Africa, and the Middle East as the link between the two continents, are an evolving,

dynamic, and growing area. The relevance on a global scale will going to increase

economically and the contribution to global economic value will grow further. This is based on

the growing population, its wealth in know-how, culture, natural resource, and economic

development. The Middle East is part of this development and will find its role on the global

stage by increasingly contributing its share to the world in the area of energy, trade,

entrepreneurial activity and know how. The Middle East has the wealth, the human resource,

and the energy to diversify its current economic base with a fresh and unloaded basis and the

geographic benefit to be centered between other growing areas.

We’re seeing a lot of investment in Africa by China and India on infrastructure projects. Munich

Re can utilise its expertise and presence in these markets to ensure that both reinsurance

markets benefit from the investments, instead of it being one sided.