LLOYD’S BOOST TO MENA CONFIDENCE

Lloyd’s decision to establish an office in the Dubai International Financial Centre has given the market a boost, said Michael Watson, chairman and chief executive of Canopius, speaking ahead of an industry conference in Egypt. “One of the attractions that Lloyd’s and the DIFC are looking to promote is the use of service companies and cover holders. This is a key part of the way the Lloyd’s market trades, but is not easily done in many countries in the region. This is going to be a useful development”, Watson said. Potential growth in the insurance and reinsurance market in the Middle East is waiting to be unlocked, according to the panel of experts gathered by Guy Carpenter ahead of the 2014 General Arab Insurance Federation conference in Egypt. Chris Pleasant, managing director of Guy Carpenter, said excess capacity has put pressure on rates but that the margins will balance out as the market fulfills its potential.